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New mortgage numbers down as market slows

NZ NewswireNZ Newswire 30/10/2016

<span style="font-size:13px;">The number of new mortgage restrictions lodged in Septmber are more than a fifth lower than at the same time last year.</span> © AP The number of new mortgage restrictions lodged in Septmber are more than a fifth lower than at the same time last year. New figures indicate the heat is coming out of the housing market with new residential mortgage registrations falling by more than a fifth on the same time last year.

Property insights company myvalocity says the data is further evidence that the market is slowing down.

"Mortgage registrations are a good indicator of the financial performance of the market as it tracks the behaviour of all active buyers rather than just what is actually selling at the time," said chief executive Carmen Vicelich.

Nationally the number of new residential mortgage registrations slumped by 21 per cent compared to September 2015 with Auckland down 26.2 per cent.

"This is something we have not seen before. The property market is, to some extent, seasonal and traditionally we expect to see a rise in mortgage registrations in spring, however this has not been the case so far this year," Mrs Vicelich said.

She said it appeared the Reserve Bank's loan to value restrictions and a lack of supply was having an impact on the market with the number of active investors down 19 per cent nationally and by more than 35 per cent in Auckland.

Not all regions fell - Wellington and South Island metro area were up 2.8 per cent on new mortgages at the same time last year.

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