Kelvin Davidson: Cotality Chief Property Economist on the housing value-to-income ratio reaching its lowest since mid-2019
Lower mortgage rates and income growth have helped improve housing affordability.
Cotality NZ’s new report finds the national value-to-income ratio reached its lowest point since mid-2019 in the June quarter, at 7.5%.
National property values also remain almost 17% below their post-covid peak.
Cotality Chief Property Economist Kelvin Davidson told Mike Hosking mortgage serviceability has seen a significant change, compared to its 2022 high of 57%.
He says it now takes around 44% of the median household income, so it's getting close to normal.
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