Quotable Value New Zealand's latest monthly QV House Price Index shows house prices are still rising but at their slowest rate since May.
Nationwide residential property values for October increased 12.7% over the past year.
Values rose by 3.3% over the past three months and are now 50.2% above the previous market peak of late 2007.
In Auckland, the market climbed 13.8% year on year, the slowest rate since March 2015, with the average home value for the Auckland Region at $1,045,207.
QV national spokesperson Andrea Rush said, “The QV House Price Index is now showing a slight tick to the right which reflects an easing of 1.6% in the annual rate of growth over the past month as the latest round of LVR restrictions begin to take effect.
“Sales volumes are down by around 12.0% on the same period last year and mortgage approval rates are also down.
“Home values continue to rise faster in the Wellington Region than the Auckland Region, and the housing market in the Capital appears largely unaffected by the new LVR restrictions, particularly at the more affordable end of the market in areas such as the Hutt Valley, Porirua and the Kapiti Coast."
QV Auckland general manager Jan O’Donoghue said although listings in Auckland have surged in the past month, the impact of the LVR restrictions are being seen in lower levels of activity and market demand.
“Demand has eased back from previous highs at the low-end of the market now that there are not as many investors active in the Auckland market due to the new LVRs.
“It appears that new investors and ‘Mum and Dad’ investors are the ones most affected as they are reliant on higher loan to equity ratios, and so tend to be more affected by the LVR changes than well-established investors.
“There are reports of investors’ having more difficulty raising the extra finance through banks, following the new LVR changes. There are still properties selling but it is not as easy as it was prior to the new changes coming into play.”