LVR restrictions having small impact on Hamilton market
Long-term data proves LVR restrictions having small impact on Hamilton market
Hamilton, New Zealand – Lodge Real Estate’s managing director, Jeremy O’Rourke, said long-term data is showing the Reserve Bank’s loan-to-value (LVR) restrictions are not impacting residential housing prices in Hamilton as much as previously suspected.
This macro analysis was done by Lodge following the Real Estate Institute of New Zealand (REINZ) releasing April figures yesterday showing Hamilton’s median housing price sitting at $360,500.
“By analysing short-term data over the past few months, we were attributing the continued rise in the median to the lack of first home buyer activity in the bottom end of the market. With buyer activity being strong in the over-$400,000 end of the market, we continued to see the median creeping up over time.
“However, with the benefit of now being able to look back at market trends over the past six to nine months, at a macro level we’re now seeing LVR restrictions aren’t having as big of an impact as we once thought. In fact, although to a slightly lesser degree, first home buyers are still in the market in Hamilton.
“What the aggregate data is showing is more-so that these first-home buyers are shopping up and willing to pay for higher quality housing when they can access the capital,” explained Mr O’Rourke.
April’s median house price in Hamilton was $360,500, which was slightly down from $375,000 in March. However, with March traditionally being the strongest sales month of the year, the April median is up on February’s median of $350,000.