Today is Tuesday, 24 October 2017
Our Take on the Market
With lots of current outside influences the Property market continues to flatline. Election years traditionally bring with them a slowdown in the real estate market with, so it seems, many people holding off their decisions to either buy or sell while the country goes through the process of electing a Government. Add to that the new loan restrictions, (LVR) introduced last year, and the fact that we were naturally at the top of the property cycle anyway, what we are experiencing today is fully understandable. Going forward I have seen reports of predictions both ways – that this is just the start of an overall collapse, through to predictions of another boom commencing in 2018 – time will tell!
What I can tell you now though is that for July the REINZ figures show that locally there were 115 sales. The last 3 months have seen the number of sales slipping – from 171 in May, to 132 in June, and compared to July 2016’s 151 sales we are down in volume year on year by approx 24%. However our median continued its recovery from the previous 3 months to settle at $1,090,000 – up 2% from Junes $1,069,000 and up 1.4% from July 2016’s $1,075,000. The highest median we have had was in March this year at $1,140,000 so we are down approx. 4.4% from the height of the market. Days to sell dropped from last month’s 40 down to 37 and the number of properties for sale in the area stayed level with realestate.co.nz showing currently 318 properties for sale, compared to 317 last month.
For Auckland overall the picture was slightly different with a small drop in the median month on month, and year on year. The median at $830,000 compares to July last year $840,000 and Junes this year $850,000. Pulling this apart a bit by regions the North Shore and Waitakere only saw decreases in their median price since July 2016, with Waitakere being most significant at -9%. On the converse Auckland city central moved from $830,000 to $915,000 but this was down from last months $1,002,500. Sales volumes in the Auckland area overall took a big hit from last years figures. Sales for July were 1,666, down from Junes 1,827 and when compared to July 2016’s 2,399 we have a downward movement of 30% year on year. So mixed messages all round.
Nationally the median came in at $518,000 which is up 3.4% year on year. For July four regions posted new record median prices year-on-year – Otago up 15.3% to $400,000, Nelson up 20.2% to $493,000, Northland up 23% to $455,000 and Hawke’s Bay up 25.8% to $400,000.
I have seen some calls for the LVR’s to be lifted for first home buyers. Whilst this would certainly increase help for first home buyers get on the ladder the market currently is giving them great opportunities to buy without having to compete with the investment buyer.
Please feel free to contact me anytime on 0274966966 to discuss your property needs.
Greg Roy AREINZ, Principal/Owner
TOTAL FOCUS PROPERTY LTD