House Prices

Nationwide home affordability improves

Auckland has retained its position as the least affordable location to buy a house in New Zealand, according to the latest Massey University Home Affordability Report.

Wednesday, March 28th 2012

However, during the first quarter national affordability improved 4.9% and seven of the 12 regions also showed improvement.

Taking an annual view, the trend towards greater affordability is even more pronounced, up 8.8% with Canterbury the only region from 12 to see a decline in affordability in the past year.

Massey University said affordability had improved - and more first-time buyers were entering the market - due to three key drivers; a fall in the median house price to $355,000, an increase of $4.06 in the average wage and a decrease in the average monthly mortgage interest rate from 6.15% to 6.08%.

"It seems historically low mortgage rates, combined with more relaxed lending criteria by banks , are beginning more first-time buyers into the market," said Professor Bob Hargreaves of Massey's Real Estate Analysis Unit.

Given the role of interest rates, the report suggests the improvements in affordability may be short lived.

"Interest rates will not remain this low indefinitely," Hargreaves said.

"Increased turnover rates indicate that demand is causing pressure in parts of the housing market, particularly in Auckland and Christchurch."

Over the last quarter seven locations showed improvements in affordability; Southland (9.1%), Auckland (6%), Otago (4.9%), Canterbury/Westland (4.7%), Otago/Lakes (3.4%), Manawatu/Wanganui (2.9%) and Taranaki (1.7%).

Affordability worsened in Northland (3%), Hawkes Bay (2.9%), Nelson/Marlborough (1.2%), Wellington (0.5%) and Waikato/Bay of Plenty (0.4%).

Despite its improved affordability over the quarter Auckland remained the least affordable location, closely followed by Otago/Lakes with Nelson/Marlborough in third place.

 

 

Most Read

SBS FirstHome Combo 4.29
Unity First Home Buyer special 4.29
Co-operative Bank - First Home Special 4.85
China Construction Bank 4.85
TSB Special 4.89
ASB Bank 4.89
Kiwibank Special 4.89
Westpac Special 4.89
Kainga Ora 4.89
BNZ - Std 4.89
AIA - Go Home Loans 4.89
Nelson Building Society 4.93
Westpac Special 4.95
BNZ - Std 4.95
China Construction Bank 4.95
Wairarapa Building Society 4.95
Kiwibank Special 4.95
AIA - Go Home Loans 4.95
TSB Special 4.95
ANZ Special 4.95
ASB Bank 4.95
SBS Bank Special 4.95
SBS Bank Special 5.39
Westpac Special 5.39
Co-operative Bank - Owner Occ 5.59
ASB Bank 5.59
BNZ - Std 5.59
BNZ - Classic 5.59
AIA - Go Home Loans 5.59
Kainga Ora 5.69
Kiwibank Special 5.79
ANZ 5.79
TSB Special 5.89
SBS Construction lending for FHB 3.94
AIA - Back My Build 4.44
CFML 321 Loans 4.99
Co-operative Bank - Owner Occ 5.95
Co-operative Bank - Standard 5.95
Heartland Bank - Online 5.99
Pepper Money Prime 6.29
Kiwibank - Offset 6.35
Kiwibank 6.35
TSB Special 6.39
China Construction Bank Special 6.44

More Stories

Four decades of 6-7% yearly house price growth ending

Friday, March 21st 2025

Four decades of 6-7% yearly house price growth ending

New Zealander’s reliance on property capital gains in the mid-single digits is at an end.

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

Friday, January 31st 2025

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

It’s been years in the making and former real estate agent Mike Harvey is now coming to market with his platform matching buyers and sellers, an offering he says will be a gamechanger for the industry.

Leaving last year's stumbling housing market behind

Friday, January 17th 2025

Leaving last year's stumbling housing market behind

As interest rates ease and job losses climb, New Zealand’s housing market faces a mixed year of modest growth, with conflicting forces shaping the outlook for homebuyers and investors.

Don’t bet on house prices rising faster than incomes

Wednesday, January 15th 2025

Don’t bet on house prices rising faster than incomes

Former Reserve Bank Governor and National Party leader Don Brash says there are grounds for believing that house prices may finally have ended the three-decade period when they rose significantly faster than incomes.