Akl housing market more affordable, figures say
Latest figures show Auckland's housing has become a bit more affordable, but one property expert says that's not true.
The Massey University Home Affordability index has improved just over 9 percent in the latest quarter. All regions notched up an annual improvement, except for Central Otago.
But property expert Olly Newland says measures aimed at helping housing affordability are having the opposite effect for first home buyers.
He says lower interest rates and loan-to-value ratio restrictions aren't working.
"The actions by the Reserve Bank are the wrong actions, in my view," he says. "Well-meant, I'm sure, but the wrong actions.
"I think we are going to continue to see more of the same."
Mr Newland says the latest figures are a statistical blip and don't reflect reality.
Labour agrees, saying it's time for the Government to head back to the drawing board when it comes to house prices.
Labour's housing spokesperson Phil Twyford says although Auckland's housing market has softened in recent months, it won't last.
"There are already signs that the demand in Auckland, that the lack of supply of housing is starting to drive prices back up."
He says there's a fundamental supply shortage which measures such as loan-to-value ratio restrictions don't address.