Auckland has overtaken Central Otago Lakes as having the least affordable real estate in New Zealand, the latest home affordability report from Massey University shows.
In the past quarter, homes slipped further out of reach of buyers in Auckland while in Central Otago Lakes, which previously held the top spot, affordability improved.
The University’s home affordability index, which is calculated using the key drivers of interest rates, wages and house prices, shows that nationally, affordability fell 1.9% in the past quarter as the national median house price went up by 3%.
Report compiler Professor Bob Hargreaves, from the University’s School of Economics and Finance, said that in view of the financial turmoil in Europe it is surprising that house prices are increasing in several regions, Auckland in particular.
Source: Property Wire