Housing affordability declined in Western Australia
Housing affordability declined in Western Australia over the December 2024 quarter.
The latest Real Estate Institute of Australia (REIA) Housing Affordability Report showed the proportion of family income required to meet loan repayments in Western Australia increased 2.5 percentage points over the quarter to 42.5 per cent.
This was an increase of 5.6 percentage points year-on-year, based on a median weekly family income of $2,675 and an average monthly loan repayment of $4,931.
REIWA CEO Cath Hart said affordability continued to be impacted by strong property price growth, which has seen the size of loans increase.
“The Perth median house sale price increased 23.3 per cent in the year to December 2024 and the regions have also seen strong growth. As a result, larger mortgages are needed to purchase property,” Ms Hart said.
“The report shows the average loan size in WA rose 7.3 per cent over the quarter and nearly 20 per cent over the year to $598,771, which has seen monthly loan repayments rise.
“There may be a slight reprieve in the next quarter following the RBA’s rate cut in February. For every 0.25 per cent cut in interest rates, the proportion of family income required to service the average loan usually drops by around 1 percentage point. This will of course be moderated by any property price growth over the quarter.”
Across the country, housing affordability declined in every state and territory in the December quarter.
WA remained the most affordable state, with only the two territories being more affordable.
New South Wales remained the least affordable place in the nation, with home owners requiring 59.9 per cent of family income to meet loan repayments.
