Housing affordability has fallen back to its long-term average, following the big spike in prices seen during the Covid-19 pandemic.

New figures from Cotality show the national value-to-income ratio fell to 6.7 in the second quarter of this year, matching the long-term average between 2004 and 2026.

At its peak in 2021, national house values were about 9.8 times income.

Cotality said several years of lower property prices, easing mortgage rates and rising household incomes had driven the improvement in affordability.

The combination of those factors meant that while housing was not necessarily cheap, affordability was no longer the significant barrier it had been, Cotality NZ chief property economist Kelvin Davidson said.

Mortgage repayments required to service a new loan also fell to 40 percent of gross household income, below the long-term average of 42 percent and substantially lower than the 54 percent peak recorded in late 2021.

Earlier this month, Cotality revealed thousands of homes were selling for less than what the seller paid for them.

Across the country 13.1 percent of properties sold in the second quarter were at a loss, the highest number since 2012.

In Auckland, the proportion was 20.9 percent and in Wellington it was 18.4 percent.

Apartments were much more likely to be sold for a loss, at 45.4 percent. It was the weakest resale performance for apartments since 2010.