Queenstown least affordable for homes

Auckland and Queenstown have again been confirmed as having the most unaffordable housing for locals. It takes 93.2 per cent of a median income to pay the mortgage on a median-priced Queenstown house bought in August, up from July's 80.4 per cent. In Auckland, it takes 70.2 per cent of a median income to pay the mortgage on a median-priced house bought last month, down from July's 72.3 per cent, the data found.

Anything over 30 per cent is ranked unaffordable and 20 per cent is seen as attractive.

Queenstown's median house price last month was $515,000, compared with Auckland's $445,000 and the national $350,000.

The Roost Home Loan Affordability index out yesterday from interest.co.nz found the national median weekly take-home pay for a typical buyer was $764.07 in August, up 1.5 per cent from the $752.90 in August last year.

Aucklanders make about $811.14 a week, and in Queenstown the figure is $706.40 a week.

Five years ago, median New Zealand weekly take-home pay was $621.73.

Aucklanders are paying $569.12 a week on mortgages, Queenstown people $658.65 and New Zealanders $447.62.

Elsewhere, housing is getting cheaper.

"Affordability improved significantly in West Auckland, Hastings, Taranaki, Wellington City and Dunedin as median house prices fell sharply. But affordability worsened slightly in Whangarei, Tauranga, Porirua and the Kapiti Coast because of higher house prices," Roost spokeswoman Margaret Smith said.

"Affordability has been improving since December as house prices have flattened out and interest rates have fallen," she said.

Saving the 20 per cent needed before banks grant a mortgage now takes 10.4 years, according to the index, which bases its data on a 25-year mortgage paid weekly using the two-year average bank interest rate.

Figures are gathered from Statistics New Zealand, theReal Estate Institute and Inland Revenue to calculate how difficult it is for a three-person household of one adult working full-time, one female working 50 per cent and one child aged 5.

Bernard Hickey of interest.co.nz said the figures showed a patchy scene.

"New Zealand and Auckland home loan affordability improved because of lower fixed interest rates, but it's still tough on the North Shore and in central Auckland as a shortage of non-leaky buildings and foreign buying keeps prices firm," he said.

The report cited tax cuts from October 1 as one factor which could improve home loan affordability.

Another property survey out yesterday found flat sale volumes and prices. The Mike Pero Mortgages-Infometrics Property Cycle Indicator found sales were 27 per cent lower than at the same time last year and median house prices were up only $1000.

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Posted: 24 Sep 2010