What's happening in the market right NOW
Read Here
News

REINZ not surprised Reserve Bank kept LVRs on hold

By Alison Borland

Article supplied by REINZ, 27th November 2019

Bindi Norwell, Chief Executive of REINZ says “Today’s announcement from the Reserve Bank of New Zealand to keep LVRs at their current level was not surprising. All the data we’ve analysed over the past 12 months has shown that house prices have risen significantly across most parts of the country. In many towns and cities record median prices are being recorded, so to ease restrictions could create an uplift in the market that would be unsustainable in the long term.

“Additionally, all the data points to this uplift in prices continuing, with predictions of around 4% house price rises per annum for the next few years. A stable market is good for everyone, and we think keeping LVRs in their current position is a prudent approach by the Reserve Bank,” continues Norwell.

“While lending to first time buyers is up on the same time last year (lending increased 12.2% when comparing the first 9 months of 2019 to the first 9 months of 2018), there is still an argument that saving the 20% deposit is difficult for many people looking to get in to the property market and therefore we would like to see first time buyers considered in the future. For example, Auckland has a median house price of $868,000 which requires a 20% deposit of $173,600. This is out of reach for many households and so some easing of this requirement would be welcomed,”

Up to Date

Latest News

  • Median House Price in Auckland reaches a new high

    Article supplied by REINZ Auckland’s median house price increased by 18.5% from $945,000 in March 2020 to $1,120,000 in March 2021 – a new record for Auckland. Additionally, Auckland City, Manukau City, North Shore City, Papakura District and Rodney District all reached new record median highs. Wendy Alexander, Acting Chief Executive … Read more

    Read Full Post

  • NZ remains buoyant throughout the summer holidays

    Article supplied by REINZ Despite most New Zealanders taking a summer holiday in January, the housing market was busier and more buoyant than we would usually see at this time of the year, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the … Read more

    Read Full Post