Housing affordability on the improve - report

It became easier for New Zealanders to afford a home in the three months to February, according to Massey University.

The Massey University Home Affordability report measures house prices, weekly wages and mortgages, and over the three months the national affordability index improved by 8.3 per cent.

The home affordability index for the last three months stood at 29.62, compared to the November figure of 32.31.

The lower the index the easier it is to afford a house.

House prices were down by 2.2 per cent. The average weekly wage increased by 1.1 per cent and the weighted average mortgage rate decreased by 5.2 per cent to 8.34 per cent.

Improvements to debt servicing ability were offset by tighter lending requirements, particularly the 20 per cent deposit rate now required by most lenders.

Over the last quarter 11 of the 12 regions showed improvements in affordability.

The only region showing a decline was Southland at 3.2 per cent, but it was the most affordable region with an index of 61 per cent of the national average.

Central Otago Lakes remains the least affordable region with an index of 146.8 per cent of the national average. Next comes the Auckland region at 121.1 per cent followed by Nelson/Marlborough at 109.1 per cent.

- NZPA