Housing squeeze continues as affordability drops nationwide

Modest house price gains through the tail-end of last year were big enough to counter cheap finance and higher wages, and squeezed home affordability in the three months through November, according to Massey University research.

The quarterly home affordability report showed a 2.2 per cent decline nationwide in the period as a 4.6 per cent lift in the median house sale price was enough to outweigh a 0.5 per cent increase in incomes and lower mortgage rates.

While the deterioration was most stark in Southland, Northland and Taranaki, which all registered double-digit declines, Southland remains the most affordable region, followed by Taranaki.

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Source: The New Zealand Herald