LVR starting to bite - Real Estate Institute
The Real Estate Institute says LVR restrictions starting to bit
The Real Estate Institute is claiming that tighter loan-to-value bank ratios dampened house sales in October.
Last week, Quotable Value said it was too early to tell.
Today the Real Estate Institute of New Zealand chief executive Helen O’Sullivan attributed muted sales to the new loan-to-value ratios.
Even so, the 6778 October sales were 0.9% ahead of September and 2.1% up on October last year.
Ms O’Sullivan says sales are lower than expected.
She says agents have reported increased uncertainty and she expects the full effect to become more obvious in coming months.
The national median price increased $7525 compared to September to $407,525, a new record median high.
Auckland accounted for 2681 sales, Christchurch 890, and Wellington 663.
According to QV’s recent report of average prices, the latest monthly property value index shows that nationwide residential values for October have increased 8.9% over the past year, and 2.7% over the past three months. This means they are now 10.4% above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 7.4% and values remain below the 2007 peak by 4.8%.
Chris Hutching
Tue, 12 Nov 2013
Tue, 12 Nov 2013
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LVR starting to bite - Real Estate Institute
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