Housing affordability plummets across New Zealand
New research from Massey University shows the affordability of homes nationwide has dropped by 11.4% over the past 12 months …
Even worse news, The Home Affordability Report found the situation is expected to deteriorate, with mortgage rates set to rise. It’s compounded by a decline in the national average wage in 10 of the 12 regions surveyed.
The emphasis is mine, the “brighter future” is all National’s.
Investors move in as first-home buyers fold
Property investors are the big winners from the Reserve Bank’s mortgage restrictions, while first-home buyers are increasingly struggling to afford a house. …
… data from property analysis company CoreLogic has shown activity among investors who owned two or more properties had hit a 10-year high. Big investors with more than 10 properties were the most active, buying about two out of every five homes in August.
The emphasis is mine. 2 / 5 homes bought by big investors? Of course first time buyers don’t stand a chance. Oh – sorry! – investors disagree!
Wellington Property Investors Association president Jackie Thomas-Teague said there would be a good time for first-home buyers in future and there was no need to panic over “a dimple in the marketplace”. “Investors are not pushing up prices. They never do. I don’t think they are in competition with first-home buyers,” she said.
Westpac bank chief economist Dominick Stephens said the investor surge was predicted when the loan-to-value ratio restrictions were introduced. “Our view was it would have relatively little effect on house prices, as property investors would come in and replace the first-home buyers.”
And so it has come to pass – thanks National. With three more wasted years coming up, the Kiwi dream is over.