Thursday 12th January 2012
|Text too small?|
Auckland has overtaken Central Otago as the least affordable region to buy a house, according to Massey University’s latest home affordability report.
Affordability deteriorated 5.8 percent in Auckland and 0.3 percent in Central Otago in the quarter ended in November. The biggest drop in affordability was in Hawke’s Bay, with an 11.4 percent decline. Nationally, affordability dipped 1.9 percent for the past quarter, a period in which the median house price rose 3 percent.
In view of the recent financial turmoil in Europe it is surprising house prices are increasing in several regions, said Bob Hargreaves, professor at Massey University’s school of economics and finance.
“Very low mortgage rates combined with more relaxed lending criteria are combining to bring more buyers into the market and new construction is still at very low,” Hargreaves said.
Annually, the nation’s affordability index improved 9.1 percent, compared with 8.4 a year earlier.
NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.
No comments yet
NZ dollar holds gains on improved dairy, bank capital outlook
MARKET CLOSE: NZ shares gain; banks rally on Reserve Bank capital decision
NZ dollar rises; bank capital rules less harsh than expected
RBNZ relaxes capital requirements, allows preference shares, extends phase-in
NZ dollar extends gain amid mixed US data, possible trade progress
MARKET CLOSE: NZ shares dip on eve of major regulatory decisions
NZ dollar sees off global headwinds, holds above 65 US cents
NZ dollar holds above 65 US cents; dairy auction prices mixed
Dairy index falls on weaker butter, milk fat demand
MARKET CLOSE: NZ shares join global decline; US tariff move weighs on exporters