Banks ease lending rules as house sales slump

An earthquake and a tax rise have combined to push house sale volumes to a 10-year low, as one major trading bank hints at zero-per cent deposits to lure new homebuyers.

Real Estate Institute data for September - out yesterday - shows the annual spring sales bounce failed to materialise, holding the median price at $350,000.

Most Auckland suburban areas showed slight price rises from August and September, but institute spokesman Bryan Thomson said national volumes were at their lowest for at least a decade.

House sales totalled 4323 last month, less than half the number for September 2006, when the market was booming.

Mr Thomson blamed uncertainty over tax changes and the Canterbury earthquake.

The gloomy figures came as ASB launched an advertising campaign hinting that borrowers might no longer require a one-fifth deposit to get finance

The ad, which ran in the Herald yesterday, promised "we can help if you don't have 20 per cent deposit. That should calm you down 100 per cent."

To read the full NZ Herald article, click here

Posted: 15 Oct 2010

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