Are Hawke's Bay homes more affordable?

Hawke's Bay homes are apparently becoming more affordable.

Hawke's Bay houses are more affordable according to the latest Massey University Home Affordability Report, which shows an improvement of 4.6 per cent over the past three months based on regional income levels.

The improved affordability was mainly due to falling mortgage rates and static house prices.

TelferYoung property valuer and the chairman of the Hawke's Bay branch of the Property Institute of New Zealand, Trevor Kitchin, said the median price in the region did not mean houses were cheaper. More lower-end house sales had dragged down the median house price.

"The bottom end of the market is more active, probably first-home buyers and investors," he said.

Historically-low interest rates helped affordability and the Reserve Bank had cut the Official Cash Rate by 0.25 per cent since the report period, from June to August.

New Zealand home affordability improved by 2.3 per cent over the quarter, but the national index still shows a year-on-year decline of 6.7 per cent.

Mr Kitchin said Hawke's Bay would likely become less affordable according to the Index. Recent sales figures show the top end of the market was more active. "Probably as we go forward you will see that median to ease up," he added.