Mortgage approvals were worth almost 50% more in the May 2012 quarter than they were a year earlier, according to ANZ’s property focus.
By Susan Edmunds
The number of mortgage approvals in the most recent three months was 25% ahead of the same period a year ago, the biggest increase to date, the bank said.
The value of approvals lifted 42% on a year earlier.
“A streak of 40%+ growth has been evident for most of the past six months,” the report said.
And the pile-up of housing stock on the market looks to have eased significantly. “At 36 days, the nationwide days-to-sell has continued to edge down and is not far from the lows-30s rang that was apparent during buoyant times.”
The number of months required to sell all New Zealand listings is at a four-year low and a five-year low in Auckland.
The report said the recovery in the real estate market appeared to be broadening throughout most parts of New Zealand.
The report includes the ANZ Property Gauges, 10 gauges the bank uses to assess the state of the property market and look for emerging trends.
Of the 10 gauges, only three – affordability, servicing and migration – are pointing to prices decreasing.
Interest rates and median rent are cited as putting upwards pressure on prices, while supply and demand and liquidity put level or upwards pressure on prices. The gauges indicate globalization could pose a threat.
On balance, the property market was ruled as level and in a period of consolidation.
The report expects activity in the property market to continue to increase, citing low interest rates as a driver.
“Aggressive competition and lower wholesale interest rates have resulted in falls in carded fixed mortgage interest rates, with borrowers also often managing to achieve significant discounts in addition to this.”