Q4 2017 PRD Key Market Indicators - Australian Capital Territory
Believe it or not… the Australian Capital Territory (ACT) has recorded the highest home loan affordability index reading, at 50.6 points. This exponentially surpasses the Australian average of 31.8 index points. ACT also recorded the highest growth in the number of first home buyer approved loans, at 21.8% over the past 12 months (to June 2017).
The PRDnationwide Q4 2017 Key Economic Indicators provide consumers with a quick snapshot of the current state of affairs from an economic and property perspective. The PRDnationwide Key Economic Indicators cover both national and state level data, comprising of:
- Number of first home buyer loans
- Home loan affordability index
- Number of dwelling approvals
- Consumer sentiment index
- Standard variable loan
- Consumer price inflation index
- Unemployment rate
- Weekly family income
- Nett migration
ACT was number 2 on the list of states with high home affordability growth, at 3.9% over the past 12 months (to June 2017). That said, from an index point perspective it has had the highest level of affordability – at 50.6 index points – surpassing the Australian average of 31.8 index points.
This is good news for ACT residents, especially those wanting to enter the market. The number of first home buyer loans has increased by 21.8% over the past 12 months (to June 2017), which further confirms that the time to buy is now.
These exciting findings in regards to affordability and first home buyer growth can be potentially attributed to more employment, as ACT’s unemployment rate sits at 3.3 index points. Not only is this the lowest unemployment rate across the nation, it also represents a decrease of 5.7% - almost double the Australian average decrease (of 3.6%). Furthermore, weekly family income has increased to $2,632 (1.8% annual increase), indicating wage growth and strong potential for future economic growth.
Dwelling approvals have seen cooling measures, decreasing by 0.9% to 581 approvals over the past 12 months (to June 2017). Nett migration has significantly increased, currently at 1,674 in March 2017. This ensures current stock will be absorbed in the market, however also hints at a potential undersupply.
For a closer look at the PRDnationwide Q4 2017 Key Economic Indicators visit PRD.com.au/research-hub