One thing this dumb election has fixed for a while: house prices

As house prices have fallen, housing affordability has improved in more than half of the country’s regions in the last three months.

The latest Massey University Home Affordability Report looks at house prices, the cost of borrowing, and wages.

The report shows housing affordability has slightly improved nationwide, largely driven by falling prices in Northland, Wellington and Central Otago Lakes. In Northland median house prices dropped $30,000, in Wellington by $28,000, and Central Otago Lakes by $35,000.

Central Otago Lakes is still the least affordable region in the country.

Auckland is the second least affordable, but overall affordability in the city has improved slightly in the last quarter.

It is one of the seven regions across the country, out of 13, which have seen improvements in the latest report.

The problem has been the election.  Or the solution, if you like.   People aren’t making any significant investment decisions be they personal or for business while they aren’t sure if they are going to have a new government lusting for new taxes such as Capital Gains Tax, or they get to have a government that is going to let another 70,000 people in that need somewhere to live.

Those are quite diametrically opposed approaches, so until the market know what’s the new normal for the next three years, there has been a dampening effect that appears to make housing more affordable for now.

 

– RNZ

 


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