Housing activity still slowing

Press, 23 June 1978, Page 3

Housing activity still slowing

Wellington reporter More New Zealanders are . now having to pay nearer > the true cost of housing, according to the annual report •of the National Housing 'Commission. The last year had been ' characterised by a continued slowing down of all 1 activity in housing, the report said. Sales of houses had continued to decline and [the demand for new houses I had showed an even more : rapid downturn than the previous year. The cost of servicing [loans, the increasing gap between deposit and purchase price, together with ihe fall in real incomes, meant that people were now less willing to commit themselves to paying a substantial proportion of thefr in-

come to achieve horn* , ownership, the commission ’ said Those who already owned j a house seemed unwilling to , move, mainly through the ' difficulties in selling and the 1 increased cost of financing a ‘ new house. I The increasing numbei of ' permits issued for additions ’ and alterations showed that J people were adapting their . existing dwelling to cater for family requirement* . rather than shift to a new house. > This unwillingness re- , fleeted a slowdown in inter,'nal migration, the commis- ! sion said. People were less willing • than previously to take up ■ employment promotions [where transfers were in •'volved.