New South Wales Continues To Be More Affordable
New South Wales (NSW) achieved a bronze medal award nationally in the ‘PRDnationwide Q2 2019 Key Market Indicator Awards’, for the most improved home loan affordability index growth, increasing by 2.6% over the past 12 months (to the December quarter of 2018). This is double the Australian average home loan affordability index growth, which was 1.3% during the same period. This marks a significant period within the NSW property cycle and is good news for first home buyers, as it indicates that increasing affordability is a continual pattern in the state, and not simply a short phase.
Even more encouraging for first home buyers, NSW took out the gold award nationally for the highest number of dwelling approvals, recording 5,018 approvals in February 2019. Although this signifies a -15.3% decline over the past 12 months (to February 2019), the high number of dwellings approved will further increase property supply and provide first home buyers with more choices. NSW has already seen an increase in first home buyers, with 7,634 of first home buyer loans approved (a 1.7% increase) in the December quarter of 2018. Although, this was a slower growth when compared to the Q2, Q3 and Q4 of the 2018 PRDnationwide Key Market Indicator figures. Thus, there is a need to rebuild first home buyer’s confidence in the NSW market.
NSW continues to have strong economic fundamentals to support a vibrant property industry for the rest of 2019, by taking out a gold award nationally for the most improved unemployment rate. NSW also achieved the bronze award nationally for lowest unemployment rate and a silver for highest median weekly family income growth. The NSW unemployment rate declined by -14.0% between March 2018-2019, declining at a higher rate than the Australian average of -9.1%. The state’s employment rate in March 2019 was 4.3%, which was much lower than the Australian average of 5.0%. Furthermore, median weekly family income in NSW increased by 2.7% between the December quarters of 2017-2018, bringing it equal to the Australian average of $1,765.
The ‘PRDnationwide Q2 2019 Key Market Indicators’ provide a quick snapshot of the current state of the market in Australia from both an economic and property perspective. The Indicators cover both national and state level data, comprising of:
- Number of loans to first home buyers
- 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
View the Q2 2019 Key Market Indicators.