Lending rules spur “mini-crash”
By Susan Edmunds
Sunday Mar 30, 2014
Photo / Doug Sherring
(Maybe using the cheap Homesell method isn’t the best way to move a sticky property. See photo.)
Andy Morrison hopes for inquiries at $579,000 or more.
Tough new mortgage lending rules have seen house prices dip in suburbs that usually appeal to first-time buyers. But that means bargain prices for investors and those with big deposits.
Property consultant Matthew Gilligan said there had been a “mini crash” in South Auckland, and other cheaper areas would also be affected.
CoreLogic statistics show that since the introduction of new loan-to-value-ratio lending rules in October, first-home buyers have dropped out of many parts of Auckland where they used to dominate.