Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Falling mortgage rates change affordability trends

Falling mortgage rates change affordability trends

The latest Massey University Home Affordability Report shows some improvement in affordability figures over the past three months, due mainly to falling mortgage rates and broadly static house prices.

“Even Auckland falls in line with this trend – affordability in our largest city has improved by 4.9 per cent since our last report in June,” says Massey University senior property lecturer Dr Susan Flint-Hartle. “Having said that, affordability in Auckland has still decreased by 16.6 per cent over the past 12 months.”

The report, which covers the period from June 2015 to August 2015, shows home affordability across New Zealand improved by 2.3 per cent over the quarter, but the national index still shows a year-on-year decline of 6.7 per cent.

“While affordability trends show some improvement in this report, the relative levels of affordability across the country haven’t really changed much. You must remember that these small improvements are coming off the back of historic levels of unaffordability,” Dr Flint-Hartle says.

Auckland remains 52 per cent less affordable than the national average – down slightly from 56 per cent last quarter, but still close to that historic high.

Regional movements in affordability have largely been driven by house prices. Central Otago Lakes, Southland, Manawatū/Wanaganui, Northland and Taranaki, which experienced the largest improvements in affordability, also had the largest falls in house prices.

“Meanwhile, the only region not to show some improvement over the past three months was Nelson/Marlborough, where house prices increased by the largest margin,” Dr Flint-Hartle says.

Dr Flint-Hartle also points out the Reserve Bank has reduced the Official Cash Rate by a further 0.25 per cent since the period covered by the report.

“While that reduces borrowing costs for homebuyers, improving affordability in the short-term, it remains to be seen whether lower mortgage rates also push up house prices in the longer-term.”

Download the full Massey University Home Affordability Report, with regional breakdowns, here:


Key findings:

• Annual deterioration in national affordability of 6.7 per cent

• Quarterly improvement in national affordability of 2.3 per cent

• Quarterly improvements in all regions except Nelson/Marlborough

• Quarterly improvement in Auckland affordability of 4.9 per cent


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why Herd Immunity Isn’t A Valid Option, And What’s With Our Reluctance To Wear Masks?

Herd immunity has recently bounced back into the headlines as a tool for managing Covid-19, and as a supposed alternative to lockdowns. In the US, a group of scientists was recently brought together in the town of Great Barrington, Massachusetts by a think tank funded by the Koch brothers. The assembled scientists signed the so called Barrington Declaration, which promotes herd immunity as a rational means of re-opening US public schools and the economy at large... More>>


Gordon Campbell: On National Being Shafted By Its Own Creation

As it licks its wounds, let’s hope the National Party can still find time to look back with some pride at what it has achieved in Epsom. The Act Party’s nationwide success on Saturday night has been a tribute to National’s foresight, and to its ... More>>


Green Party: 'Fruitful Discussions ... Further Discussions To Have'

The Green Party says there is a negotiation going on with the Labour Party, but there are more discussions to be had. More>>


Border: No Changes To Border Exemptions After Fishing Crew Test Covid-19 Positive

The cases were detected after routine day three testing but the immigration minister and air commodore agree there's no need to change border exemptions. More>>

PSA: Labour-Led Government Has Mandate For Transformation, Equality And Transparency

The Public Service Association welcomes the progressive electoral landslide New Zealand voters delivered on Saturday, and the union says its members look forward to implementing policies that reduce poverty and inequality, support affordable housing ... More>>


Stats NZ: New Report Shows Significant Changes To New Zealand’s Climate

Climate change is already happening in New Zealand and could have a profound impact on future generations of New Zealanders, a new report from the Ministry for the Environment and Stats NZ says. Our atmosphere and climate 2020 , released today, includes analysis ... More>>


Judith Collins: Obese People Must Take Responsibility For 'personal Choices'

National Party leader Judith Collins has described obesity as a weakness and says people should not 'blame systems for personal choices'. More>>

Māori Party: Poll Reveals Tamihere On Cusp Of Historic Māori Movement Election Victory

John Tamihere’s election campaign is on the rise and on track to return the Māori Party to parliament, a new Māori TV poll has revealed. The poll released on 11 October during the seventh and final Māori TV Maori Electoral campaign coverage has Tamihere ... More>>

Gordon Campbell: On Four-Year Terms Of Parliament, And On How The US Courts Are Dismantling Democracy

Last week, the issue of four-year parliamentary terms surfaced again. Infuriatingly, it is being discussed purely in terms of its convenience for political parties. They’d get so much more time to enact their policies, free of scrutiny or sanction by voters ... More>>





InfoPages News Channels