If the LVR rules are really that successful how come house prices have reached a new record?
29 April 2014
The results of the Reserve Bank’s loan-to-value ratio (LVR) experiment are officially in and the mortgage lending restrictions have been deemed a success.
The new rules, aimed at taking the heat out of the housing market and avoiding a build-up of risk, were introduced in October.
Banks were given a six month window to comply with ”speed limits” capping new high-LVR lending at no more than 10 per cent of their total lending.
A high-LVR loan is defined as borrowing more than 80 per cent of the value of the property being used as security.
Today the Reserve Bank released the final figures to the end of March, revealing high-LVR loans had fallen to just 5.6 per cent.
Auckland’s average house-sale price reaches a record $697,454
Apr 11, 2014
The proportion of first-home buyers in the market has declined in most centres.
First-home buyers may be squeezed out but property prices in Auckland remain high as one agency reports record average sale prices.
March residential data from Harcourts for Auckland and Northland shows its average sales price now sits at a record high of $697,454.
That is up 12 per cent on the same time last year and 9 per cent on February’s figures.