This week the RBNZ announced an easing of the LVR ratios, raising the maximum amount which a bank can lend at less than 20% deposit from 10% to 15% for owner occupiers effective from June 1.
Banks tend to keep there books within a couple of percent of the limit, so at the moment that’s about 8%, which will increase to 13% which is a much larger percentage increase than 10-15% and essentially means banks can lend to two thirds (nearly) more first home buyers with low equity.
There will also be a slight easing in the minimum deposit required by investors from 40% to 35% but this is less likely to have much of an impact.
But what this “easing” does psychologically is potentially much greater as it indicates the RBNZ believe we are at or near the bottom of the market.
On top of this the latest inflation data is promising and interest rates are widely seen to be peaking.
Prices at the bottom, interest rates at the top, there is only one way to go from here. The question is how long will we stay here for first? And that is anybody’s guess.
However despite everything else brewing in the background that I touched on last week, when interest rates ease, prices will go up. So if you like to play the markets – now is probably the time to start looking to buy.
This Week’s Wrap
– The Short Story
– Listings & Stock Availability
– Auction Results
The Short Story
Stock levels are tightening, clearance rates are much the same and remain up and down from week to week. Good existing homes are still selling well, and for certain types of properties demand is definitely outstripping supply.
Listings & Stock Availability
As we enter the winter months you would expect supply to start dropping, we may see a wee surge these next few weeks post the holidays – but it seems unlikely that we will see any significant surge.
North Shore Stock Levels:
1380 on oneroof.co.nz – Last week 1398
1308 on TradeMe.co.nz – Last week 1323
1332 on realestate.co.nz – Last week 1358
Auction Results
Harcourts and Barfoots cleared 32% under the hammer this week slightly below the average 4 week rate. Well run auctions for good homes are still selling very well with multiple bidders.
This weeks combined rate: 32%
Combined 4 Week average: 36%
Combined 12 Week Average: 33%
That’s it from me, remember if you ever have any questions please just give me a call.
Have a great weekend!
Kris Cunningham & Team are all Licensed Sales People under the REAA 2008
FEATURE PROPERTIES
16 Macbeth Court, Milford
Prime Lakeside Section
For Sale: By Negotiation
Kris Cunningham & Co.
Leave a Comment