LVR Changes: Impact on the Housing Market
- * Reserve Bank Adjusts Lending Restrictions: The Reserve Bank is easing Loan-to-value Ratio (LVR) restrictions.
- The article includes quotes from Infometrics economist Matthew Allman and a file image of Kelvin Davidson.
Here’s a summary of the key points from the provided text:
* Reserve Bank Adjusts Lending Restrictions: The Reserve Bank is easing Loan-to-value Ratio (LVR) restrictions.
* Timing is Right: Economists believe this is a sensible move as house price growth is low (0.2% annually) and debt-to-income restrictions are already in place.
* Limited Impact on Prices: It’s unlikely the easing of LVRs will significantly increase house prices.
* Market Constraints: Demand for lending is already constrained by poor housing affordability and low rental yields for investors.
* Sustainable Estimates: House prices are currently within a sustainable range according to the Reserve Bank.
* Moderate Lending: Mortgage lending growth is moderate, and high-risk lending is low.
The article includes quotes from Infometrics economist Matthew Allman and a file image of Kelvin Davidson.