Today is Wednesday, 15 August 2018
Our Take on the Market
Cooling off continues
As we head into winter the real estate market is following suit and also continuing its cooling off phase. Monthly sales figures for April just released by REINZ show that the median price for our local area, Eastern Beaches, dropped back to $995,500, the first time it’s been under the $1 million mark in 24 months. The median for March was $1,099,000 so we had a 9.3% drop over the month. In April 2017 the median was $1,110,000 so we are just over 10% down year on year. From the peak of the market, which was $1,140,000 in March 2017 we are down approx 13%. As I said last month we appear to be bouncing all over the place, but the general trend is that of prices easing back. Sales volumes for the month were 116, well below the average for the past 5 years of 162. As I write this realestate.co.nz is showing 403 properties for sale in the area which is slightly down from last month’s 441, Auckland overall saw a decrease in the median price down to $850,000, from last months $880,00 and marginally down – 0.6% – from $855,000 in April 2017. Auckland overall peaked in its median price in March 2017 at $900,000 so currently is down approx. 5.5%. Sales volumes for Auckland were 1854 – similar to last Aprils 1810 – and of these 436 were sold by auction, compared to 559 properties in April 2017.
Nationally the median rounded out at $550,000 which is down slightly from last months $560,000 but still up from last Aprils $540,000. There were 6,368 houses were sold across the country in comparison to 5,973 in April 2017, with 12 out of 16 regions seeing a year-on-year increase in the number of properties sold, and 7 of those regions having double digit increases. Auctions are becoming a less popular method of sale across the country with 13.2% of all sales – 843 properties, selling under the hammer, down from April 2017, when 17.3% of properties were sold via auction. The number of properties available for sale nationally increased by a marginal 1.1% (from 25,988 to 26,269) compared to 12 months ago.
We have found that there is a distinct lack of investors in the market – both as buyers and sellers. If recent changes to the bright line tax and talk of the end of negative gearing changes were meant to be bringing more properties to the market from investors selling out there is no evidence of this yet. Of interest I read somewhere recently that Treasury are forecasting that on average nationally house prices will rise by 2.8% in the year to June 2019 then 2% the following year, 3.4% in the year to June 2021, and 3.7% the year after that.
Please feel free to contact me anytime on 0274966966 to discuss your property needs.
Greg Roy AREINZ, Principal/Owner
TOTAL FOCUS PROPERTY LTD