WELLINGTON: New Zealand house prices fell for a second month in a row in January, and the number of houses sold also slipped from the previous month, as limits on bank home loans looked to be having an effect, the Real Estate Institute of NZ (REINZ) said on Monday.
"There are a number of factors in play in the market in January, including seasonal factors and the ongoing impact of restrictions on high loan to value lending," said REINZ chief executive Helen O'Sullivan.
The housing market has picked up since early 2012, particularly in Auckland, the country's biggest city, and earthquake-damaged Christchurch, as a shortage of houses in both cities has been bolstering prices.
Limits on how much retail banks can lend on low deposit home loans have been in place since last October by the Reserve Bank of New Zealand (RBNZ) to slow the rise in house prices.
The central bank is expected to start raising interest rates next month, with the state of the housing market a key factor in the timing and extent of any rises.
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