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

 


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.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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