Loans growing four times faster than wages
The average home loan has grown 4.5 times faster than the average full-time wage, according to the Australian Bureau of Statistics (ABS).
The ABS found the average home loan grew by 18.5 per cent in the two years to April from $301,800 to $357,500. During the same period, the average full-time wage grew only 3.6 per cent from $77,225 to $80,054.
Mortgage Choice chief executive, John Flavell, said in comparison in 2013, the average loan size was just 3.9 times the average full-time wage.
"Research conducted by RP Data found property values climbed by 2.8 per cent and 2.9 per cent in Sydney and Melbourne respectively over the month of June alone. Worse still, in the last 12 months, Sydney values have soared by 16.2%, while Melbourne values have risen by 10.2%," Flavell said.
"At the Inquiry into Home Ownership last month, Treasury's acting deputy secretary Macroeconomic Group, Jenny Wilkinson, said demand for housing continues to outstrip supply in many markets across Australia and more needs to be done to address the issue."
However, Flavell noted that the problem was not discussed and consumer voices were not heard and opinions were not sought.
"This suggests these inquiries are designed to allow a lot of political grandstanding and not a lot of action," he said.
Flavell said to get a true picture of the current state of the property market and how housing affordability affects different buyer groups and renters, Mortgage Choice has launched an investigation into housing affordability through a survey.
"Housing affordability is a function of property prices, income levels, the cost of and access to credit as well as supply of rental accommodation. To have a positive impact on affordability, drive up the instances of home ownership and reduce rental burden, all of these levers should be considered and used."
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