After experiencing quick growth in the last quarter of 2014 and the seasonal dip of Christmas, the market has been remarkably steady for new lending over 2015. The introduction of the new LVR limits for investors can be seen in the dip in investor numbers in October 2015, but this has since recovered.
First home buyers can be seen to be a fairly steady presence in the market over this entire time, growing from $392m in August 2014 to $624m a year later, and a peak of $745m in November.
Volumes look steady over time however 2015 looked a lot stronger for approvals compared to 2014, with many weeks touching above $1.4 billion. The central bank has had some impact on the market it seems. A dip in numbers Oct 2013 as the low deposit restrictions came in to effect, a dip in 2014 as the central bank entered its upward cycle with interest rates.
Whats ahead?
2016 should be an interesting year, we have accelerating net migration and speed bumps on the future of the supply for Auckland housing. Changes in the deposit requirements and migration points has also added some incentives for purchasing out of the Auckland region. Lower interest rates and a growing NZ economy could mean we see good demand for home ownership going forward.
This article has been written by Hamish Patel, mortgage broker with mortgagesonline.co.nz. Ph: 09 625 4693, Mobile: 021 625 693, hamish@monline.co.nz
