New Zealand house prices continue to rise in June: Reinz

NEW Zealand house prices edged higher for the third consecutive month in June spurred by supply shortages and after the central bank eased mortgage loan-to-value (LVR) restrictions, the Real Estate Institute of New Zealand (Reinz) said on Thursday (Jul 13).

Seasonally adjusted median house values rose 0.3 per cent in June compared with May, but were down 8.3 per cent from a year ago, Reinz data showed.

“Salespeople across the country are reporting increased first home buyer activity at open homes, with the easing of LVR restrictions that came into effect on Jun 1 bringing more people out looking,” Reinz CEO Jen Baird said in a statement.

The Reserve Bank of New Zealand in May decided to ease LVR rules, which set limits on how much a bank can lend to a homebuyer against the value of the house, saying risks to financial stability had diminished.

Seasonally adjusted national home sales volume rose about 7 per cent from May in a tight market as new listings fell more than 15 per cent. REUTERS