New Zealand home loan affordability improved slightly in January after a fall in median house prices more than offset a small increase in fixed mortgage rates, acccording to interest.co.nz’s home loan affordability report.
Wellington saw the biggest improvement in affordability followed closely by the region around Queenstown as median prices slid the most there.
Queenstown however is still the most expensive housing market in New Zealand relative to incomes, but is now only slightly worse than Auckland.
Across the nation, affordability is just better than its worst levels since early 2007 near the peak of the housing boom, with the proportion of a single median after tax income needed to service an 80% mortgage on a median house falling 1.5% points to 62.1%. –