- 1 June, 2014
- COASTAL, RURAL/LIFESTYLE, RESIDENTIAL
- LVR, Market
It appears it has backfired with many provincial towns and banks not seeing a lot of active first home buyers in the market, and listings in the lower price bracket starting to mount up.
The reserve bank will obviously keep watch on it’s options around the LVR, with talks of changes later in the year.
Many people who have been using the capital gain over the past 18 months to top up their mortgage and get rid of some personal debt may find prices are not climbing at the same rate as in the past.
Some home owners will look to trade down to free up capital as many families are struggling to cope with the cost of living, and household debt building again from an already high 140% of disposable household income.
Less people will be leaving for Australia with the pendulum now swung as more expats will be returning from Australia coupled with numbers of new immigrants mostly settling in the Auckland region.
Older debt free home owners are also recognising that there are great opportunities to purchase a very nice home outside of Auckland, for example Tauranga, Rotorua, Matamata, Warkworth, Whangarei and have a few hundred thousand in the bank, and not struggle to pay rates and insurance. This trend will continue.
There certainly won’t be an oversupply of listings available in any area of Auckland or price range over the winter or even spring, as there will be more buyers sitting on the fence waiting for their opportunity.