Head of Auckland’s biggest real estate firm believes RBNZ clamps on low equity mortgage lending will make housing more affordable
September 5, 2013
The head of Auckland’s largest real estate firm believes that “speed limits” on high loan to value (LVR) lending are likely to have a positive impact on the housing market.
Managing director of Barfoot & Thompson Peter Thompson told interest.co.nz the limits, coming into effect on October 1 – were “going to be a great thing” for affordability. See here for articles on LVRs.
Thompson, whose firm accounts for about 40% of Auckland house sales thinks LVRs will be good for affordability “because it is not so much about the price – it’s about people’s expectations”.
“And if they can’t borrow as much as they would really like to live in the dream area they are going to have to move to a slightly less suburb that they can afford with a slightly less mortgage.
“And I think that over a period of 12 months – it’s not going to happen straight away – I think you will start to see prices come back to make it more affordable, and that’s got to be good for everybody.”
The LVRs were likely to “make people be able to afford what
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