About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, October 18th, 4:57PM
rss
Latest Headlines

Improvements in affordability nationwide

Lack of affordability has long been a problem for New Zealand’s housing market, but a new report suggests the tide could be turning.

Friday, August 9th 2019, 10:14AM

by The Landlord

The latest Massey University Home Affordability Report shows an improvement in affordability at a national level, as well as in 13 out of 16 regions, in the second quarter of 2019.

While national affordability improved by a modest 1.2% over the most recent quarter, the annual results show a solid increase in affordability of 5.4%.

Massey University’s David White says the improvements were driven by declining house prices in many regions, combined with a reduction in mortgage interest rates and a modest 1.3% increase in wages.

“The key yearly drivers are a 5.35% decrease in residential mortgage rates, which are down to 4.78% from 5.05% a year ago.

“Incomes have also increased by 3.2%, or $18,000, nationally over the past year so these two things have offset the 3.2% increase in median house prices.”

White says that while it is difficult to forecast affordability, it is possible a medium trend could be forming.

“We have had two quarters that have been positive for affordability and we are going into the winter quarter, which is seasonally muted for house prices.

“We also have a positive economic environment for continued low interest rates and income growth.”

Looking around the country, 13 regions saw an improvement in affordability over the most recent quarter, while only three regions saw a decline.

Further, over the past 12 months only four regions are showing declines in affordability.

Northland saw the biggest improvement in affordability over the most recent quarter: it improved by 11.6%, largely due to a decrease in the region’s median house price.

The region also saw an 11% improvement in annual affordability. This was second only to West Coast, which has improved by 22.5% over the past year.

At the other end of the scale was Gisborne which saw the biggest decline in affordability over the past year. It was down by 44.1%.

White says Gisborne’s decline in affordability has been driven by increasing prices. “In the most recent quarter, alone, the region’s median house price when up by 12.8% or $50,000.

“The Real Estate Institute attributes this increase in Gisborne to strong growth in higher-end properties, combined with strong demand and limited stock availability.”

Meanwhile, the national house price-to-income ratio is also showing improvement for the quarter, with house prices moving from 8.8 to 8.9 times annual wages.

Auckland remains the country’s least affordable region and median house prices there are 12.2 times annual wages.

 

Tags: affordability Auckland house prices housing market interest rates Massey University\ Mortgage Rates mortgages property investment real estate

« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchStronger market on the cards »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 ▼4.05 ▼3.95 4.49
ANZ Special - ▼3.55 ▼3.45 3.99
ASB Bank 5.20 ▼4.05 ▼3.95 4.39
ASB Bank Special - ▼3.55 ▼3.45 3.89
BNZ - Classic - ▼3.55 ▼3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 4.15 4.09 4.39
HSBC Premier 5.24 3.35 3.35 3.35
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kiwibank 5.80 4.30 4.24 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.49 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 4.50 4.86 3.89 3.94
Lender Flt 1yr 2yr 3yr
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.65 3.59 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.49 4.39 4.85
TSB Special 5.29 3.69 3.59 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.34 - - -
Westpac Special - ▼3.55 ▼3.45 3.99
Median 5.34 4.05 3.95 4.05

Last updated: 18 October 2019 9:00am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com