Houses get a little easier to afford

The latest AMP Home Affordability survey holds out a skerrick of hope for those who thought home ownership was beyond their grasp.

New Zealand houses became 1.3 per cent more affordable in the three months to February - the first quarterly improvement in two years - as lower house prices and a slight increase in wages offset higher interest rates.

The survey's author, Graham Crews, a senior lecturer in real estate at Massey University, said the main factor was a fall in the median dwelling price to $295,000.

Jane Anderson, AMP's general manager of public affairs, said sales dropped significantly during the quarter. Anecdotal evidence also showed buyers were making home-buying decisions more slowly.

Six of the 12 regions surveyed showed an improvement in home affordability. Hawkes Bay led at 4.2 per cent, followed by Otago (3.9 per cent), Wellington (2.4 per cent), Southland (2 per cent), Canterbury/Westland (1.9 per cent), and Auckland (0.5 per cent).

Taranaki homes, however, became 20 per cent less affordable than in the previous quarter, followed by Central Otago Lakes, 11.1 per cent less, Nelson Marlborough on 10.5 per cent, Northland on 6 per cent, Waikato/Bay of Plenty/Gisborne on 2.5 per cent and Manawatu/Wanganui on 1.2 per cent.

Auckland remained the least affordable place to buy a house, and Southland the most affordable.

- NZPA