"...in the last 12 months there were just under 120,000 first-home buyers. While there are few details of the price paid, the ABS data shows that the average loan size was $535,000 which fits with prices around 15 to 25 per cent below the median.This shows that these buyers are being realistic and buying a property that is, for them, affordable.Is affordability about to improve?There are plenty of signs that housing affordability is improving and will continue to improve over the next few years.In the first instance, the pace at which house prices are growing is slowing, with rises of just 0.3, 0.3 and 0.4 per cent in each of the last three months. This is well down on the 1 per cent or more monthly increases 12 to 18 months ago. With demand cooling as immigration slows and with new listings rising, the demand/supply imbalance is correcting. These trends are likely to work in concert with the deterioration in the labour market to see house prices stall, perhaps fall, over the next year or two."
