On the day Auckland house prices have hit an average of $1 million, the Government’s announced a $25m boost to funding for the city’s social housing.
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As expected, the QV average value for Auckland topped $1 million for the first time.
“There was a strong surge of activity in June and July however it now appears the new LVR restrictions for investors adopted by banks towards the end of July have started to have an impact in the housing markets in Auckland, Tauranga and Hamilton during August”.
On Monday it reiterated it was raising deposit requirements for residential property investors to take some of the heat out of the housing market.
The funding is a top-up to the $120m in the 2016 budget for Auckland social housing.
Although average house prices have reached a new milestone, QV national spokesperson Andrea Rush said there is indications activity may be cooling.
Mr Barnett says his company is looking forward to another strong summer helped by solid population growth, an ongoing shortage of homes, record low interest rates, and healthy levels of consumer and business confidence.
“In recent weeks there has been a drop off in market valuation requests, auction clearance rates, open home attendees and loan application rates in these centres”, she says.
In the Wellington region, values rose 17 percent in the year to an average $536,065.
Prices were up 6 percent in the past 3 months, while Auckland house prices rose +15.9 percent y/y and +6.1 percent in the past 3 months.
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“There is a shortage of properties listed for sale in the market which is resulting in fewer sales and anecdotally, listings are around 30 percent lower than they were this time previous year”, valuer Damian Kennedy said. “Investors may also be waiting to see if the market picks up again now that the rate of growth has slowed from what it was in the first three years after the earthquakes”.
