“So, rather than the bottom end of the market plummeting since the loan:valuation ratio speed limits came on, activity has actually stayed stronger than long-term average and above the same time last year.”
What’s happening at the lower end of the market? CoreLogic research head Jonno Ingerson asked when Quotable Value Ltd issued its monthly index figures on Friday.
Mr Ingerson painted a picture to show the bottom of the market had risen, and was more active than a year ago, before it supposedly plummeted as a result of the Reserve Bank’s decision to impose loan:valuation ratio limits.
Un a blog comment, he wrote: “There has been some talk that the loan:valuation ratio speed limits have caused a dramatic drop in sales at the lower end of the market. It seemed to me that in the current rising market the actual number of properties worth less than, say $400,000, would be decreasing, so it should be no surprise that the number of sales would also drop.
9 June 2014