QV on LVR restrictions: effects not showing up yet

Click to read QV's article: 'Too early to assess the impact of LVR caps'

Quotable Value reports continued solid growth in the market (Auckland and Canterbury setting the pace) but they say the real, potentially “considerable”, impact of the Reserve Bank’s LVR restrictions is still “some months” from making itself felt …

Jonno Ingerson, QV.co.nz Research Director said “As has been the case for some time, current nationwide value increases are largely driven by Auckland and Canterbury. Most of the rest of the main centres are also increasing but at a slower rate. In contrast, many of the provincial and rural areas have declined in value.

“The recently introduced LVR caps have the potential to have a considerable impact on the market. By limiting lending to buyers with a low deposit this will cause those people to reconsider their options. Some will choose to hold off and save more, some will find other sources of money to boost their deposit, and others will lower their price expectations. It will take some months before any evidence of this becomes clear.”

“The impact of the LVR caps will be particularly felt by first home buyers. If a significant number of these first home buyers drop out of the market then volume and values will be affected.”

Read at QV online: Too early to assess the impact of LVR caps

Posted in News & Articles | Leave a reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>