First home buyers flee market
First home buyers have fled the market
First home buyers have fled the market, according to the latest BNZ-Real Estate Instiute survey.
“Our survey results this month show that the residential real estate market in New Zealand is taking quite a hit from the introduction of credit controls but that it is aspiring first home buyers wanting to place roots down in New Zealand who are suffering,” BNZ economist Tony Alexander says.
The introduction of credit controls on lending to people with deposits below 20% of a house’s value has resulted in a net 78% of the 250 licensed real estate agents replying to this month’s survey saying that they are seeing fewer first home buyers than in the previous month.
The result a month ago was a net 41% seeing fewer and in September before the rules became effective a net 24% of agents were seeing more.
“But are the changes achieving the Reserve Bank’s desire of limiting price rises?” Mr Alexander asks.
“Only marginally. A net 23% of agents feel that house prices are rising compared with 41% in October and 51% in September.
“More tellingly, a net 17% of agents now feel that it is a buyer’s market with sellers more motivated to transact than buyers. Last month a net 11% felt it was a seller’s market and in September a net 30% felt that way.
Chris Hutching
Thu, 14 Nov 2013
Thu, 14 Nov 2013
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First home buyers flee market
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