Wairarapa homes lure out-of-towners

Aucklanders are heading south to Wairarapa to snap up cheap housing, a Wairarapa agent says.

Home affordability in the Wellington region improved in the last year, with Aucklanders heading south to Wairarapa to snap up cheap housing, a Wairarapa agent says.

National home loan affordability improved last month to its best rate in five months as home loan restrictions drove down prices in most areas, the Roost home-loan affordability report has revealed.

The report measured the percentage of after-tax pay needed to service an 80 per cent mortgage on a median-priced house.

Home loan affordability in the Wellington region, including Wairarapa, improved from 53 per cent in December to 49.6 per cent in January, compared with 51.8 a year ago. Separate figures for Wairarapa were unavailable.

According to the latest Real Estate Institute of New Zealand figures, the median house price in Wairarapa dropped $6500 to $270,000 in the month to January. The Wellington region's average weekly pay cheque after tax for people aged 30-34 is $820.19 - up from $799.36 in January last year.

Professionals Patrick & Scott Ltd principal Andy Scott said local sales had ramped up as people wised up to how affordable housing in Wairarapa was.

People were coming from as far afield as Auckland to buy local property.

"It's not the majority of our business but there's certainly more interest from further afield."

However, the Reserve Bank's home loan lending restrictions had quashed the majority of demand from first home buyers, he said.

Nationally, housing affordability improved from 60.7 per cent in December to 57 per cent in January after national house prices dropped $25,000 to $402,000.

The median weekly pay packet after tax for the 30-34 age bracket is now $820.19 up from $799.36 a year ago.

Median house price in Wairarapa dropped $6500 to $270,000 in the month to January.

The Wellington region's average weekly pay cheque after tax for people aged 30-34 is $820.19 - up from $799.36 in January last year.