It may be spring but the housing market appears to be cooling rapidly. Over the last 12 months or so the number and strength of headwinds for the housing market have increased. Slightly higher mortgage rates, election-related uncertainty, stretched affordability, a tougher environment to get credit, and the Reserve Bank’s tighter loan-to-value ratio (LVR) requirements for investors have together had a marked effect.

Property turnover has dropped sharply and house price inflation has fallen – and in fact is modestly negative in Auckland. The mood of the market has changed.



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