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Property prices 20 percent above CV

Figures released to the NZ Herald from PropertyIQ show homes in Auckland are selling on average at more than 20 percent above the Capital Value set by council.  National house price inflation was running at 8.7% for the 12 months up to May 2013, and the figure was nearly 15% in Auckland.

Meanwhile, fixed mortgage rates are rising with several banks including BNZ,  Kiwibank, and Westpac lifting their mortgage rates.

Source: Interest.co.nz

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Home Loan speed limits being considered.

Auckland’s property market is in the firing line of the Reserve Bank who are considering imposing ‘speed’ limits.  These would restrict how much of a bank’s total lending can be for low deposit home loans, and is a bid to cool the market.

The move is designed to avoid having a large number of borrowers with negative equity in their homes (ie they owe more than the property is worth), as was seen in the US after the global financial crisis. 

The Reserve Bank is consulting with banks, and it will be at least August before such an initiative would be launched.

Source and full story: NZ Herald

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