LVR Restrictions May Soon Be Gone...
Direct from the Harcourts CEO Hayden Duncan - Last week the Reserve Bank announced loan-to-value restrictions may be reaching the end of their useful lifespan, with an end date signalled for later this year.
This is welcome news for provincial New Zealand, where the restrictions have had a significant impact on an already weak market. In the Central, Wellington and South Island Provincial regions average sale prices remain in the $300,000s and have done so for a number of years. LVR restrictions were not needed here and have prevented first home buyers achieving the dream of home ownership.
In Auckland and Christchurch the overheated markets are the result of simple low supply and high demand. Harcourts advocates fast tracked and quality construction in these two cities as the best way to sensibly moderate rising costs.
Sales soar despite continued tightening of available homes for sale. The talking point of most is Auckland’s hot property market and the lack of listings, this month at 22.4% below this time last year. New auctions are up by 21.2%, the second highest recorded level, showing sellers are continuing to take advantage of the multiple-bidder environments on auction day. Read more here.