A December quarter report has found the median house price in Australia had jumped by 3.5% to $641,457, making it harder for some potential homebuyers to own a property.
Adelaide Bank and Real Estate Institute of Australia have this week published its Housing Affordability Report that revealed a 6.6% increase in median house values compared to the Q4 2013 data.
The report stated that the proportion of income required to meet loan repayments in Australia went up to 31.5%, an increase of 0.7% to the equivalent quarter in 2013.
The most noticeable change occurred in Tasmania, where the required income for repayment applications rose 1.5% to 25.9% in the same December quarter.
However, the highest proportion of income required still is with New South Wales, making it the least affordable state for homebuyers. NSW’s required proportion is at 36.2% - a notable 4.7% rise from the national average.
Victoria’s proportion of income required to meet home loan repayments increased by 1.5% to 33.4%. Queensland’s proportion of income requirement also jumped to 28.4%.
Meanwhile, other regions such as South Australia, Western Australia, and Northern Territory have proportions of income required to meet monthly loan repayments at 27.8%, 26.1%, and 28.1%, respectively.
The Australian Capital Territory emerged to be the most affordable state to buy a home, despite a 1% increase to 20.4%.