Boost first home buyer opportunities
That’s because the availability of lending is limited yet there is some evidence that there are more sales prospects at the lower end of the Auckland market.
Barfoot & Thompson’s August data suggests that the current market is having only a modest impact on the lower end of the market.
The agency’s director, Peter Thompson, said public opinion has it that there are few homes for sale in Auckland at under $500,000.
“But, in August, we sold 90 properties in this price category, representing 11.6% of all sales for the month.”
Windler, who is a director of the Mortgage Supply Company, said there are more opportunities now, in the current market, for first home buyers than there has been for some time.
“I’ve seen one or two sales in the low $500,000 mark recently so there are some properties in that bracket out there.”
The biggest problem that first home buyers have is getting funding as banks have more limited lending capacity at the moment, he said.
“So for first home buyers, it really comes down to the availability of funding.
“In my view, that means that now, right now, is the right time for the powers that be to unwind the LVRs for first home buyers”.
There has been a surge of calls for the LVRs to be reviewed, particularly for first home buyers, but the Reserve Bank believes that the LVRs are still needed.
LoanMarket’s Bruce Patten said he doesn’t think there is any chance the Reserve Bank will make any changes to the LVRs by the end of this year.
“I would like to see some changes in the first home buyer space.
“But any changes, particularly in the investor space, are unlikely because the LVRs are having the effect the Reserve Bank wants.
“The market hasn’t gone down, rather it has flattened out. The Reserve Bank doesn’t want to do anything that will stimulate the market again.”
Patten also said he was surprised by the Barfoot & Thompson sales figure for the lower end of the market.
“In the under $500,000 price bracket, I would say that such sales would have to be predominantly in the apartment market.
Campbell Hastie, from Go2Guys, agreed. He said he isn’t seeing any deals for under $500,000 in Auckland.
“For first home buyers the starting price in Auckland is in the $600,000 - $650,000 range.
“You would be hard pressed to find something under that bracket – unless it leaks or it is a section alone.”
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