While most of us will have enjoyed at least a few days break towards the end of last year, the property market doesn’t appear to have taken a back seat, with values continuing to grow off the back of an already strong spring selling season.
According to the CoreLogic QV December 2019 House Price Index, property values rose by 0.9% over the month, with the annual rate of growth increasing to 4.0%. That’s up from the 2.0% lull in June 2019, and the strongest annual growth figure since September 2017 (5.0%).
In fact, the quarterly rate of growth for the last three months of 2019 was 2.7%, which was the largest quarterly increase since November 2016 (3.9%). This was the point at which the Reserve Bank of NZ (RBNZ) made its final round of tightening of the loan to value ratio (LVR) restrictions, most significantly requiring residential property investors to have a 40% deposit for new loans.
Since the end of 2016 the RBNZ has been through two rounds of easing of the limits, however opted against a third in their most recent Financial Stability Review, partly due to the recent resurgence in the property market.