Australia’s housing affordability is the “best it has been since 2016” according to new research from the ANZ-CoreLogic Housing Affordability report.
The report has found that over the last two years, housing affordability has been improving “much faster” than the previous decade.
Hobart has been revealed to be the least affordable capital city for renters, with Darwin the most affordable capital city for buyers.
Sydney is still the least affordable city for buyers, with Melbourne following closely behind.
The report, however, has labelled property across some cities and regions as the “most attainable” it’s been in decades.
Cameron Kusher, CoreLogic Head of Research for Australia, said “the recent drop in property values follow a long period where prices increased at a much faster pace than household incomes.”
“We predict that price falls will settle later this year, followed by modest price growth starting from 2020,” Mr Kusher said.
Time taken to save for a deposit
RateCity.com.au has crunched the numbers on median dwelling prices for each capital city, compared to when each city was at its market peak, and every city has shaved time off of the average amount taken to save for a deposit.
To save a 10 per cent deposit on a median Sydney dwelling when prices were at their peak, you’d have to pocket $400 a week for over four years. However, since prices have fallen this has shaved around six months off of this time.
It’s a similar story in Melbourne, with peak market conditions meaning borrowers had to wait over three years to save for a 10 per cent deposit, versus 2 years, 10 months today.
Time taken to save deposit – today versus market peak
Time taken to save a 10% deposit based on weekly savings of $400
Median dwelling value 2019
Dwelling value at market peak
Dwelling in 2019
Dwelling at peak
3 years 7 months 2 days
4 years 1 month 5 days
2 years 10 months 18 days
3 years 2 months 12 days
2 years 3 months 8 days
2 years 3 months 28 days
2 years 0 months 9 days
2 years 0 months 13 days
2 years 0 months 16 days
2 years 5 months 5 days
2 years 1 month 1 days
2 years 1 month 10 days
1 year 10 months 5 days
2 years 4 months 19 days
2 years 8 months 26 days
2 years 8 months 28 days
Notes: Figures based on CoreLogic Hedonic Home Value Index: May 2019 figures. Peak calculated from CoreLogic change in dwelling values data. Time taken to save for a 10 per cent deposit based on weekly savings of $400 and savings account at 2 per cent – calculated daily, accrued monthly.