New listings of houses for sale stalled in September, according to online advertiser realestate.co.nz, but the usual spring surge is still expected in October and November, despite new lending restrictions coming into force today.
The site's marketing manager, Peter McKenzie, told BusinessDesk the 5.3 per cent fall in listings between August and September was the first such drop since 2007, but at this stage there was no evidence that sellers were holding off listing because of loan to valuation ratio restrictions introduced by the Reserve Bank of New Zealand.
The LVR restrictions are intended to curb highly leveraged borrowing to take some of the steam out of the housing markets in Auckland and Christchurch, in particular, which the RBNZ fears could become an investment bubble capable of harming the wider financial system if it bursts.
The online real estate service recorded a 0.1 per cent drop in the total number of houses listed between August and September, while new listings fell 5.3 per cent across the country, with Auckland listings down 3.1 per cent and Christchurch listings down 8 per cent.
In commentary on the figures, ASB economist Jane Turner said the drop reflected the lack of housing supply, which the bank argues will continue to drive house prices higher in coming months.