Southland still most affordable
Southland houses remain the most affordable of the country, a Massey University report shows.
The Home Affordability Report shows there has been a 10.5 per cent improvement in affordability for Southland in the past 12 months. This is followed by Taranaki with a 4.9 per cent improvement.
There was a 4.4 per cent improvement in national affordability during the most recent quarter, June to August, due to falling house prices and historically low residential mortgage rates, the report shows.
There has also been a small improvement of 2.1 per cent in affordability during the past 12 months.
The report’s author Associate Professor Graham Squires said house prices continue to be the key driver. ‘‘Across New Zealand, median house prices decreased by 3.4 per cent this quarter. In dollar terms, that means the median house price decreased by $19,500.’’
Central Otago Lakes remains the most expensive region, with Auckland second, but both regions were among those showing a decline in house prices, he said. ‘‘Auckland’s median price fell by $14,000 and Central Otago Lakes’ by $20,000.’’
During the past year, eight regions showed improvements in affordability, aided by a significant decrease in residential mortgage rates, Squires said.
‘‘We are currently seeing the lowestever mortgage rate in the two-year fixed data series, so the ability for homeowners to repay mortgages looks favourable.’’