
Most read
‘Optimistic borrowers’ could endanger housing market, RBA says...
‘Optimistic borrowers’ could endanger housing market, RBA says...

Latest Podcast
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...

Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
Invest
First home buyers brace for strengthening headwinds
While Australian first home buyers dominated the market in 2020, increasing their market share by 50.4 per cent in the past year, they're likely to face strengthening headwinds as prices soar.

First home buyers brace for strengthening headwinds
While Australian first home buyers dominated the market in 2020, increasing their market share by 50.4 per cent in the past year, they're likely to face strengthening headwinds as prices soar.

The Real Estate Institute of Australia (REIA) has released their latest Housing Affordability Report, which showed that while housing affordability declined nationally in the December quarter, it improved over the year by 0.7 per cent.
Higher house prices and larger loans were deemed the main contributors to the quarterly affordability decline, according to REIA president Adrian Kelly in a statement.
Mr Kelly said that median house price rose across the country in 2020 despite doomsday predictions, due largely to increasing first buyer demand.
Overall, first home buyers increased their market share by 50.4 per cent over the year, motivated by low interest rates and the range of first home buyer incentives on offer, Mr Kelly explained.
But, according to Archistar's chief economist, record breaking first home buyer activity is set to face strengthening headwinds.
Dr Andrew Wilson explained that with sharply rising home prices set to continue and government incentives and support policies expiring, the property market is set to become more challenging for first home buyers.
"In these circumstances and faced with ongoing low incomes growth, it will be increasingly difficult for first home buyers to save the deposit necessary to keep up with higher prices," Dr Wilson explained.
Mr Kelly agreed. Noting that while the rising trend in home ownership is great news, he opined that increasing house prices could further decline affordability unless supply levels are improved, particularly in regional Australia.
As of date, the proportion of income required to meet loan requirements – the measure for housing affordability – nationally has increased to 34.8 per cent.
Across states and territories, NSW stood out as the least affordable, with proportion of income required to meet loan repayments at 44.6 per cent, while the most affordable is the Northern Territory at 21.9 per cent.
“It is now more affordable to buy than rent in the Northern Territory,” Mr Kelly said.
In the rental market, affordability declined by 0.2 per cent over the quarter, with the proportion of income required to meet rent payments increasing to 24.0 per cent. However, the number increased annually by 0.4 per cent nationwide.
Tasmania took the record of the least affordable state to rent, with the proportion of income required to meet rent repayments now higher than the national level at 29.5 per cent.
On the other hand, Western Australia is the most affordable, with the proportion of income required to meet median rents increasing to 17.8 per cent.

Property
Policy failures see houses become unattainable for young Australians, minister says
Australia’s booming house prices are the result of the government’s failed policies, with the younger generation now unable to afford what their parents could, a minister has said. ...Read more

Property
House prices to grow by 25% over 3 years
New research is predicting a large gain in property prices of around 25 per cent through to the end of 2023, driven mainly by low interest rates. ...Read more

Property
Strict cap on short-term rentals delayed following criticism
Following widespread criticism from councils and online rental companies, the introduction of NSW’s planned holiday rental code of conduct has been pushed back by three months. ...Read more

Property
Melbourne becomes Australia’s 2nd most affordable rental market
While most capital cities saw house rents soar to new record highs over the first quarter of 2021, Melbourne continued to lag behind – becoming the second most affordable capital city to rent in Aus...Read more

Property
Why home buyers are now more open to high-priced properties
Buyers are more likely to spend more to secure a property as their preferences shift towards bigger spaces with higher price tags, recent data has shown. ...Read more

Property
Government brushes aside RBA’s debt blowout warning
The government said it is not concerned about the RBA’s warning that the financial system could be rocked if there’s a debt blowout, in fact it is “very pleased” that confidence levels are lea...Read more

Property
Have first home buyers been pushed out of the market?
Latest figures have shown a monthly decline of over 3 per cent in first home buyer activity, but levels still remain at their highest since 2009. ...Read more

Property
‘Optimistic borrowers’ could endanger housing market, RBA says
The Reserve Bank of Australia has issued a caution, noting that optimistic borrowers could lead to a deterioration in the quality of lending, increasing the risk in the housing market. ...Read more

Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now

Raging floods, the tech stock bubble and the ongoing SG debate
Listen now

Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now

The continued property boom, ethical investing and engaging with your super fund
Listen now

Property
Policy failures see houses become unattainable for young Australians, minister says
Australia’s booming house prices are the result of the government’s failed policies, with the younger generation now unable to afford what their parents could, a minister has said. ...Read more

Property
House prices to grow by 25% over 3 years
New research is predicting a large gain in property prices of around 25 per cent through to the end of 2023, driven mainly by low interest rates. ...Read more

Property
Strict cap on short-term rentals delayed following criticism
Following widespread criticism from councils and online rental companies, the introduction of NSW’s planned holiday rental code of conduct has been pushed back by three months. ...Read more

Property
Melbourne becomes Australia’s 2nd most affordable rental market
While most capital cities saw house rents soar to new record highs over the first quarter of 2021, Melbourne continued to lag behind – becoming the second most affordable capital city to rent in Aus...Read more

Property
Why home buyers are now more open to high-priced properties
Buyers are more likely to spend more to secure a property as their preferences shift towards bigger spaces with higher price tags, recent data has shown. ...Read more

Property
Government brushes aside RBA’s debt blowout warning
The government said it is not concerned about the RBA’s warning that the financial system could be rocked if there’s a debt blowout, in fact it is “very pleased” that confidence levels are lea...Read more

Property
Have first home buyers been pushed out of the market?
Latest figures have shown a monthly decline of over 3 per cent in first home buyer activity, but levels still remain at their highest since 2009. ...Read more

Property
‘Optimistic borrowers’ could endanger housing market, RBA says
The Reserve Bank of Australia has issued a caution, noting that optimistic borrowers could lead to a deterioration in the quality of lending, increasing the risk in the housing market. ...Read more