News | Business
20 Aug 2017 23:45
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • News
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    REINZ calls for looser LVR rules

    The Real Estate Institute wants first-home buyers carved out from mortgage lending restrictions in the face of shrinking sales numbers.

    11 August 2017

    The Real Estate Institute wants first-home buyers carved out from mortgage lending restrictions in the face of shrinking house sales numbers.

    The REINZ house price index was unchanged in July from a month earlier and was up 1.2 per cent from July 2016, the real estate agents group said.

    Excluding Auckland, house prices rose 7.5 per cent from a year earlier, while in Auckland they were 2.1 per cent lower.

    Nationwide sales volumes dropped 25 per cent last month compared to July 2016, with Waikato sales dropping 32 per cent and Auckland sales down 31 per cent.

    The national median house price increased 3.4 per cent to $518,000 in July from last year, while the median number of days it took to sell a home rose to 35 days from 31 days.

    Record migration and low interest rates have bolstered the country's housing market, prompting the central bank to clamp down on the level of high loan-to-value ratio mortgages in an effort to reduce the risk to the nation's financial stability.

    In Auckland, the country's largest city where rising prices have made housing unaffordable for many, the median sales price dipped an annual 1.2 per cent to $830,000, although REINZ chief executive Bindi Norwell said the city would "likely to be protected from significant price decreases in the short term" due to the housing shortage and population growth.

    "The number of sales across New Zealand has dropped significantly in comparison to the same time last year," she said.

    "A key reason for this is that the two biggest hurdles to purchasing a house right now are access to finance as the banks continue to tighten their lending criteria and LVR restrictions."

    This created an "intimidating barrier to entry", particularly for those trying to save for their first home, she said.

    "The LVR restrictions have done their job of slowing the market, but now it seems they are acting as a handbrake which is why REINZ is calling for LVRs to be reviewed for first time buyers."

    Nationwide, more houses moved into the $500,000-to-$750,000 price bracket, with 27 per cent sold for that in July, compared to 24 per cent last year.

    Fewer were sold for less than $500,000, at 47.8 per cent compared to 49.4 per cent a year earlier, and the proportion of houses selling for over $1 million dropped to 12.9 per cent from 13.8 per cent last July.


    NZN




    © 2017 NZN, NZCity


     Other Business News
     20 Aug: NZ should renegotiate TPP now: Robertson
     19 Aug: Board asks for more money in dieback fight
     18 Aug: Yemen: UN calls for Saudi-led coalition to ease blockade of main airport to allow aid in
     18 Aug: Barcelona: Counter-terrorism strategies can't save us from the horror of vehicle attacks
     18 Aug: CBL shares fall 12pc as profit dented
     18 Aug: Steel & Tube annual profit drops 22pc
     18 Aug: Spark profit up as it embraces wireless
     Top Stories

    RUGBY RUGBY
    Colin Meads, New Zealand rugby union legend, dies aged 81 More...


    BUSINESS BUSINESS
    NZ should renegotiate TPP now: Robertson More...



     Today's News

    International:
    North Korea receiving constant oil supply as China refuses to go all in on isolating rogue state 22:47

    Auckland:
    Slip undermines Auckland home 21:57

    Motoring:
    Man dies in hospital days after crash 21:17

    Accident and Emergency:
    Fatal crash on Napier to Taupo road 20:37

    Law and Order:
    Tongariro search to continue 20:37

    Rugby League:
    Rooster JWH escapes NRL ban for elbow 18:57

    Rugby League:
    Hoffman no certainty for Melbourne goodbye 18:37

    Accident and Emergency:
    Fire in Hastings warehouse suspicious 18:07

    Law and Order:
    Drug use in South Africa takes dangerous turn as addicts share blood in 'Bluetooth' trend 17:37

    Accident and Emergency:
    Boy is flown to hospital with burns 17:27


     News Search






    Power Search


    © 2017 New Zealand City Ltd