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It could take months to see LVR impact: Agency

It could be up to six months before it’s clear whether the Reserve Bank’s new loan-to-value speed limits have made any difference to the Auckland property market, says real estate agency Barfoot and Thompson.

Managing director Peter Thompson said there was no noticeable change in activity in September.

The agency's median and average prices are now the highest they have ever been but he said the rate of change in September was consistent with the previous seven months.

“Prices continued to rise steadily and modestly in September in much the same manner as they have since March of this year… the median sales price hit $600,000, an increase of $38,500 or 6.9% on that for August, while the average sales price in the month at $657,912 was an increase of a little more than $10,000 or 1.6%.”

The 1105 sales in September were down 7.9% on August, but up 14% on the same month the year before.

Thompson said: “Month-by-month variations in sales numbers are common, and if the Reserve Bank’s new regime was to have had an impact, I would have expected more rather than less sales in September as buyers sought to get in ahead of the new deposit requirements”

Barfoot and Thompson listed 1636 new properties in September, almost 30% more than the same time a year before.

“New listings at 1636 for the month were excellent, and while down 4.3%  on those for August were up 29.2% on those for the same month last year.

“At month’s end we had 3191 listings on our books, our highest number since April, but still down 14.5% on the number in September last year.”

Thompson said it could be between three and six months before it would be possible to judge whether the mortgage changes introduced from October 1 would affect prices or sales turnover.

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