Record prices but LVR’S slow sales
Auckland and central Otago’s housing markets paused for breath but the rest of the country is in fine form.
Economists believe the latest round of mortgage restrictions is having a dampening effect on house sales, even though prices in many areas have hit new highs.
Stricter LVRS or loan-to-value ratios appeared to be the reason why sales growth in Auckland and Wellington remained weak, ASB economist Kim Mundy said.
‘‘We expect to see activity remain subdued over the rest of the year,’’ he said.
More houses were also creeping onto the market, meaning ‘‘less upward pressure on house prices in the coming months‘‘, Mundy said.
Wellington’s median price in the region hit half a million dollars for the first time, 15 per cent higher than last year.
REINZ’S Wellington director Mark Coffey said a flattening out of sales in the last month was likely due to the quake and a falloff in investors since the LVR rules were tightened.
‘‘The big question for the market
‘‘We expect to see activity remain subdued over the rest of the year ... less upward pressure on house prices in the coming months.’’ Kim Mundy
is the impact of the Kaikoura earthquake and the flow on effect for insurance,’’ he said.
‘‘The market may be a little subdued over the next few months as insurance and other post-quake issues are worked through.’’
Northland, $399.500 (a record, up 19 per cent)
Auckland $851,944, (up 11.4 per cent)
Waikato/bop $470,000 record, up 20 per cent)
Taranaki $358,500 (a record, up 20 per cent)
Manawatu $269,000 (a record, up 18 per cent)
Hawkes Bay, $345,000 (a record, up 15 per cent) (a
Wellington, $500,000 (a record, up 15 per cent)
Nelson/tasman, $466,000 (a record, up 24.3 per cent)
Canterbury/westland, $440,000 (up 5 per cent)
Central Otago/lakes $635,500, (up 32 per cent)
Otago, $300,000 (a record, up 8 per cent)
Southland, $225,000 (a record, up 15 per cent)
The Auckland housing market is slowing but other areas are still steaming.