Real Estate Round Up This Week | Affordable Homes

Real Estate Round Up This Week | Affordable Homes

So this week we have experts predicting a crash, reporters reporting record asking prices, economists suggesting the markets have softened and more reporters touting the soaring property prices. Asking Prices At Record Highs. Web site Realestate.co.nz says house sellers’ average asking price last month was at record levels. Buyer interest is still high with traffic numbers to the site up and there are more than 40,000 available houses for sale nationally. Sellers’ national average asking price was $483,524, only marginally below the record set in March of $484,263. In Auckland, the average asking price was $685,246, almost the same as the new record set in April of $685,426. In Wellington the average asking price in May was $453,850, while Canter via:¬†Asking price for homes at record levels Property Crash On It’s Way However just a few days earlier it was reported that there is evidence that the market has softened….. Evidence is accumulating that the housing market has turned. Is it a temporary hiccup caused by the Reserve Bank’s imposition of restrictions on high-LVR lending and higher interest rates, with the market set to soon rebound to new highs? Or is it the beginning of a crash? The housing market is a tricky thing to predict, but the truth probably lies somewhere in the middle. Let’s examine the evidence that things are slowing. REINZ data shows national house sales are running around 12 per cent lower than a year ago, and nearly 14 per cent lower in Auckland. House price inflation tends to follow sales with about a three month lag, so it is not surprising that QV data...
Monday Property News by Affordable Homes

Monday Property News by Affordable Homes

The number of houses, flats and apartments valued under $400,000 in Auckland dropped by a third in the past 12 months. In some areas the total in that price bracket has more than halved. Data from CoreLogic’s E-Valuer showed that of the 656,500 properties valued in that price bracket across the country, just over 62,000 were in Auckland. A year ago there were 91,000 in the city – a drop of 32 per cent. CoreLogic research and analytics director Jonno Ingerson said the drop was most significant in North Shore and Waitakere, where the number of properties in the $400,000 or less price bracket had fallen 55 per cent. “Clearly the number of properties worth less than $400,000 has dropped – and, in Auckland, quite dramatically,” Mr Ingerson said. “But a corresponding drop in the number of sales does not mean that the bottom of the market has fallen away, just that there are fewer to buy.” Number of city’s sub-$400k properties dwindle by a third You can pick up a historic Auckland city building valued for its early 20th century Chicago-styled architecture but with a modern and contemporary heart. The fully leased General Building at 29-33 Shortland St has been placed on the market by its owners, John Courtney, founder of Shortland Management Ltd, and his partner, Michelle Deery. The nine level building dominating the corner of Shortland St and O’Connell St is home to several leading professional businesses and generates net annual rent of $1.77 million with a weighted average lease term of 4.7 years. Chicago style for sale on Shortland St¬† Not far down the road...
Property Sales Fall

Property Sales Fall

April house sales figures show mortgage lending restrictions are hitting the bottom end of the property market the hardest as the number of house sales under $400,000 fell sharply in the past year. Real Estate Institute of New Zealand (Reinz) monthly figures show sale numbers across the country fell 20 per cent last month compared with April last year. But the most affordable homes were worst affected, with a 31 per cent drop in sales for properties worth less than $400,000 – 1151 fewer sales. Sales of homes worth more than $1 million increased by 14 per cent over the same period. Reinz chief executive Helen O’Sullivan said the figures suggested the loan to value ratio restrictions were being felt by buyers at the lower price points. via NZ Herald...