Once aspiring homeowners have raised their deposit and actually made a purchase, servicing the average mortgage is cheaper than it has been in the past. The problem, of course, is getting that deposit together in the first place – currently taking 8.6 years of saving, versus the average of 7.5.
The NZ property market is one of the most talked about topics right now. Open letters, debate, finger pointing, helpful suggestions – there’s no shortage of any of these things. And the latest CoreLogic House Price Index (HPI) is likely to only add fuel to the fire.
Mortgage lending flows remained very strong in October, with low-deposit investors again a key feature – reaffirming why the Reserve Bank (RBNZ) has jumped early with their plan to reinstate the loan to value ratio rules.
Our Q3 2020 Pain and Gain Report provides more evidence of a strong bounce-back in the residential property market, with profit-making resales increasing nationally to 96.8 per cent or a median national resale gain of $229,000.
It’s definitely been an interesting few weeks in the age-old debate about investors vs first home buyers and who might be preventing who from entering the property market.
Once you adjust population growth for the average size of a household, the change in the dwelling stock in both Selwyn and Christchurch over the past five years has been pretty much in line with what has been required.
Mortgage lending flows remained very strong in September, with the figure of $7.3bn almost $2bn higher than the same month last year.
The last time we produced this report, uncertainty about how the property market would emerge from lockdown was still high. Roll forward three months, and it’s been striking how quickly the situation has turned more positive.
The CoreLogic House Price Index (HPI) for October has found nationwide property value growth accelerated over the month, increasing 1.3% after already beginning to lift in September (0.8%).
There was no let-up in mortgage lending flows last month, with another $7.3bn of activity taking place – almost $2bn more than the same month last year.
A fair period of time has now passed since we all went back up the alert levels to different degrees in mid-August, and the incoming data shows that the property market has largely carried on unaffected.