Taupo houses keep go­ing up

Taupo Times - - YOUR LOCAL NEWS - ROBERT STEVEN

‘‘The me­dian price of homes sold the Taupo District was $422,000 in July 2017.’’ REINZ statis­tics

Taupo’s me­dian house prices con­tin­ues to rise year-on-year, even though Auck­land has ex­pe­ri­enced a slow­down.

The rise comes de­spite a drop in sales vol­ume on 2016.

The me­dian price of homes sold the Taupo District was $422,000 in July 2017, ac­cord­ing to data from the Real Es­tate In­sti­tute of New Zealand.

This is a $61,000 in­crease [17 per cent] on the me­dian sale price [$361,000] in July 2016.

The REINZ House Price In­dex is based on sale prices re­ported by real es­tate agents.

The Auck­land re­gion’s me­dian price in July 2017 de­creased slightly from $840,000 in July 2016 to $830,000 – a 1.2 per cent year-onyear de­crease.

While prices rose in Taupo, the vol­ume of prop­er­ties be­ing sold de­creased by more than a quar­ter.

In July 2016, 96 houses were sold in the Taupo District. By the end of July 2017, only 67 houses were sold – a 29 per cent de­crease.

REINZ Re­gional Di­rec­tor Philip Searle said the Waikato mar­ket was rel­a­tively tight, with lim­ited sup­ply.

‘‘Con­fi­dence in the re­gion re­mains high and we’re still see­ing a large num­ber of out of town buy­ers, how­ever, the num­ber of in­vestors has de­clined due to a tight­en­ing of bank lend­ing,’’ he said.

Taupo’s sales vol­ume fig­ures com­pare to na­tional fig­ures, which saw a 24 per cent de­crease in vol­umes sold na­tion­wide from 7251 prop­er­ties to 5475 prop­er­ties.

REINZ chief ex­ec­u­tive Bindi Nor­well was crit­i­cal of the gov­ern­ment’s loan-to-value ra­tio re­stric­tions [LVR], which came into place in Oc­to­ber 2016, say­ing they cre­ated an ‘‘in­tim­i­dat­ing bar­rier’’ to first home buy­ers.

The two ‘‘big­gest hur­dles’’ to pur­chas­ing a house now were LVR re­stric­tions and ac­cess to fi­nance, as banks con­tinue to tighten their lend­ing cri­te­ria, she said.

‘‘This cre­ates an in­tim­i­dat­ing bar­rier to en­try to the real es­tate mar­ket, par­tic­u­larly for those sav­ing for their first home.

Nor­well said LVR re­stric­tions on first-home buy­ers should be eased, she said.

‘‘The LVR re­stric­tions have done their job of slow­ing the mar­ket, but now it seems they are act­ing as a hand­brake which is why REINZ is call­ing for LVRs to be re­viewed for first-time buy­ers.’’

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