Home Affordability Stable For Third Quarter
AMP Banking Survey - Home Affordability Stable For Third Quarter In A Row
Home affordability remained stable for the third quarter in a row, with affordability declining only slightly in the September quarter according to the latest AMP Banking Home Affordability Report.
Home affordability soared in October last year following interest rate falls and homes reached their most affordable levels in the 10 years of measurement in June this year. The September quarter saw only a small drop in affordability of 0.6% driven by a slight upward movement in the quarterly median house price of 0.7%.
AMP Banking Marketing Manager, Paul Sweet said, "continued low interest rates have been the major factor behind the stability of home affordability over the last year".
He said, "unfortunately the upward pressure on interest rates we're seeing now may threaten this stability. AMP Banking is increasingly seeing customers looking to combine floating and fixed rates as a means of protecting themselves against any movement."
The AMP Banking survey indicates that all regions showed an improvement in affordability over the last 12 months. North Island regions showed the highest improvements with Northland the most improved region at 36%. Otago and Southland showed the smallest improvements over the twelve months with 20.8% and 24% respectively. Auckland and Southland remained the least and most affordable regions respectively.
The quarterly report released today is prepared for AMP Banking by Massey University's Real Estate Analysis Unit. It combines data on housing prices, mortgage interest rates and average weekly earnings to produce a home mortgage affordability index indicator. The survey uses data information supplied from Statistics New Zealand and the Real Estate Institute of New Zealand.