Housing affordability has been a big issue for the Sydney property market for a while now, and concerns don't seem likely to subside any time soon. That's because details of the Adelaide Bank/REIA Housing Affordability Report for the third quarter of 2015 have been released, and they show property prices are still rising.
On average, a family needs to dedicate 31.7 per cent of their income to meeting home loan repayments. This marks a rise of 1.4 per cent from the June quarter and is 1.3 per cent higher than the previous year.
"Already the least affordable, New South Wales recorded the biggest fall in housing affordability across the country. New South Wales is still the only state or territory with an average loan size above $400,000," said president of the Real Estate Institute of Australia Neville Sanders.
As a result, you're likely to need a bigger home loan in order to secure real estate in Carlton and other parts of Sydney. There is some good news, though, as the latest lending figures show the value of loans granted to owner occupiers is on the rise.
The strength of property prices in the New South Wales capital was also emphasised through the CoreLogic November Home Value Index. It placed the Harbour City's median dwelling price at $810,000, which was significantly higher than the $602,500 recorded in second-placed Melbourne.
Total gross returns in the city reached 16.8 per cent over the course of the month. Yearly value rises registered at 12.8 per cent, showing investors have made some decent returns.
If you're thinking about investing in real estate in Carlton, then now could be a good time to do it. Speak to our team for expert advice on finding property in this sought-after area of Sydney.