Home affordability improves in the three months to Feb 28

Monday 4th April 2011

Homes became more affordable in the three months to February 28 as house prices and mortgage rates fell.

Affordability improved by 5.2% in the three months to February 28 as the median house price fell by $10,000 to $350,000, according to Massey University's latest Home Affordability Report. Affordability has improved by 6% over the last year.

Average monthly mortgage interest rates decreased from 6.63% to 6.59%, while the average weekly wage increased from $972.69 to $991.05, said Professor Bob Hargreaves, director of the University's Real Estate Analysis Unit.

Central Otago Lakes, with an index of 133.1% of the national average, was the least affordable region. Next was Auckland at 126% and Wellington at 105.1%.

Southland retains its place as the most affordable region with an index of 65.6% of the national average, Otago is in second place at 70.6% followed by Manawatu/Wanganui in third at 74.8%.

In the past three months, the Canterbury Westland region improved affordability by 9.1%, Waikato Bay of Plenty improved by 4.9%, Auckland by 4.8%, Nelson/Marlborough 0.7%, Otago and Wellington both 0.6% and Manawatu/Wanganui 0.5%.

The survey's authors said Canterbury Westland data should be treated with caution as the number of house sales was low after the Canterbury earthquake.

NZPA

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