LVR Restrictions: Are They Affecting the Housing Market in Manukau?
People ask me has or how have the LVR restrictions affected the property market, are you seeing a drop in numbers or sales via auction? Well, the latest from the Harcourts market watch reports that the average house in New Zealand now sells for $502,306, which is a record high, up 12% this time last year and 8% since the LVR restrictions were introduced. In Auckland and Christchurch the restrictions and rising interest rates are having little effect on the market, with high demand and competition countering any moderating influence of the Reserve Bank.There is still massive pressure on the housing market in Auckland and Northland, with the average sales price now sitting at a record high of $697,454.It is very evident buyers are no longer hesitating about entering the market, despite LVR restrictions and rising interest rates.
There is an understanding that the market is likely to remain heated and prices will continue to rise for some time yet, as our growing population is not yet adequately catered for with new housing construction. Across the Northern Region, and particularly in Auckland, there is fierce competition in the auction rooms. In Auckland almost half of all properties are now sold at auction and this figure is likely to keep rising.Our office reported a 93% selling success rate for auctions from the financial year. To date this year, the homes I took to auction have all sold at auction on the day or shortly after.
You can read more on the current market here: http://unconditional.co.nz/blog/property-report-march-14/