Auckland least affordable area

New Zealand home loan affordability improved in July by its biggest amount in 18 months to its best levels since September last year as fixed mortgage rates dropped and house prices eased, the Roost Home Loan Affordability report shows.

Affordability improved significantly in Queenstown, Waikato/Bay of Plenty, Hawkes Bay, Nelson, Wellington and Canterbury because house prices fell.

But affordability worsened slightly in Northland, Manawatu, Otago and Southland because house prices rose.

Auckland is now the least affordable area in New Zealand, taking that mantle from Queenstown for the first time since January 2002.

Affordability is set to improve further through the second half of 2010 if house prices keep falling in a "buyers market" and further concerns about the global economy drive market interest rates lower.

Personal tax cuts from October 1 are also set to further improve affordability.

To read the full NZ Herald article, click here

Posted: 19 Aug 2010

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