Auckland’s housing market slowed in the last three months with property values falling by 0.6% – buyers unable to get finance being blamed.
Reserve Bank lending data showed banks loaned $6.1b in August to property buyers throughout New Zealand. That had fallen to $5.1b by last month and was $4.8b in July. January was quietest with $3.5b of property lending.
The QV House Price Index showed Auckland values only rose 0.8% in the last 12 months – the slowest pace of annual growth since April 2011.
Despite the drop, the average current value now stands at $1,039,066 – putting most houses out of the reach of first-home buyers.
QV’s data showed Auckland’s value slump was widespread.
QV Auckland senior consultant, James Steele, said sales volumes were down to very low levels because demand was halted “by the ability for purchasers to finance property deals. The number of listings has also eased as there is little pressure at the moment for home owners to sell, as rents remain high and interest rates low, and a number of vendors and purchasers are taking a ‘wait and see’ approach until after a new government is formed.”
Last month, QV blamed winter, bank lending limits, the election and China’s crackdown on capital flows for national house value growth being the slowest in five years and Auckland values hitting their most glacial pace since 2011.
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