May 2007 home loan affordability index

PRESS RELEASE

www.interest.co.nz has released its May 2007 home loan affordability index, a monthly series.

See the attached Release.

This index measures how much take-home pay is required to service a standard mortgage payment for a median-priced house.

This May 2007 report shows that affordability is dramatically falling.

For most regions of New Zealand, it is not possible for one earner on an average income to afford a median-priced house and with house prices racing higher in April, along with the significantly higher interest rates driven by the actions of the Reserve Bank, first home buyers are essentially locked out of the housing market.

But there are areas where affordability is not so tough.

For more information, see www.interest.co.nz,

ENDS

See... Full report (PDF)

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