Taupo houses keep going up
‘‘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.’’