Housing affordability in New South Wales improved during the March quarter, according to PRD Nationwide's Q3 Key Market Indicators report.
The state's home-loan affordability index clocked in at 28.3 in the quarter, up by 3.3% over the past year. This improvement was on par with the overall Australian growth of 3.4%.
However, the number of first-home buyers in the state declined by 11%. This is in line with the overall slump across all states.
"Political uncertainty and tougher lending policies seem to have impacted first home buyers across Australia, including NSW. That said, a softening in median property prices across NSW means it record the lowest decline in the number of first home buyer loans compared with Victoria and surprisingly, Queensland," PRD Nationwide said.
The report said New South Wales demonstrated more resilience towards political uncertainty and lending conditions due to the state's lower unemployment rate at 4.6% and higher weekly median family income of $1,774.
"First home buyers will have more opportunities for the rest of 2019," PRD Nationwide said.
The chart below shows the key market indicators for New South Wales: