Auckland house sales are showing no early signs of being restrained by Reserve Bank restrictions on high loan-to-value home loans introduced last month, according to realtor Barfoot & Thompson.
Sales rose 8.9 per cent to 1,203 in October from September, the firm said in a statement on Tuesday. The average price rose 0.8 per cent to $NZ663,123 ($A583,606) while the median price declined 1.7 per cent to $NZ590,000.
From October 1, the Reserve Bank has required banks to restrict mortgage lending to borrowers with less than a 20 per cent deposit to no more than 10 per cent of their total lending.
The central bank is concerned that a house price bubble, driven by housing shortages in Auckland and Christchurch, could cause financial instability.
“It could be up to six months before the market feels the full impact of the new mortgage lending regime, and certainly one month’s experience is not enough to make judgments about the success or otherwise of the initiative,” Peter Thompson, managing director of Barfoot & Thompson, said in the statement.
Sales recorded in October would have been kicked off in August or September, he said.
The New Zealand market is in its peak sales period as people seek to finalise their property transactions ahead of the summer holiday break.