House affordability level its worst ever

video House affordability level its worst ever

Título: House affordability level its worst ever

Autor: ofInterestNZ

Descrição: http://www.interest.co.nz A slight blip up in the median house price in March and the relentless rise in interest rates have combined to shunt New Zealand housing affordability to a record low.The Fairfax Media Home Loan affordability report shows the average 2 year fixed mortgage rate rose almost 10 basis points to 9.64% in March, which compounded the damage done by a slight rise in the median house price to take the national affordability level to its worst ever. The full national and regional home loan affordability reports are available here for regular home buyers and here for first home buyers. The proportion of median take home pay required to service the mortgage on a median house rose to 83.1% in March from 80.2% in February and surpassed the record 83.0% seen in November last year when house prices hit their peak. This is also worse than the 77.8% seen in March last year and almost double the 44.2% seen in March 2003 when housing was seen as only just affordable. Most bankers believe anything more than 40% of after tax pay is unaffordable. Affordability worsened sharply in Northland and Wellington because of a bounce back in house prices. Wellington's figure of 90.7% of take home pay to service the median mortgage rose from 82.9% in February and was up from 46.3% in March 2003. Home loan affordability improved slightly in Waikato/Bay of Plenty, where the portion of take home pay needed to service the mortgage fell to 80.7% in March from 83.9% in February because house prices nudged lower. Affordability improved substantially in Nelson Marlborough because of a drop in prices, with the mortgage payments dropping to 82.5% from 91.9%. The least unaffordable region in New Zealand remains Southland, which saw the portion of after tax median income needed to service the mortgage on a median house falling to 50.1% from 52.7%. It is up from 19.3% in March 2003. The most unaffordable region continues to be the Central Otago Lakes district where 124.1% of take home pay is required to service the mortgage on the median house. That's down from 132.8% in February because of lower house prices, but is up from 70.3% in March 2003. Affordability for first home buyers also worsened to 72.6% of median take home pay to buy the first quartile house from 70.8% in February and 36.1% in March 2004.

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