The average days to sell your house in Auckland is currently 30 days compared to nationally 31 days and it seems that Auckland remains steady during these winter months.
The question on everyone’s lips is just how high can it go? Will the bubble burst or is there no bubble?
Some argue that foreign buyers competing for properties are pushing the housing prices up and others say when compared to the rest of the world, New Zealand’s real estate is cheap by comparison.
With elections looming next year the question is… Is New Zealand becoming too bitterly divided in opinions when it comes to New Zealand’s Property or are we just seeing the tip of the iceberg?
The Real Estate Institute of New Zealand (REINZ) spokesperson Bryan Thomson says, “Although the onset of winter means that June is generally a quieter month for the real estate market, there has been no let-up in the rate of price increases across the country, with five regions recording new record median prices. According to the REINZ the new Median price in Auckland is now reaching $821,000 - up from $755,000; that is an increase of 8.7% when compared to this time last year, and Auckland is still representing the majority of transactions “sold by Auction” nationally with 62% this is a significant drop from this time last year, which was 76% in June 2015.
So what’s new in real estate?
The Reserve Bank released a consultation paper on the 19th of July, proposing changes to loan-to-value restrictions (LVRs) to further mitigate risks to financial stability arising from the current boom in house prices. The proposed new restrictions will take effect on 1st of September 2016 and simplify the LVR policy by removing the current distinction between lending in Auckland and the rest of the country.
Under the proposed new restrictions:
No more than 5 percent of bank lending to residential property investors across New Zealand would be permitted with an LVR of greater than 60 percent (i.e. a deposit of less than 40 percent).
No more than 10 percent of lending to owner-occupiers across New Zealand would be permitted with an LVR of greater than 80 percent (i.e. a deposit of less than 20 percent).
Loans that are exempt from the existing LVR restrictions, including loans to construct new dwellings, would continue to be exempt.
The banking system is heavily exposed to the property market,with residential mortgages making up 55 percent of banking system assets. Investor lending has been increasing rapidly and is a significant contributing factor to the current market strength. The proposed restrictions recognise the higher risks associated with such lending,” Governor Graeme Wheeler said.
Are you thinking of selling your home?
Are you preparing your house to bring to the market?
Do you need some advice?
Call Angela Johnson Today.
Email: Angela.Johnson@raywhite.com Phone: 021 107 6637.
Bringing you a Ray of Light from Angela Johnson at RAY WHITE.
