First-home buyers were literally shut out of home ownership through record unaffordability in August, according to a survey released yesterday.
The www.interest.co.nz home affordability survey found that in Auckland, almost 100 per cent of a single median income was required to afford the mortgage on a median-priced house purchased in August.
In Wellington it was now well over 80 per cent.
The report outlined changing home loan affordability for typical buyers and first-home buyers in New Zealand, and for 12 regions. Current real estate prices, mortgage rates and incomes were three key determinants of home loan affordability.
Affordability reached its weakest point for Auckland, Wellington, Central Otago Lakes and Otago, and for Canterbury remained at the weakest record set in July.
However, it improved slightly from its weakest point in Northland, Waikato/BOP, Hawkes Bay, Manawatu Wanganui and Southland.