Century 21 stories
New Zealand’s housing market remained brisk in January despite a modest month-on-month price fall, with sales and auctions both at multi-year highs.
House prices are likely to cool after the Reserve Bank reinstated loan-to-value curbs from 1 March amid stability concerns.
Possible tighter rules could curb investor demand as mortgaged buyers regain a 27% share of the housing market, CoreLogic says.
Record shortages of homes for sale are fuelling the pressure, with New Zealand’s median house price climbing to a fresh high for the fourth month.
Home sellers using an agent are getting an average 15% more than private vendors, the biggest premium seen by REINZ in 18 years.
A shortage of homes for sale is fuelling record house prices and leaving buyers with fewer options, despite the busiest November in 13 years.
Only a third of New Zealand homes now qualify for the Home Start grant, intensifying calls to lift price caps before summer buying picks up.
Listings fell to record lows as buyers pushed Auckland’s median house price to GBP £1 million and nationwide sales hit a 14-year October high.
Record-low rates have lifted first home buyers to a 25% market share, but reimposed lending curbs could force many out again.
Lower migration losses are still propping up housing demand, though CoreLogic says border closures will eventually curb population growth.
Record house prices and strong sales are fuelling doubts over Treasury’s forecast of a 5% fall by June next year.
Pent-up demand is expected to lift sales as Aucklanders return to the market after nearly three weeks in lockdown.
House prices and sales could weaken in September unless the Government extends mortgage deferrals as the wage subsidy ends and election looms.
House prices and sales have climbed to four-year highs in New Zealand, despite earlier fears of a post-COVID downturn.
Sales momentum remains firm in Auckland, with first-home buyers and investors still active despite claims the city has tipped into a buyers’ market.
Lower deposit rules and weak bank returns are drawing small investors into housing, helping keep prices elevated across New Zealand.
Property sales jumped in May as lockdown eased, but volumes remained 46.6% below a year earlier and days to sell hit record highs.
Lower deposits and record-low borrowing costs are giving first-home buyers their strongest opening in more than a decade this winter.
With mortgage rules easing, the Government is being urged to soften New Zealand's foreign buyer ban to help revive property sales and investment.
First-home buyers could face lower deposit hurdles as the Reserve Bank weighs scrapping mortgage loan-to-value rules for a year.
