House prices add up
Saturday, 8th June, 2019
By Emily McInerney
Australia’s housing affordability is the best it has been since 2016 with property in some cities and regions the most attainable.
This research has been released by a new ANZ CoreLogic report which showed in Broken Hill and the Far West that a home loan would cost 9.2 per cent of a household’s income with rent costing 25.9 per cent.
The 9.2 per cent was what would be required to service an 80 per cent loan to value ratio mortgage.
ANZ’s Home Owners Lead, Kate Gibson, said they are seeing more affordable houses across Australia.
“Buying a home is an aspiration for many Australians and for the first time, we’re seeing suburbs and towns in every state where it is more affordable to buy than rent,” she said.
“This shift, combined with record low interest rates, is driving more first home buyers to look at entering the market. For the first time in fifteen years most buyers are not chasing a rising market.”
Century 21 McLeod’s Principal Matthew Handberg said locally the median house price was $126,000.
“From April 2018 to March 2019, there were 338 recorded house sales,” Mr Handberg said.
“House prices can also be seen to be heading in a positive direction.”
Mr Handberg said data shown on PriceFinder.com had the median house price in 2017 at $99,000, 2018 at $120,000 and 2019 at $135,000.
“There was a rise of 12.5 per cent,” Mr Handberg said.
“It doesn’t necessarily indicate that property prices are up by 12.5 per cent but that properties sold were in a higher price range.
“This pulls the median price up.
“It depends on what the buyers want.”
Mr Handberg said the ANZ CoreLogic report showed average home repayments were lower than weekly rent.
“But you do have to factor in other expenses including rates, water and insurance which isn’t the case as a tenant.
“Broken Hill is one of the more affordable centres in NSW.”
Mr Handberg said the supply and demand for housing in Broken Hill was on par.
“There is strong demand from buyers but also strong demand from vendors looking to sell.
“A number of people ask me if the market is slow in the winter months but there is no indication of that.
“If a property for sale meets the market; it doesn’t matter.
“The main thing is if people consider going into a real estate transaction often they think they have to wait until spring.
“But if you list in spring, everyone else is doing that. There is more competition.
“If you list in winter there is a smaller pool of properties.”
He said the Reserve Bank of Australia’s decision to cut interest rates by 1.25 per cent would be beneficial for buyers.
“If banks and lending institutions pass that on, it will be more beneficial for buyers again.
“We have record low rates.