Affordability improves for Victorian homeowners
In good news for those looking at buying a property in Victoria, recent data shows housing affordability across the state has improved 20 per cent since 2010.
That's according to data released by the Real Estate Institute of Victoria (REIV), with the organisation stating these favourable conditions are increasing activity in the residential property market.
At the property sector's price peak in December 2010, the average Victorian household would have forked out 26.1 per cent of its annual salary to meet loan repayments, while during the same period last year, 21.4 per cent of a household's yearly income was needed.
"This is 60 per cent higher than the average total household income of $1,216 per week as those paying back a mortgage have a higher income than those who are renting or who own outright," the organisation stated.
The REIV attributed the increase in affordability to low interest rates, a drop in house prices and a rise in Victorian incomes.
It added: "As the market is the midst of a mild recovery it would be expected that the income required to pay back a loan will slowly increase making this autumn a good time to upgrade to a new home."