Ak Housing market takes mortgage changes in its stride
October 3, 2013
Housing market takes impending mortgage changes in its stride in Auckland
The impending introduction of Reserve Bank restrictions on home mortgage lending had no measurable impact on Auckland house values in September.
“Prices continued to rise steadily and modestly in September in much the same manner as they have since March of this year,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“In September the median sales price hit $600,000, an increase of $38,500 or 6.9 percent on that for August, while the average sales price in the month at $657,912 was an increase of a little more than $10,000 or 1.6 percent.
“While both the median and average price are the highest they have ever been, the rate of change in September was in keeping with what has been occurring for the past 7 months.
“The number of sales in September at 1105 was down 7.9 percent on that for August, but up 14 percent on that for the same month last year.
“Month by month variations in sales numbers are common, and if the Reserve Bank’s new regime was to have had an impact, I would have expected more rather than less sales in September as buyers sought to get in ahead of the new deposit requirements.
“New listings at 1636 for the month were excellent, and while down 4.3 percent on those for August were up 29.2 percent on those for the same month last year.
“At month’s end we had 3191 listings on our books, our highest number since April, but still down 14.5 percent on the number in September last year.”
During the month Barfoot & Thompson sold 379 homes for less than $500,00; 384 for between $500,001 and $750,000; and 150 for in excess of $1 million.
Mr Thompson said it could be between 3 and 6 months before it would be possible to judge whether the mortgage changes introduced from October 1 will have any medium term impact on prices or sales turnover.
“The school holidays will occupy the first part of October, and this always has an impact on listings and sales.
“It may well take to the end of November or year end before a clear picture of what impact, if any, the new requirements have on market activity and prices.”