A measure of home loan affordability shows it improving to its best level in 10 months, with fixed mortgage rates and house prices both lower.
According to the latest Roost home loan affordability index, published today, 59.5 percent of a median income would be needed to pay the mortgage on a median priced house bought in July.
That is down from 61.3 percent the month before, having peaked at 83.4 percent in March 2008.
Based on the monthly measure, calculated by interest.co.nz in association with Roost, affordability has been improving since last December as house prices flattened out and interest rates fell.
In July, affordability improved significantly in Queenstown, Waikato/Bay of Plenty, Hawke's Bay, Nelson, Wellington and Canterbury because house prices fell.
But affordability worsened slightly in Northland, Manawatu, Otago and Southland because house prices rose. Auckland is now the least affordable area in New Zealand, taking that mantle from Queenstown for the first time since January 2002.
NZPA