First signs of a cooling housing market

Housing market activity slowed in April, with nationwide sales down 13% month-on-month, Auckland down 21%, Otago -18%, and Waikato down -18%.

It follows the reintroduction of loan to value ratio restrictions, and the Government's clampdown on investors, including an extended bright-line test and the removal of interest deductibility. 

However, house prices rose once again. According to the REINZ report, house price inflation rose by 1.7% in April, an annual jump of 26.8%.

ASB, commenting on the data in a new report, believes the housing market has been "resilient to change".