New Report Shows Lower Quartile House Prices Declining in Auckland
Houses are becoming more affordable for first-time buyers in Auckland, at least, according to the latest Home Loan Affordability Report by interest.co.nz. The report details that lower quartile house prices in Auckland have fallen consistently for three months in a row.
While the drop in house prices is relatively small, this new pattern has interested real estate experts who previously thought lower-quartile house prices to be at a standstill. In March of 2019, lower quartile home prices were at a high of $650,000 but have since dropped to $670,500 (as of June).
First-time home buyers are particularly well placed to benefit from this recent trend. As well as falling house prices, mortgage interest rates in Auckland are falling, too. According to interest.co.nz’s report, mortgage rates are the lowest they have been since the site began collecting data in 2002. In terms of weekly payments, this means that first-time homeowners could be paying an average of $50 less per week on a mortgage payment.
This good fortune is not limited to Auckland, either. Across New Zealand, the real estate market has seen a similar trend and first-time homebuyers across the country could benefit. Waikato, Wellington, and the Bay of Plenty are among some of the regions to see falling house prices similar to those in Auckland.
While potential first-time homebuyers should take notice of current falling house prices, it has yet to be confirmed whether this trend will continue as spring and summer approach or whether this decline in house prices is simply temporary.