Average mortgage payments fall 5.6% in year to June from 2009, Stats NZ says. Your view?

Average weekly mortgage payments fell from NZ$376 in the year to June 2009 to NZ$355 in the year to June 2010, figures released by Statistics New Zealand show.

Meanwhile average weekly rent payments fell only NZ$2 over the year to NZ$242, Stats NZ said in its latest Household Economic Survey.

The fall in mortgage payment continued a decline from NZ$387 in the year to June 2008, which was mainly due to a fall in mortgage interest payments, Stats NZ said.

“For those making mortgage payments in 2009/10, 20% made weekly payments over NZ$500, down from 24% in 2008/09 and 27% in 2007/08, but up from 17% from 2006/07,” it said.

Other figures showed average weekly expenditure on ‘housing’ costs, including mortgage and rent payments, rose by NZ$40, or 18.8% to NZ$253 over the three years from June 2007 to June 2010.

The rise in housing and household utilities costs - expenditure on rent, mortgage principal repayments, property maintenance and improvements, property rates, and household energy – was the biggest factor in overall weekly household expenditure rising 6.1% to NZ$1,101 over the three years, Stats NZ said

Between 2006/07 and 2009/10, the increase in average weekly (housing) expenditure was mainly due to rent, up NZ$22 (32.7%) to NZ$88; and household energy, up NZ$7 (19.5%) to NZ$43, with electricity up NZ$6 (19.8%) to NZ$37. These averages for household spending for rent include those households not paying rent or mortgage payments.

Average annual household income increased from NZ$68,710 to NZ$76,584 between 2006/07 and 2009/10, driven by increases in wages and salaries, other government benefits, and New Zealand Superannuation and war pensions, Stats NZ said.

Here is the release from Stats NZ:

Average weekly household expenditure increased by $58 to $1,010 between 2006/07 and 2009/10, Statistics New Zealand said today. This increase was due to higher average weekly expenditure on housing and household utilities (up $40), food (up $15), and communication (up $5). However, spending on household contents and services decreased $5.

 

Results from the latest three-yearly Household Economic Survey (HES) showed significant changes in household spending between 2006/07 and 2009/10:

 

• housing and household utilities – rent, up $22 to $88; and household energy up $7 to $43, with electricity up $6 to $37
• food – restaurant meals and ready-to-eat food, up $5 to $43; meat, poultry, and fish up $3 to $27; and non-alcoholic beverages, up $2 to $10
• household contents and services – furniture and furnishings, down $4 to $12; and major household appliances, down $2 to $7.

 

In 2009/10, the housing and household utilities group was the largest component of household spending, making up one-quarter of total household expenditure (up from 22 percent in 2006/07). The next largest components are food (18 percent) and transport (13 percent). 

 

For those making rent payments, 33 percent made weekly payments over $300 in 2009/10, up from 22 percent in 2006/07.

 

Other survey results showed that average annual household income increased from $68,710 to $76,584 between 2006/07 and 2009/10, driven by increases in wages and salaries, other government benefits, and New Zealand Superannuation and war pensions.