Hawke's Bay homes become less affordable

Homes became less affordable in Hawke's Bay by 2.9 per cent in the latest quarter according to the latest Home Affordability Report from Massey University's Real Estate Analysis Unit.

During the quarter, ending February 2012, national affordability improved by 4.9 per cent.

Regional quarterly improvements were led by Southland (9.1 per cent), Auckland at (6.0 per cent), Otago (4.9 per cent), Canterbury/Westland (4.7 per cent), Central Otago/Lakes (3.4 per cent), Manawatu/Wanganui (2.9 per cent), and Taranaki (1.7 per cent).

Northland was the only region to fall further than Hawke's Bay at 3 per cent.

Nelson/Marlborough fell 1.2 per cent, Wellington (0.5 per cent), and Waikato/Bay of Plenty (0.4 per cent).

Nationally the drivers of affordability improved for the quarter.

The national median house price fell to $355,000, there was a $4.06 increase in the average wage and the average monthly mortgage rate decreased from 6.15 per cent to 6.08 per cent.

On an annualised basis, Hawke's Bay has improved 7.2 per cent and nationally it improved by 8.8 per cent.

"It seems historically low mortgage rates, combined with more relaxed lending criteria by the banks, are bringing more first-time buyers into the market," professor Bob Hargreaves, director of Massey's Real Estate Analysis Unit said.

"Of course, interest rates will not remain this low indefinitely."

Of the 12 regions, only Canterbury has declined in affordability over the past year.

The QV Napier residential property values for February were 2.2 per cent below where they were a year ago and 7.7 per cent below the peak of December 2007.

Hastings values remained at the same level as where they were a year ago and they were on average 8.5 per cent below the peak of April 2008.