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.
- 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.
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.