Slumping house prices good news for first home buyers

"With home values coming down and interest rates beginning to ease, affordability is slowly improving for buyers in many areas, however higher living costs, rising unemployment, the broader economic downturn and stretched household budgets continue to restrict demand," Andrea Rush, QV national spokeswoman says. 

The BNZ says housing affordability is 17% better since its low point in December 2021.

From a starting position of severe unaffordability, BNZ chief economist Mike Jones says the past few years have seen house prices – in most regions – decline, mortgage rates cut, and wage growth – while having slowed – continue to chug away in the background.”

According to the BNZ’s housing affordability index, the combination of these factors puts affordability at the least bad level since December 2020. Relative to the index low point in