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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news