Affordability of new zealand homes drops
The affordability of homes in New Zealand has fallen in the past year, according to new figures.
A report from Massey University's Real Estate Analysis Unit, which covers the quarter from March to May 2014, shows that affordability has dipped 7.6 per cent in the past 12 months,
The report's author Professor Bob Hargreaves attributes the decrease to the average annual wage increase of $34.53 not being high enough to offset a $38,000 increase in the national median house price, as well as a rise in average mortgage interest rates from 5.57 per cent to 5.64 per cent.
The trend is expected to continue.