Property sales slow across New Zealand
Property sales volumes have slowed noticeably across New Zealand, likely a result of a combination of factors: the latest loan-to-value restrictions, tougher lending criteria from banks, and the usual slump in sales over the winter period.
According to property listings website realestate.co.nz, the number of houses for sale nationwide in May 2017 was up 50.8 per cent on the previous year. In Auckland, house sales dropped 31 per cent for the first quarter of 2017 compared to the same time last year, while property hot spots Hamilton and Tauranga experienced a similar slowdown in house sales, down about a quarter year on year.
While record sales prices are still being achieved for well-positioned and well-maintained properties, many sellers are having to settle for a lower price than what they might have achieved this time last year, or are simply withdrawing properties from the market if they don’t achieve the price they’re wanting.
House price growth slowing
Despite a record number of new listings and the highest total listings in 5 years, house price growth continues to rise, albeit at its slowest annual rate in two years according to the latest monthly QV House Price Index.
Nationwide value growth eased back to just 0.4 per cent in the first quarter of 2017, pushing the nationwide average value up to $634,018. Auckland house prices saw its slowest annual rate of growth since November 2014 at 9.3 per cent year on year, with the average value for the Auckland region now sitting at $1,044,561.
In its May Financial Stability Report, Reserve Bank Governor, Graeme Wheeler, said New Zealand’s financial system is in a good place, but that he was concerned about a potential resurgence in house price growth. While growth has slowed in response to tighter LVR restrictions and a tightening in credit, said Wheeler, residential building activity remains insufficient to meet the rapid population growth and existing housing shortage.
Economists predict the Reserve Bank will begin lifting its OCR in mid-2018, and the Reserve Bank is set to release a consultation paper proposing the addition of debt-to-income restrictions to its macro-prudential toolkit.
Mortgage Express May Results
Top Advisers by Total Settled Loan $ for May 2017
Top Harcourts Franchises by Settled Loan Units for May 2017
Grenadier Real Estate
Holmwood Real Estate
Twiss Keir Realty
Cooper & Co Real Estate
Team Group Realty Ltd
Top Harcourts Referrers by Settled Loan Units for May 2017
Anna Peacock – Wellington City
Geoff Smith – Christchurch City
Tracey O’Brien – Hillcrest
Kyle Siebert – Ilam2
Corina Grey - Ilam