Property

Housing affordability plummets in June quarter

Rising house prices and interest rates in the June quarter caused the steepest decline in home affordability since the December 1996 quarter, the latest AMP Home Affordability Report shows.

Thursday, August 05th 2004

The index declined 7.9 per cent in the quarter with the Auckland region leading the way with an 11.2 per cent decline.

The annual decline in affordability was 8.5 per cent - the eighth consecutive fall in affordability in that series.

AMP said the drop was mainly due to rising home prices. The median price of a home rose 7.4 per cent to $248,000 in the June quarter.

A 1.5 per cent lift in average weekly earnings, was insufficient to offset the rise in house prices and interest rates.

Twice during the quarter the Reserve Bank hiked the Official Cash Rate by quarter of a percentage point. Retail banks hiked mortgage rates commensurately.

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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