National median house price falls $10,000

The median house price now stands at $350,000 and has fallen $10,000 in the past quarter, the University’s latest Home Affordability Report shows.

Central Otago Lakes is the least affordable region followed by Auckland and Wellington, while Southland retains its place as the most affordable region. Otago is in second place and Manawatu/Wanganui takes third spot.

Nationally, home affordability improved by 5.2 per cent in the three months to February 28 and it is even better news for house-buyers as mortgage rates went down and wages increased.

Average monthly mortgage interest rates is the second affordability driver and decreased from 6.63 per cent to 6.59 per cent while the average weekly wage increased from $972.69 to $991.05, says report compiler Professor Bob Hargreaves director of the University’s Real Estate Analysis Unit.

“The housing market continues to be characterised by very low turnover rates, flow on effects from the Christchurch earthquakes, a firming of house prices in Auckland, expectations that mortgage interest rates will remain stable in the short term and an exodus of New Zealanders to Australia,” Professor Hargreaves says.

The annual national affordability index improved by six per cent, an increase of 4.8 per cent over the previous ten out of 12 regions showed improved annual affordability.

In the past three months, seven out of 12 regions showed improvements in affordability; Canterbury/Westland 9.1 per cent, Waikato/Bay of Plenty 4.9 per cent, Auckland 4.8 per cent, Nelson/Marlborough 0.7 per cent, Otago and Wellington both 0.6 per cent and Manawatu/Wanganui 0.5 per cent.

Professor Hargreaves says the Canterbury/Westland data should be treated with caution since it reflected the small number of house sales in a market disrupted by the earthquakes.

The five regions showing quarterly reductions in affordability were Southland 5.8 per cent, Hawkes Bay 4.7 per cent, Northland 4.6 per cent, Taranaki 3.3 per cent and Central Otago Lakes 1.7 per cent.

Read the full report here

The latest rental publication is also available here