While the result appears positive for Sydney’s home buying market, HIA’s NSW Executive Director, Mr Graham Wolfe said the March quarter figures reflect a fall in the number and size of new home sales over the period.
“The report shows a fall in the number of high-end sales over the first three months of 2008,” Mr Wolfe said. “Sales over the March quarter were in the medium to lower house price ranges.”
“Sydney’s new home buyers appear to be responding to the recent interest rate rises (up 0.8 of a percentage point during the March quarter), by borrowing less and purchasing modest homes,” said Mr Wolfe.
The average home loan repayment now stands at $3064 per month in Sydney.
The result was less favourable across the rest of NSW, where affordability fell by 6.2%, leaving the average loan repayment at $2325 per month.
Mr Wolfe used today’s figures to stress the importance of cooperation and co-ordination between the State Government, local councils and industry to ensure NSW received a proportionate share of Federal Government funding from the housing programs announced in last week’s Federal budget.
“Federal Government funding allocations for infrastructure, affordable rental assistance and planning reform will go long way to assist many NSW families through this housing affordability and rental crisis in NSW,” Mr Wolfe said.
“We must work together to ensure the state secures a firm hold on this opportunity,” Mr Wolfe stressed.