Barfoot: Rules having no impact yet

The real estate agency says there has been a reduction in the number of homes sold at auction but sales had been occurring later after negotiations between the buyer and seller.

Managing director Peter Thompson said: “This may well be a sign that buyers do not have the same flexibility as previously, and are looking to get confirmation from their bank before completing the purchase.”

But he said the new loan-to-value restrictions were not having much of an impact otherwise.

The agency’s average sales price increased 3.2% in November from October, to $684,646. The median increased 5.3% to $621,400.

But sales numbers were down 7.1% on October, although still higher than September and about the same as November the previous year.

Thompson said November was usually one of the strongest months of the year but it was less active than October had been. “What may have occurred in October was a rush of activity in anticipation that change was about to happen, with people determined to get their property intentions sorted ahead of that change.”

He said there had been no real change as a result of banks being unable to lend as many loans to borrowers with a deposit of less than 20%.

“This comes as no surprise as structural changes of the type being sought by the Reserve Bank can take many months to flow into the system. If change does occur, it is likely to be towards the end of the first quarter of 2014 before its influence is felt.”

The agency ended the month with 3637 properties on its books, the same as at the end of October.