LVRs kicking in for Auckland house prices

Westpac’s latest market commentary shows Auckland house prices have been a relative laggard – up 3.4% in the past three months, compared to 6.7% in the rest of the country.

Acting chief economist Michael Gordon says it’s not that Auckland was running hotter than the rest of the country previously; rather, it’s more likely the LVR restrictions have had a greater impact in Auckland, where investors typically make up a bigger share of the market.

Gisborne, which was previously the hottest regional market, has had a slight fall in prices in the past two months.

In contrast, prices in Canterbury have continued to surge, with little sign of a loss of momentum.