Home loans stories
Investor demand is set to ease as tax changes and tighter lending curbs threaten to cool the market, though prices are still rising fast.
Average household incomes rose just 1.3% last quarter, leaving New Zealand house prices at their least affordable level since records began in 2004.
House prices are likely to cool after the Reserve Bank reinstated loan-to-value curbs from 1 March amid stability concerns.
New Zealand home values rose 2.2% in January as tight supply and low rates drove a rebound in Christchurch, Auckland and Queenstown.
House prices could surge 30 per cent in three years unless regulators curb lending as ultra-low rates fuel debt and investor demand.
House buyers and investors face tighter mortgage rules from 1 March as the Reserve Bank warns high-LVR lending is rising again.
New Zealand’s housing boom lifted values in almost every main centre, with Auckland now boasting 117 suburbs above the NZD $1 million mark.
Nationwide house prices climbed 1.3% in October as low rates and scarce listings kept demand ahead of supply.
Tighter lending criteria and renewed virus restrictions are likely to cool mortgage demand after July’s NZD $6.6 billion peak.
Property activity is likely to soften as recession, rising unemployment and a spring listings surge test demand in coming months.
House prices and sales have climbed to four-year highs in New Zealand, despite earlier fears of a post-COVID downturn.
Property values have already slipped nationwide, with tourism-dependent centres like Queenstown hardest hit as the recession starts to bite.
First-home buyers could face lower deposit hurdles as the Reserve Bank weighs scrapping mortgage loan-to-value rules for a year.
Lower borrowing costs are expected to bolster New Zealand property demand, with record-low interest rates giving buyers greater certainty and confidence.
New Zealand home values kept climbing in February, lifting the average house to NZD $722,475 and worsening affordability for buyers.
Demand for affordable Auckland townhouses is squeezing supply, as first-home buyers snap up projects off the plans before building begins.
Auckland's housing recovery is gathering pace, with low rates and tight listings expected to push prices higher in 2020.
House price growth is expected to remain modest as easing lending conditions and strong migration support demand, but listings stay tight.
Looser deposit rules and bigger grants could help tenants buy sooner as Government-backed schemes are made more accessible.
Widening the KiwiSaver HomeStart grants could help more first-home buyers bridge soaring deposits as rents climb and rates stay low.
