Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Auckland house sales plunge 24% in April

Auckland house sales plunge 24% in April as interest rates rise, loan restrictions weigh

May 5 (BusinessDesk) - Auckland house sales dropped by almost a quarter in April from a year earlier as rising interest rates and restrictions on low-deposit mortgage lending weigh on demand, according to Barfoot & Thompson, the city’s biggest realtor.

Sales dropped to 811 in April from 1,062 a year earlier, and were down from 1,392 in March. The average sale price dropped to $708,603 from $725,708 in March, but was still up from $643,089 in 2013. The median sale price fell to $619,550 from $652,000 in March, and was up from $566,000 in 2013. Listings increased to 3,623 in April from 3,570 in March, and were up from 3,467 a year earlier.

“It shows ongoing support in the Auckland property market, but more listings creates more choice, and that ultimately softens prices,” managing director Peter Thompson said in a statement. “Undoubtedly the loan-to-value ratio and interest rates were also keeping prices in check.”

Auckland’s property market has been a bugbear for the Reserve Bank as prices accelerated in the face of a supply shortage, and prompted the introduction of restrictions on low-equity home lending as a means to cool the sector.

The restrictions have had a greater impact on first-home buyers and caused a drop-off in cheaper housing.

Barfoot said about 37 percent of sales were below $500,000, and sales of $1 million homes rose to 120 from 103 a year earlier.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news