What matters is that the statistics demonstrate that the market still has strength.
It is only natural that after the solid rises over the last 18 months or so, that there would need to be a “breather” but I doubt if the LVR rules have much to do with it.
The prices of anything in all free markets ( sort of) such as the property market, do not go up or down in straight lines, but in a series up and down steps.
Up, breather, up again, breather down, breather, up again, breather down etc etc.
It’s the trend that matters and it looks much like the trend is gently settling into a breather stage
which is good news.
Because it’s the best time to snap up those bargains ready for the next inevitable upward phase.
New Zealand property values increased at the slowest annual pace in six months in March as lower Christchurch valuations, high-debt lending restrictions and interest rate hikes weighed on the market.
House values rose at an 8.8 per cent annual pace in March, the slowest annual gain since September when values rose 8.4 per cent, according to state agency Quotable Value. Residential values rose 0.1 per cent in the past three months, down from a 1.8 per cent pace in the three months through February, as they were dented by a 1.5 per cent decline in Christchurch values.