Where is the Auckland Market heading?
With the new LVR rules in place effective since the 1st Nov 2015 being a 30% deposit instead of the 20% which was only introduced a year or so ago we have noticed a significant drop in buyers at auctions as well as buyers confidence.
From a hot market earlier in the year we can see the shift from a seller’s market demanding whatever price they wanted to now a buyers market where many are waiting for the auctions to finish with no bids, then to negotiate hard with the seller due to an unsuccessful sale.
Along with the LVR change there has also been numerous investor laws being passed which affects mainly foreign investors. Having a big portion of homes being sold to foreign investors we are now seeing the new laws which says overseas investors must have a IRD number as well as a NZ bank account. This has definitely contributed to the lack of sales and in our opinion we see it causing the market to slump and continue slumping for the foreseeable year.