Sydney has been leading the charge in property sales for the past several months, with 16 out of 18 months at 80% or above in auction clearance rates. Interest rates are still at a record low, and with Sydney median prices at a staggering $700,000, regulators are ready to push the panic button.
The financial industry has joined the bandwagon in home property sales, offering Loan to Value ratios as much as 95% of the property value, even lowering down their required deposits.
Although the high demand for property and low interest rates are conducive to home buyers, the high median prices add skepticism among regulators as this can cause market instability once interest rates shoot up and demand for property wanes. With the current clearance rates, it doesn’t seem like it’s going to happen anytime soon.
Read more about this on the Radio New Zealand News website.