House Prices

Housing affordability improving

Housing affordability has improved year-on-year almost everywhere in New Zealand– except Auckland, according to Massey University.

Tuesday, October 09th 2012

It has issued its latest Real Estate Analysis Unit report, evaluating affordability based on house prices, interest rates and average incomes.

During the third quarter, ending August 2012, national affordability improved by 2.8%, and eight of the 12 regions also showed improvements.

Affordability improved nationally by just under 5% over 12 months.

And despite Auckland’s overall 0.4 per cent deterioration in affordability in the past year, the region has seen a 2.7% improvement in the last three months.

Director of the unit, professor Bob Hargreaves, said: “House prices in Auckland are increasing faster than other regions due to the imbalance of new supply to meet demand from the increasing population. In the short run, while interest rates stay low and builders aren’t building, houses prices will continue to rise in Auckland.”
He said low interest rates were also a factor.

Regional quarterly improvements were led by Manawatu/Wanganui (9.4 per cent), followed by Hawkes Bay (8.4 per cent), Waikato (4.9 per cent), Taranaki (3.9 per cent), Nelson/Marlborough (3.6 per cent), Auckland (2.7 per cent), Otago/Lakes (1.4 per cent) and Otago (0.7 per cent).

In four regions housing affordability deteriorated over the past quarter: Northland (3.7 per cent), Wellington (1.4 per cent), Southland (0.5 per cent) and Canterbury/Westland (0.3 per cent).

Comments

No comments yet

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

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.