The average value of all homes throughout New Zealand increased by $21,275 in February, while the average value of Auckland homes increased by $34,124 for the month.
Those extraordinary growth figures are from property data company CoreLogic's House Price Index, which tracks the valuations of homes throughout NZ based on sales data over the previous three months.
It shows that in February the average value of all homes throughout the country was $827,426, compared to $806,151 in January, an increase of $21,275 (2.6%) in a month.
In Auckland, the average value of all dwellings increased from $1,164,440 in January to $1,198,564 in February, putting the average value of homes in the region within a hair's breadth of $1.2 million.
That means average residential property values in Auckland increased by $1219 a day in February, equivalent to a weekly after-tax pay packet of $8531, or $443,612 a year.
The biggest increase in Auckland's average values was in the eastern district of central Auckland, which includes upmarket waterfront suburbs such as St Heliers and Mission Bay, where average values increased by $57,404 for the month, from $1,712,828 in January to $1,770,232 in February, making the area's housing the most expensive in the country.
In dollar terms the lowest value growth in Auckland occurred in north west Manukau, where the average value increased by a relatively modest $17,969 for the month.
Franklin has the lowest average value in Auckland at $777,102, one of just five districts (Franklin, Papakura, North West Manukau, Central Manukau and Waitakere) where average dwelling values remain below $1 million. The table below shows the average property values in all districts and the percentage value growth over three and 12 months.
Opotiki values soar
However the biggest increase in value in February wasn't in any of the major cities, it occurred in a small town on the east coast of the North Island.
The average value of homes in Opotiki increased by $61,938 in February, rising from $372,639 in January to $434,577 in February.
Other areas where average dwelling values increased by more than $50,000 for the month were central Auckland +$50,405 and Whakatane +$53,757.
Only three districts recorded falls in average values in February; Tauranga where it dropped by $13,255 compared to January, south Wairarapa where it fell by $953 and Kaikoura where it dropped by $4979.
In other main centres, average values were up $18,891 for the month in Hamilton, +$25,003 in the Wellington region, +$8413 in Christchurch and +$18,684 in Dunedin.
The least expensive housing in the country is in Buller, where average values increased by $5384 in February to $240,103.
However CoreLogic's head of research Nick Goodall has warned that the spectacular value gains will probably not last.
"It's likely that the current rate of growth will ease over the coming months," he said.
"This is especially likely following the Minister of Finance's direction to the Reserve Bank to 'have regard to the impact of its actions on the Government's policy of supporting more sustainable house prices.'
"The latest communication is more explicit with regard to actively contributing to the Government's housing policy objectives, namely reducing investor activity and improving affordability for first home buyers," Goodall said.
"With the hard line taken by the Government to reduce speculator activity, and now the Reserve Bank having somewhat of a mandate to assist them, the outlook for future property investment looks less certain, although with the Prime Minister also declaring a desire to protect wealth in our largest asset class, expectations are for a slowing of growth rather than a reversal," he said.
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200 Comments
Seriously?!! This is nuts though not surprising.... the lightning SLOW speed to get any consent slightly out of ordinary is killing me
Beautiful isn't it? Wage growth only at 1.9% per year, in a very real way housing is New Zealand's economy now. I see tremendous upside later this year when the RMA changes to increase consenting complexity are announced and the immigration floodgates reopen a torrent of new demand.
Oh but David Parker said it will make it easier to consent /sarc
How much do you think David Parker knows about housing?
That's wrong, it won't increase complexity. Yes there will be three pieces of legislation but only one focusing on the resource consent process, which by all accounts will bring through more streamlined processes.
We'll see but I'm dubious that this has any impact.
I don't think it will have a major impact. But I see some subtle improvements, which are welcomed.
But probably not enough...
What is going to happen, between the 3 new Acts they will contradict each other, leading to timely court cases to set precedent, in short, it will be a Shitfight.
The NPS is already being gamed by councils
Each act will have very specific frameworks, sure there will be some overlap.
You're optimistic. I'm betting that Council will require 3 separate applications to go to 3 separate Council work groups, with 3 separate sets of fees.
That's getting very close to the rate at which Reserve Banks are debasing money!
GR is still thinking about it.
Yep and AO is still contemplating wether lower interest rates affect house prices, hmmm...
Can't eat the notional value in a house until it's sold... A2 Milk too.
Asset rich, cash poor.
By your definition, Elon Musk and Bill Gates are not rich at all, they cannot eat their shares
Shares are highly liquid in any market.
Houses are highly liquid in this market if you are an investor.
They can. People that rich borrow against their shares at low interest rates, and then spend that cash. That way they do not have capital gains tax to pay, nor do they reduce their share holdings.
How long before housing hyperinflation spreads to food prices? If the central banks can't control housing, how will they fare with inflation in the general economy?
They will fudge the numbers to hide it. Same as they already do. When they can no longer do that they will claim it's temporary and "look through" it.
Brock
How is the central bank (RBNZ) fudging inflation numbers - any evidence of that or just baseless rhetoric?
By the way Stats NZ not RBNZ responsible for inflation data.
Hedonic regression. Also by only including consumer goods & not investment goods i.e land they are not capturing the area of society where inflation is at the moment rampant.
Inflation in NZ depends largely on what happens in China.
Food price inflation has absolutely nothing to do with house price inflation
So the people that grow, packs, transport, wash and sell the food don't pay rent or have a mortgage...?
They do, but apparently rents can always be increased ad infinitum but wages only increase in line with the legislative minimum amount.
It's perfectly clear - the only business the reserve bank is supporting is housing. All those struggling tourism businesses should just give up and buy housing.
Didnt you hear, the economy is going gang busters
Jacinda and Grant still too busy sniffing each others butts while mad dog Adrian just can't seem to find any "inflation".
Aroha.
just need to look at the hourly rate tradesmen are charging out at, then you'll see inflation. Forget about CPI, its only a small part of the picture
Good, the day a tradesperson gets paid more than a corporate middle office team leader type is looong overdue.
Trades people gets far more than the average high level Uni graduate so you don't need to worry about them.
B L,
Bullsh*t. Intellectually, Orr could eat you for breakfast. Of course he knows where inflation is, but has said that house prices are not the RB's business-though it is now. Anyone paying the slightest attention knows that QE from whichever government has been much more about inflating asset values than directing capital to business. Indeed, many have admitted as much. They have done this in the hope/expectation that consumers would be confident enough to spend more and so keep the GDP show on the road.
Sure but where does it get you? You can only drive rates down so far and for only so long - and when he runs out of rope, he will have created a mountain of debt that won't go away.
Adrian Orr believes he is omnipotent and that he can dictate all things - he will eventually be revealed for the Charlatan that he is - just like Greenspan. Its like watching Irving fisher calling the stock market a Permanently High Plateau ... in 1929. Or economists declaring the "Great Moderation" and the end of volatility ... just before 2007. All of them ignore the role of private debt and so all of them are destined to be wrong.
This is ugly - very very ugly for the RBNZ.
Mr Orr has been waiting for inflation and here it comes with Dairy jumping 15% this morning- Dairy is used in a massive amount of food products - so this is sure to push up food prices
The demand for Dairy- will push up the NZD (and Orr will probably be okay with this as he will no longer need a low dollar to protect exports ) and its likely that will also result in more labour needed to support the dairy industry and associated industries - but at a 4.9% unemployment rate there is not a lot of spare labour capacity. A hard choice may then need to be made to let wages inflate or bring in more labour.
Either way I'm seeing an interest rate lift this year and not 2022 and that's likely to hurt all those whom have borrowed to the hilt in order to buy a house.
Must be time then to remove all diary related products from the CPI basket...
Yeah and put house prices into the CPI basket thats sure to make it better. The measure of inflation is rigged. If we were seeing the "True" inflation figures it would be horrific increases clearly showing its out of control already and interest rates would already be rising and fast. Its all smoke and mirrors and they know it.
Go and look at m1/2/3 money supply increases and based on historical measures if inflation, were spiralling into hyperinflation and have been for quite sometime - it’s %#{]% insanity.
https://fred.stlouisfed.org/series/M1SL check out this hockey stick!
As I say, central banks are out of control. This is #%*+*}] insane.
I'm truely surprised there aren't protests on the streets (globally), the Reserve banks have free reign.
But there have been - protestors even stormed the US capitol building. It’s just that everyone is confused about what they should be protesting about. It’s rising inequality so black people blame white (and vice versus), right-wing blame left-wing (and vice versa) and poor blame the rich (and vice versa).
Not realising that it’s the central banks tearing society apart by screwing with the value of money. When the people wake up that it’s the system that’s broken...(and stop blaming other groups)..watch out. There could be radical changes to society and how it functions.
Pretty sure the Fed's QE program wasn't the reason the rednecks stormed Capitol.
Ask yourself why society is breaking down and follow the bread crumbs.
Where is society breaking down? Are you really arguing that the moron's that stormed Capitol Hill did so because house prices are rising there?
Its breaking down all around us. Look at the US. Politically its never been so divided (equal to civil war period) and financially the inequality is approaching breaking point. Might need to take your tinfoil hat off to see it - or just turn the TV on?
Your judgement is completely blinded by your unwavering and unrelenting bitterness regarding house prices rising in NZ. The left v right political discourse is completely unrelated to monetary policy. In fact since Biden took power things have toned down a lot. House prices are down a lot in some parts of Manhattan and SF etc.
Ok yes my judgement on NZ house prices is influencing the many divides actually taking place in the world (where there is real data to support that argument). I thought I said to take the tinfoil hat off! (jokes).
So, elaborate on your reason why you think Biden has caused house prices to fall in some parts of Manhattan and SF etc.?
I didn't link the two. I mentioned it because the other poster is blaming rising house prices for political unrest in the US. House prices are falling in some parts of the US - I gave two examples.
The other poster isn't doing such a thing - you've made that up in your own head. Re-read the thread (preferably without the tinfoil hat).
How are societies breaking down? Massive inequality
Why are trump supporters angry? Hollowing out of the middle class, stagnant real wages and ever rising costs of essentials and an increasing share of wealth is going to those with capital (but by importing cheap luxury goods we pretend the inflation isn't happening). It's the same underlying problems that impact the "left", so it's ironic both "sides" are angry at each other, not at those causing the problems.
What does this have to do with NZ and house prices? The same factors are playing out in NZ, but its happening in different ways. We have stagnant real wages, rising costs of essentials (housing), while an increasing share of the wealth is flowing to those with capital (those owning multiple properties).
All the while we have the RBNZ worrying about low inflation, believing we can make a structural shift to generating inflationary pressures via increases in private debt. Inflation requires increases in WAGES not DEBT, but that would require those with capital to give up that increased share of wealth they are capturing.
Good enough for you?
Bang on! Great comment
When people wake up, they opt out of the centrally controlled money printing system and buy Bitcoin.
Dont get left behind.
https://chrisgimmer.com/bitcoin-reserve-asset/#:~:text=Portability%3A%2….
https://www.bitcoinblockhalf.com/
how else do you expect to inflate away the debt?
Exactly, RBNZ will 'look through' the dairy price inflation.
Interest rates won't be lifted. We live in a corrupt kleptocracy.
Eventually they will have to Brock. They may go lower but that's the end of the line
They are not accountable.
Brock
“Corrupt kleptocracy”
What have you been on today or did you just forget to take your happy pills?
NZ has previously cut rates and then lifted them within 12 months. Case in point
July 03 - Rates were cut 0.75% over 3 months and by Jan 04 they were lifted - with a total 1.25% increase between Jan 04 and Oct 04
Apr-09 - Rates were lowered .50% - capping off a period of decreases of 5.5% from July 08 - Apr 09- Rates were then lifted by 0.5% in June and July 10.
All of these increases were a result of an overheating economy. too much inflation, rapid economic growth and low unemployment (excluding 2010).
People can say interest rates wont go up- but history disagrees
B L,
A kleptocracy is by definition corrupt. And your evidence for this is?
"I'm seeing an interest rate lift this year"
Definitely wont be.... Orr is hemmed as far as ocr goes and he is thinking to use more QE to torpedo rising long term swap rates
he wont have a choice - the alternative would be an overheated economy and without interest rate hikes to cool the inflation and demand , the economy will run out of capacity and a certain recession would follow - which would result in an even more catastrophic fall in house prices.
https://www.centralbank.ie/consumer-hub/explainers/what-does-overheatin…
Orr is a classic economist - he is using standard economic theory of manipulating interest rates to control the economy - unfortunately what goes up also must come down. Anyway last week Adrian Orr - fired the shot over the bow - warning FHB's not to overbid at auctions and stretch themselves too thin- a clear indication he will need to lift rates and is worried.
The other clear sign will be banks lifting rates as well - not necessarily in what they offer as the home loan rate but in how they assess peoples ability to repay - its likely of the banks think the economy is overheating they will lift their assessment threshold for interest rates accordingly. All the big banks did this in Australia in 2018 to cool the overheating housing market - creating the equivalent of a credit crunch.
I agree, the ocr won't increase this year.
Not when rates have been locked in for many years and in any case interest rates could double and our mortgage would then be about the same as our market rent and there will be many households the same as us.
rates havent been locked in - orr only agreed to lock them for 12 months (12 months ago)
NZ has previously cut rates and then lifted them within 12 months. Case in point
July 03 - Rates were cut 0.75% over 3 months and by Jan 04 they were lifted - with a total 1.25% increase between Jan 04 and Oct 04
Apr-09 - Rates were lowered .50% - capping off a period of decreases of 5.5% from July 08 - Apr 09- Rates were then lifted by 0.5% in June and July 10.
All of these increases were a result of an overheating economy. too much inflation, rapid economic growth and low unemployment (excluding 2010).
People can say interest rates wont go up- but history disagrees
And with a wave of the wand I grant all of New Zealand ( well at least some ) an additional 43 Billion in housing wealth, and happily advise that since Corelogic data is not timely, further considerable housing wealth will be provided in the coming months.
Well you know where to invest your money then, don't you?
So state provided welfare to landlords over the past year is now $150,000-$200,000 depending where you live?
I don’t include owner occupiers as they have to buy into the same market so if you only own one home a rise or fall doesn’t (always) make a difference e to you.
Imagine what could be achieved if we just gifted $150,000-$200,000 to any other part of society.
This system is severely broken and has no moral backbone to stand on. History would suggest it won’t last very long.
$37 million every week in accommodation supplements - this is rent & mortgage subsidies. That was a few months ago so I wouldn't be surprised if it over $40 million a week now. This is all put on the taxpayers tab, onto the national debt for future generations to deal with. Looting in the now, and sending the bill to the future.
If I asked you the question, is your rent on the supplement you will incriminate yourself with the answer
Could you put a comma or something in the above sentence so I can understand what you’re trying to say? At the moment you’re incriminating yourself with the question (or is it a statement?)
Yes very obvious that you're getting the A supplement ... cant complain then
Haha oh right so your claiming that I receive the accommodation allowance! Haha nice one.
Why would you even feel the need to make that argument up? WTF. Its a bit sad that my views seem to threaten you so much that you need to make something like that up to make yourself feel better (honestly..)
I dont believe you one second ... after revealing youre a greedy capitalist living in a rental
Yes watch out for the greedy capitalist living in a rental! How scary....
We banned cigarette ads due to the harm they do to NZ society. So why do we not ban "one product advertising companies" like One Roof? They harm society more than cigarettes.
In last weeks One Roof podcast Ashley Church strongly argues there is no housing problem. Even somebody as ignorant and talentless as Ashely has probably been able to become fairly wealthy in this sick environment.
Jacinda handed out 50 million of your taxpayer dollars to NZME and their mates instead.
Aroha.
Oh yeah I forgot about that bail out last year. In a sick kind of way maybe One Roof is an indirect type of marketing and campaigning tool for Jacinda and Labour. Granny Herald is, that is for sure.
I don't know why Church is invited onto TV3 breakfast show as a 'Property Expert'.
This is like getting the Fox on as a 'Henhouse Expert'.
No one who is informed goes anywhere near the junk that is dished up on TV.
It's for the ill informed masses to lap up...
Because he is a property expert, as in he owns properties and has done so for a long time and he deals with property day in, day out, because he is the president of the property association. Would you rather have a baker or a dog trainer comment on property?
Yvil....my father has played golf every week for over 50 years. He has been a club president. But unfortunately his skill and knowledge of the game is woeful. Most dog trainers or bakers would play better golf than him because he lacks any talent whatsoever (in the game of golf). Many of the absolute worst poker players I have encountered have proudly told me they have been playing for 30 or 40 years.
Apparently, for the last decade Ashley has held the majority of his property investments in Christchurch. Now take a the look at the performance of Christchurch property last decade (compared to the rest of the country) and let us know what it tells you about Ashleys level of expertise.
Being president of the property association means that he is a biased commentator.
Exactly. An 'exper't is someone who will take a balanced and knowlegeable overview, this bloke Church is coming from one narrow perspective - that of a greedy property investor who wants the good times to keep rolling.
Exactly.
He's an advocate, NOT an objective expert.
No one said he was objective but dealing with property professionally makes him an expert nonetheless. He is no less objective than the majority of commenters on this site who would like house prices to go down because they want to buy one.
One would expect media to seek objective experts, not biased advocates. Journalism, after all, is based on objectivity.
Unless of course, journalistic principles have died...and they have.
Rubbish. He is a sales tool. His apparence on any MSM is promotion activity. He has one objective - keep volumes of trading high.so agents an clip the ticket. One roof is a giant marketing campaign.
We need to regulate the shit of of this industry.
Fritz...Even worse Ashely is a director of the Israel Institute. Anybody who is prepared to support a regime that imprisons children without trial, bans certain ethnicities from some Govt jobs, regularly flouts the Geneva Convention and has different roads for different people based on ethnicity has lost the right to any credibility whatsoever, in any subject they may choose to comment on.
Tom....And all 3 TV3 hosts lap him up especially Duncan Garner. In finance speak Ashley is actually the opposite of a fox. He is a hedgehog. How can anybody who has held the majority of his portfolio in Christchurch properties for the last decade be called an expert?, His personal track record is the evidence for what many of us suspected.
Well you know where to invest your money then IO, don't you?
Please tell us Yvil if you know better than Ray Dalio or Warren Buffet
What happened to your Austin Martin with personalised plates?
Tell us IO, if you know better than the Wiggles and Ali G, what happened to your claim of discussing topics rather than attacking others?
btw, an Austin Martin sounds awful
I was discussing the issue and you made it personal by asking where I invest my money. #hypocrite. Don't cry now.
Did you drive the Aston Martin with the personalised Yvil plates to the food banks, or is that not the image you want to portray to the poor people and your charitable nature?
This my friends is Orr's definition of 'sustainable house prices'...
NZ is rapidly turning into a hell hole - even with no COVID.
I can't think of anything witty or sarcastic to add. Just makes me want to cry, to be honest.
Cheers RBNZ. Cheers Labour. Cheers NZ.
I think we’re witnessing the fall of the ‘western empire’/western world. Our society is destroying itself from the inside out.
China standing by ready to lead the world in whatever direction it sees fit this century as our inequality and one part of societies complete disregard for another causes our downfall.
I truly believe given the option of hyperinflation/severe 'dysfunction in markets', vs a scenario involving interest hikes, debt defaults, sharemarket/property sell-off, bailouts - the central banks will choose the later, as at least money will survive even if it is scarcer. However if this really a case of controlled demolition of the monetary system by a termite-saturated takeover of central banks, well... All we can do is prepare
But they’re causing the latter every time they intervene - but just kicking the event further down the road and making it even harder to fix (and worse when it happens).
It’s not wise.
It’s like watching a junkie dismiss the fact they have a drug issue and pop some more pills and say ‘I’ll worry about my issues next week’
Yes and what happens to a junkie if they don't stop? Eventually the RB will stop when internal organs start failing and they have a near death experience
I posted yesterday that central bankers make me think of the French monarch before the revolution. Completely out of touch with the dangerous changes taking place in society.
Mary Antoinette - her many acts of compassion included tending to a peasant gored by a stag and taking in a poor orphan boy and overseeing his education. Our very own Mary Antoinette rescues lost bunnies
Here's a fact for you, my great great grandmother served in Marie Antoinette's court. Managed to escape France with her head intact, married a Swiss man, and got to London.
Perhaps better ref is to Madam de Farge?
Knitting at guillotine
A disturbingly memorable character. That book comes to mind far more often lately. We just continue to widen and entrench the divide, building up a tidal wave of bitter anger and resentment that will come down on us all.
That is very interesting! Hope you've recorded this interesting family history for the grandies?
What scares me is that democracy is failing - which in theory is what happened in Rome.
This - all revolutionary activities start at a point were some hards decisions and better leadership early on, would have solved the big train wreck down the line.
Interesting post dago, I'm of the opinion that the central banks will NOT raise interest rates (by a significant margin) because it will plunge countries in a proper, deep recession because of all the debt but we shall see...
It's just fucken sick. SiCK.
That's a good word for it. Makes me sick to my stomach. If only we could vomit and expel this lot. Though what would replace them..
Me too. Usually I'm happy to make some sarcastic comment about how 'great' our housing market opps I mean economy is thanks to several spineless governments but right now the situation is just too depressing even to make light of it. This is seriously sad and this Labour government had the chance to do something with the tax working group recommendations and other stuff on the supply side but they have epically failed. The RBNZ is a basket case. Just really sad for a significant chunk of NZ population.
The current government are mediocre phoneys and a disgrace to the history of the once great Labour party.
Likewise. I usually have a sarcastic comment in me, but I think I will logoff media today for my mental wellbeing.
I know northman, it's very disheartening :-(
The RBNZ gods have truly been generous.
oops, L3 announcement was suppose to coincide with the release of this data. Just as well there will be another announcement today to take the attention away from this crises.
Alot of talk about gains. A gain is only realized when the asset is sold. Until the sale proceeds hit your bank account, it's just numbers on a screen - an estimate of what you might be able to sell for at this point in time
People who understand the dynamics and psychology of a bubble understand the significance of that statement (and what it means in terms of the severity if/when the downturn comes)
Or monetize the gains by converting them into rent (buying rental property using equity).
For an individual purchase, yes. But NOT for the banks and the financial system. For them these paper gains represent REAL value, which can then be used to do something else with. If you are a property specuvestor, that means you can use the additional "value" to purchase a new asset. This leveraging makes the financial system unstable, because a slight correction and down comes all asset prices, the leveraged assets value disappears and everyone involved is in the s#%t. Including the banks.
It gives the entire financial system ponzi characteristics
"Alot of talk about gains. A gain is only realized when the asset is sold. Until the sale proceeds hit your bank account, it's just numbers on a screen - an estimate of what you might be able to sell for at this point in time"
That's just talk to make oneself feel less bad about missing out, it's rubbish though. By that definition, Musk and Gates are not rich at all because they haven't realised their shares, properties and business values into cash in the bank. Accounting 101 accounts for all types of assets as wealth
Are you comparing highly leveraged mom and pop real estate investors to Musk and Gates? lol
Accounting principals don't change wether you own 1 house or 1'000 houses, in both cases you don't have to sell the house(s) for it to count as wealth
You also don't need to sell them to realise a loss. But don't worry property is a one way market despite the interest rate safety net running out of room to go much lower.
If you want to talk about Gates and Musk and accountants. Their financial advisors would not have recommend they put all their eggs into one basket ie property. But rather to diversify and hedge against risk. In fact Musk has been selling his properties lately
Please won't somebody think of the poor property investors!! No capital gains tax, lowest interest rates in history, the central bank is printing money to shovel to the retail banks to pour into property lending. Yet you'll still find property investors whineing on here, and braying for "more supply". Of course they want more supply: they want to buy it using borrowed money, bung some renters in, and charge nose-bleed rents!
I do not know anyone (and I am a boomer) who is happy with this state of affairs. I own my own house but watching it go up in value gives me no pleasure at all. In fact I would like to see it fall in value and let young kiwis a chance to get on the property ladder. I like my house and will stay in it whether the price doubles or halves. So I am not impacted by house prices but it is so unfair to the young.
I suspect you are in the minority, unfortunately.
Our house has a 2017 RV of less than a million, similar houses on similar size sections in the area have just sold for over $2.3M.
I should be happy right?
Except the prices are now so detached from wages that it feels like the govt are on a fast track to burn the economy to the ground with the incessant pumping of this unsustainable Ponzi.
Surely his must end in either a giant crash from either a credit crunch or hyperinflation to clear the debt which of course destroys everyone's standard of living.
Either way what hope is their for our kids
We needed to address the housing issue around 2013 when it was possible to do so. But we’ve made our bed so now it’s time to sleep in it. And we can thank all those people who think their self interest (wrt to higher property valuations) are more important than the future quality of society.
Well, all the mugs kept voting for it with do nothing "kick the can" governments that are a bunch of spineless populists. We had an oppourtunity just a few months ago to vote different, to set a different track. Instead everyone voted for the same old same old and got the populist leaders we deserve. When the crash comes, suck it up. If you voted for the status quo, then you threw your own kids under the bus.
Yes Jacinda has turned into a complete flop and the problem is now that democracy is failing as no matter who you vote for in NZ - they completely change their positions on policies once elected.
I'll admit that I voted Labour mainly because of a lack of better option but I did also have some hope that they would tackle inequality by going after it's cause: NZ's rampant housing market. But JA, GR and co have been a massive flop in this area. I actually don't mind JA and GR personas but they failed to address the biggest plight on NZ society. It's a 'D' from me (not an 'F' as they handled the COVID thing ok).
Agreed. I voted for a small party. Just to shake it up if they made headway. Why vote in these clowns. Natbour, Labour, National.. They're all as bad as each other
.. To be fair though.. I don't think ANYONE could have reasonably anticipated that Labour would be anywhere near this hopeless
The borders opening to OZ is our kids hope...NZ the giant retirement village
Minority for sure.
A friend purchased a house in Dinsdale approx 7 years ago for 320k.Spent a bit of money on it,sold recently before reaching auction for 880k.
They are doing handstands.
It's a matter of perspective isn't it. When I read this my immediate thought wasn't good on your friend for getting money for jam, it was worry that the buyer of this property was a young couple or family who have leveraged themselves to the tune of $704k (or more if <20% deposit) of mortgage debt at a DTI of 7-8x just to get into an average $320k home that is 7 years older now. I'd find it hard to celebrate if that was the situation. This is the reason I haven't sold my house. I can't bring myself to throw our young under the bus just to get a few steps further ahead. Plus I like my house.
We bought our place in Hamilton 20 months ago for 400k, just had it valued and came back with 720. Which we are hearing is a low estimate... madness
While I am a millennial, I'm otherwise in the same camp. Very disappointed that it has been allowed to get this unbalanced. Merit and hard work are no longer being rewarded in this country.
Well said kiwi keith, I own several properties but I'm not happy with this crazy rate of inflation either
I totally agree with your sentiments but I'm troubled. Does no one see the financial (debt) wave coming? I sense it will beach this year or early next.
Mild indicators of a "turn" in market
More data still required
https://www.propertynoise.co.nz/wp-content/uploads/2021/03/Tony-Alexand…
Went to the auction house the other day. It seems that Audis and Mercs are not enough nowadays for our beloved RE agents. It's Ferraris and Porsches. And they all look so happy and content in their stripy suites. Hope they all paid the wage subsidy back (just kidding!)
I would love to see a bit of investigative journalism on the real estate industry and the wage subsidies. Unfortunately the real estate industry are big advertising customers (paid for by their clients) so probably won't happen.
It's no the RE agents' fault that prices are going up, they're just doing their job and yes a the moment their job is very easy and lucrative
No one is suggesting the housing crisis is the fault of real estate agents. Just making the point that many took the wage subsidy in a what has been a cracker year for many of them.
Well fluffybunny below is saying "they are 100% of the problem"
They are 100% part of the problem. It's the whole industry, including the MSM advertising element. We need more regulation. Please dear God Labour do something ffs! Anything!
My mate works in real estate and a decade a go he did many open homes where nobody turned up. Nowadays there is an absolute stampede at every open home with most houses sold within a few days of the first open home.
"The average value of all homes throughout New Zealand increased"
Wrong, just price may have increased. Value remained roughly the same if not lower since less people can actually access to them as a means of accommodation.
The Government should tackle this as an emergency, now. And BANNING investment on housing should be the minimum starting point.
b21 .
Correct. Price is what you pay. Value is what you get. Price has increased but its the same house. Nothing may have changed except perhaps some quick fixes & cosmetic , cheap makeovers to enable flipping. Value basically is unchanged. But, property spruikers happily obsfucate Value & Price.
b21....but if we do not have investors all the rental properties they own will immediately vanish off the face of the earth making things worse.
Give us a break with your ridiculous draconian trumpeting.
Banning all retirees and mum & dads from investing in property just so some FHBs can have the market to themselves?
Why don’t you have price caps while you are at it...
Get a grip.
How many rentals do you own?
IO...even his handle smells of gentry class, white priviledge.
Funny I get told that asking how many rentals somebody owns isn't a reasonable question for this site - despite the fact they want to spend their time throwing around housing ponzi propaganda.
The real Lord Dowding looks like a real GC.
Yes a very GC in fact a true hero who played a big part in why we can all talk, act freely and live in such a great first world country.
So how many rentals do you own?
IO. Hugh Dowding. Nickname: Stuffy. LOL
None.
And I’m of mixed Maori descent not that it has anything to do with this subject. Pathetic.
So how many rentals do you own?
Exactly, "just so some FHBs can get A home". Here's your break: Investors are not just mums and dads as you may seem to think, maybe in the neoliberal world of candy and jellybeans, but not in the real one, and they have already have the market for themselves for way, way too long.
Ah yes, the three groups that buy houses - FHBs, retiree and Mum & Dad investors.
Never mind the massive swathe of owner occupiers who can barely work with one house, who have to try and move around in a hugely over-heated markets to house their families and get them into schools worth going to. Totally invisible, apparently.
You are totally right, families moving homes should fall into the same category as FHB, just need to be careful with people using their home as a means of increment their wealth, since this may cause investors to funnel their money through this group.
Right, that is it. This is been going on for far too long (a decade?)
Time to break out of my normally meek mould and do something about this. Any one clued up how one can set up a lobby group to force the government to confront this issue? Letting off steam here ain't doing squat.
That lobby group is called - The Labour Party.
That's why they got elected with an historical MMP majority - to do as we'd elected them to do.
And look how that's worked out!
Nope. I'm afraid a lobby group of any traditional sort isn't going to work. Besides, it's far too late to enact sensible change.
The time-honoured way of sorting this mess out will be the answer. The one ultimately provided by The Market (that's 'us' as a lobby group, by the way!)
It doesn't matter now what 'stimulation' is given to subvert The Markets' final revenge; it's all pointless. It's only a matter of degree as to how bad the damage will be; when it happens and how long the carnage lasts.
Well done, Jacinda, Grant and especially, Adrian.
(Yes. I know you are only individuals; and poorly equipped one to tackle our problems, but you got the benefit of our collective experience with your election/appointment to help you - and, you've wasted it)
Well said. They had a mandate and they duffed it. Fix housing was the overarching message from their supporter base and they failed badly! I have no faith any other party will be better (except TOP but they'll never have the numbers because NZ voters love their cats). Labour was the last miniscule hope something was going to be done but they rolled over like all the previous governments. It's pointless now. Let the market end this madness.
Thanks for sharing. Good to see both sides of the same story.
Barfoots showing Auckland median up 25% in 2 years
Mental
The Nats denied there was a crisis for 9 years.
The opposition said their is a crisis for 9 years.
Who was right.
If what occurred under the Nats for 9 years was called the ‘housing crisis’ what the heck would you call the current situation, with house price growth going vertical & 22,000 living in motels!! They will have to invent a new word as ‘crisis’ doesn’t do it justice.
yeah forget the climate emergency, we have a housing emergency
The same opposition who got elected then managed to send house price increases on a near vertical trajectory and have very few ideas to stop it?
Passing the buck to RBNZ doesn’t really count as taking action either.
There are even wilder statistics hidden in the regional averages.
I bought a house in Te Kauwhata in April last year for $670,000, all the houses on our street are similar size on much the same sized sections.
House over the road from me sold in February for $1.1million, few metres larger house on a few metres smaller section but much the same specification as mine.
The regional average for the Waikato only shows a 9.5% annual increase but the reality is much, much higher if you take out the larger but dying towns like Huntly where house prices are reportedly falling by double digit percentages.
All of the recent sales in my street have been Aucklanders moving down as well, I’m not sure if Covid lockdowns are causing that and people with secure jobs are keen to live in the most northern town that doesn’t get locked down with Auckland.
And who are these Auckland refugees selling to, to go down your way?
Probably - no one. They're probably borrowing against the properties they leave behind to finance the relocation experience. And why wouldn't they, if House Prices Never Fall?
And in that one belief lies the trap......
What will a refugee have to sell for in your area if it all goes bad ,and they have to sell a property somewhere to pay their debts?
It's happened before and will again. It's just that we haven't seen anything like it here in our lifetimes and don't believe it will.
Remember Deer, Ostriches and Goats?
Sucks to be a renter
CONGRATS - You’re the most arrogant and insensitive commenter on here.
I wouldn't take any notice, there are some here with alot of skin in the game I bet, and are fearful and taking it out on FHB who they see as a threat. The nastier the comments, the more scared. If they were truly in an amazing secure spot financially theyd be getting on with their lives
They are actively trolling here. Reacting to them even just by pointing out their negative traits, will positively feed their ego and fuel their sense of entitlement. Worthwhile calling them out, but don't bother wasting any extra energy on them.
Agree. Best to ignore.
So a property investor with 1 average house just made over $20k in one month, tax free... While workers give up 8 hours plus of their day, to earn a salary that gets taxed heavily. The salary earner got $4k per month for their hard work and time, while a property investor with 1 house got $20k, for just having assets!!! Anyone else really F%$^n pissed off by this??
Everyone but property investors are, plus the property investors who are actually understand the economy also are.
Don't worry though, Labour is about to introduce another tax on incomes for the next tax year, just so they can bail out property investors a bit more.
And property investors have the nerve to pout and throw toys when people disagree with them. I don't mind those who have one or two as you almost need that for yr kids to keep up but some are total selfish pigs
You're definitely not alone. There are still far too few people willing to actually demand change though. There's a lot of commenting online, which instead of building a movement to enact change, is unfortunately just serving as a release vent into the void. At this point it seems we will have to be driven right off the cliff before real change can happen - and if we don't wake up soon, this could be used to build something far worse. I don't feel very hopeful about the decline I see all around us.
It is how Politicians and Bankers get their kicks...Fiddling while others work. Then Taxing the crap out of them as best they can.
$34100 increase in a month could be full year saly for some and this is happening month after month and still Jacinda tries to hide behind panademic and avoid the issue.
Real Shame.... Her smile is a farce..... Making fun of average Kiwi who voted her
Capital gains are nothing until realized, so the illusion may turn into disappointment when in order to sell your home you need to buy another one. The only ones really winning with this game are banks, the rest of us investors included are mere necessary idiots.
Once again doomsday prophets have cost their subscribers $21,000 in just one month. No other subscriptions commands such long and dear readership.
People, things couldn't be better!
The mortgage continues to be the bedrock on which this economy is built!
Cheap money and debt is king!
The "flip" has never been so flipp'in easy!
No need to study/work in NZ - just sit around wait to pass bright line, leverage further - guaranteed non-CGT income, outshine the need of salary through sweat equity.
https://www.stuff.co.nz/business/opinion-analysis/124418784/yay-and-boo…
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