Too early say the RBNZ’s lending restrictions on highly leveraged borrowers are having an impact yet

Managing director of Auckland real estate agent Barfoot & Thompson, Peter Thompson, says it is too early to say the Reserve Bank’s lending restrictions on highly leveraged borrowers are having an impact yet.

He cites:

• Fewer Auckland houses are selling at auction
• Total sales were down 7.1 %in November vs. October
• Houses worth less than $500,000 are selling more slowly

He is echoing the same comments from Grant Spencer (RBNZ Deputy Governor and Head of Financial Stability), who said in a late November speech that limits on LVR lending are having an impact, but too early to assess the impact of the restrictions on house prices.

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From the article citing Thompson:

• The new rules are expected to hit first home buyers hardest by restricting to 10 percent the total volume of a bank’s lending to borrowers with less than a 20 percent deposit on a house purchase.