Provinces suffering: Harcourts

In its latest MarketWatch report, it says total new listings in the Northern region, which covers Auckland and Northland, were down 2.4% in February on the year before. In the central region, they fell 21.1%. In Wellington, there were 4.1% fewer listings than in 2013.

In the South Island, Christchurch had 11.1% fewer listings in February than in the same month last year and the rest of the South Island had more than 25% fewer.

Written sales also dropped – by 3.8% in the Northern region, 2.3% in the Central region, 8.9% in Wellington, 6.7% in Christchurch and 10.3% in the wider South Island.

But prices were up – 18% in the Northern region, 15% in Wellington, 18% in Christchurch and 15% in the wider South Island, on average.

Chief executive Hayden Duncan said migration would keep pressure on in Auckland and Christchurch.

He said the two biggest cities also had not experienced much impact from the loan-to-value restrictions. “Although some first-home buyers and investors were temporarily deterred from making a purchase, they have found their way around the need for a 20% deposit by using second-tier lenders and borrowing from family.”

He said reports that some borrowers were using credit card debt were a concern.

But Duncan said provincial New Zealand was being hurt by the rules. The central region was the only one that reported a price drop, down 3%. “Harcourts’ sales consultants are reporting a cooling off in the level of interest and prices. However, in the provinces the market has never been overheated and LVR restrictions have simply made it more difficult for New Zealanders to buy an