Improvements in affordability nationwide

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.