House affordability at a five-year high - Survey

Housing affordability has reached a five year high, according to a survey. Housing affordability improved to its best level in five years in January because of a fall in house prices and sharp reductions in mortgage interest costs, a monthly survey by interest.co.nz found.

The website's editor Bernard Hickey said it was predicting housing would be affordable again for most New Zealanders by the end of 2009.

"All of the trends are converging to make housing much more affordable for both families and single income home buyers.

"House prices are sliding, interest rates have fallen fast, taxes are set to be cut again and incomes are rising, even if much more slowly," Mr Hickey said.

These had all combined to reduce the proportion of after tax income needed to service mortgages on median homes, he said.

Meanwhile, the Sunday Star Times reported that mortgagee sales listings had increased in the past year on two top real estate websites - Trade Me and realestate.co.nz.

To read the full NZ Herald article click here

Posted: 15 Feb 2009

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