The average value of New Zealand homes increased by $27,667 in November, according to the latest figures from Quotable Value.
After breaking through the $1 million mark for the first time in October at $1,002,153, the country's average dwelling value continued to climb to $1,029,820 in November.
In the country's largest market, Auckland, the average value climbed from $1,427,896 in October to $1,482,005 in November, up by $54,109 for the month.
Average values are also above $1 million in Tauranga $1,151,228, Wellington Region $1,080,618 and Queenstown-Lakes $1,592,274.
Over the three months to the end of November, average values have risen by between 2.7% in Palmerston North and 12.7% in Christchurch.
The table below shows average values in all main urban districts and their percentage changes over three months.
QV's figures are based on sales that occurred over the previous three month period, so the average value for October is based on reported sales that occurred over the three months to the end of October, the November figures are based on sales over the months to the end of November and so on.
In that regard they are a lagging indicator of prices and values, however, the strength of the value increases between October and November suggest prices are still very strong.
However, QV general manager David Nagel warns that market conditions are changing and the strong growth in prices that is underpinning values, is mainly occurring at the top end of the market.
"While the November numbers look extremely bullish, there are growing signs that this property growth cycle is starting to transition," he said.
"Real estate agents are reporting a significant upswing in listings, while open home attendance rates are falling.
"Some properties are being passed in at auctions, which was unheard of a few months ago.
"This isn't a surprise given rising interest rates, changes to LVRs and now a further tightening of credit rules from December.
"This has taken a number of buyers out of the market, just as stock numbers are starting to increase, which is resetting the supply/demand equilibrium."
Nagel also said it was the top end of the market that was showing the biggest value gains.
"We've broken the market down into quartiles to better understand which properties are showing the biggest increases in value, he said."
"In almost all cases the greatest price increases were occurring in the top 25% of properties by value.
"In many cases, this was significant," he said.
The comment stream on this story is now closed.
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157 Comments
Love it. Now for $10/liter for gas
Coffees 7 dollars
Oil prices have come back slightly.
The margins on takeaway coffee are huge, they just need to find efficiencies in the production process to cut out labour costs. It's unforgivable that a person still hand makes them one by one.
There are so many variables that affect the coffee, it is really hard to automate and get the same quality as a human. Barristas constantly adjust what they are doing, based on grind, speed of water flow, milk temp, type of milk, amount of aeration ect, to get the right consistency in the end, its really hard to get a machine to be able to react in similar ways. Good coffee is like art.
House prices have a long tradition of being resilient in NZ.
Growth in house prices next year is unlikely to match that of the last 2-3 years but prospects for a major downward correction are weak. The population is far too enthusiastic about property for that to be a realistic scenario.
TTP
The population is no different to any other.
Greed and fear.
It's going to be truly awful for those sucked in at the top when this shifts into reverse.
"if" this shifts into reverse. It will most likely flatten for a long time. If that's the case those who bought at the top will still be better off than those renting in a few years and then truely better off in many years time owning a freehold house
"House prices are the highest they have ever been, therefore, from now until the end of the universe they will always be the highest they have ever been. It's actually against the laws of physics for them to go into reverse, no matter what the future brings just because New Zealand is so special."
I don't know about you guys, but I feel honoured to be in the company of such intellectual giants.
Brock, you have been saying that for 3+ years in which time house prices have doubled.
Let's stick to the facts.
TeKooti just has stuck to the facts
House prices have not doubled in three years.
You'd think cheerleaders would know how to count.
Enthusiasm for property has not stopped housing crashes anywhere, in fact it's probably been a key factor in leading to them...
It's amazing how the words "housing crashes" yields so many upvotes… despite the fact it has not happened for over 30 years in NZ. People don't learn, they always seem to think "this time is going to be different"
Misery loves company Yvil.
It depends on your position.
It's pretty miserable for the growing number of people locked out of any potential to own their own home.
I agree HM. Predicting house price rises on this forum doesn't mean I think that's positive for society, but neither can I influence it. As a small, open, English law, temperate free-trading county we are a desirable destination and at the mercy of our far larger trading partners.
But we still could have done many things to mitigate the damage.
People mistake NZ property for a free market.
There's every chance the RBNZ and government will come up with new ways to keep the market up and enable young people to take on bigger debts to enrich older sellers.
35-40 year mortgage terms next? Not that long since we went from 25 to 30 year terms. More demand side price and rent subsidies to keep prices and yields up, perhaps?
If you read anything about previous house price crashes and their causes, you can see how much of a similar position NZ is in right now...
Yvil maybe the upvotes are an indication of the population you seem to know so well changing their mindset? "The population is far too enthusiastic about property for that to be a realistic scenario".
'Impossible' I know but just saying 😂
TTP
Well that long tradition only extends back as far as the The Great Depression of the 1930s. During those times the majority of Mt Eden's bungalows and villas were empty because the owners lost their ability to service their mortgages and were compelled to vacate their homes. This situation is not that far back...a one-hundred year event? My mother's family was renting a house in Cromwell Road, Mt Eden, at the time and she still remembers the empty houses up and down the street. (She's still alive and has her 98th birthday on Friday, so under strict Covid visiting conditions I'll be paying her a brief visit at her resthome. I'll see what she can still remember of the widespread deprivation incurred by the majority of the population during The Great Depression.)
I'd like to take the opportunity to thank the first Labour Government for providing the majority of our population with a life of relative dignity rather than taking the country into the general indigence and abasement experienced by the populations of basket-case countries like those colonised by Spain in South America.
I would also like to thank the current Labour Government and the RBNZ for preventing the country from sliding into another 1930's-type Great Depression, as would probably have happened under a neo-liberal right-wing government.
Rates remain low with no signal RBNZ will increase rapidly, land supply remains very tight and border reopening is coming. Prices are comfortably set for growth well into the first half of next year.
Sorry, Squishy, but with regard to your comments above, I like each espresso to be crafted by a single barista.
TTP
So in Auckland we have:
- declining population
- huge amount of building
- growing inventory
- rapidly rising interest rates
Why are prices going up? Greater fools?
Statistics. As mentioned in the article, average price doesn't tell the whole story.
Indeed.
Lot of properties being clamoured over by developers too. The Housing Supply Bill added further fuel to the fire, as properties as small as 500 square meters and as narrow as 16 meters suddenly became redevelopment opportunities ( 6 townhouses on these sites now rather than 3-4)
Anecdotal, but I am aware of two properties like this, which sold for circa $1.6-$1.7 million, before the Bill probably would not have gone for more than circa $1.3 mill.
Then add in a fair bit of FOMO from FHBs.
How many FHBs can afford 1.5 million need 300k just for deposit . If you just bought one at this price if the market turns ugly your 300k will be gone in six months.
Ohh.. Don't be a spoil sport. Market will never turn for kiwis. They are bubble proof and NZ government has lot of tax payer moolah to bail everyone out.
Just get into debt to your eye balls and do not worry about a thing.
Keep buying until cows come home. But any dilapidated shed for a few millions. Don't stop the party.
A possible scenario is Mr Orr and his successors will accept a period of elevated inflation (calling it transitory for the next decade). This will maintain some house price growth, but at a lower rate than over all inflation. Thus mortgage holders will not face negative equity, but will be asked to pay increasing interest costs. A lost decade for NZ.
Gotta keep it up at all costs. Investors cannot be allowed to face the risk of their own choices or be expected to pay their own debts.
HouseMouse - they are very brave as the Bill has not yet passed, and already its provisions are being whittled down.
Bi partisan support
Even with it whittled down still.offers big gains in development potential
The more I look at it, the more it looks like Ireland prior to their house price crash...
But it can't possibly happen here mate because... (and I'm sure the Irish didn't say that at any stage)
Yes, I've been looking at that too. Some similarities, but also a few significant differences as well.
A global pandemic, the worldwide property surge and strident domestic legislative counter moves being some of them.
The run up to the GFC was another thing to examine.
But they have this rise in "new builds" that happens near the end of the cycle. The best time to buy a new build is after it all tanks.
Except that new builds built at the peak of the frenzy when everyone was out to make a quick buck can be a nightmare: https://www.theguardian.com/world/2021/oct/07/blocks-like-weetabix-how-…
Personally I wouldn't buy anything built after 1990.
What are the significant differences Dave?
Does anyone here have good resources to understand the Irish property crash? is there a go to book
I lived and owned property and business in Ireland 2000 - 2007, its like deja vu living here in NZ.
The mood, opinion, or sentiment of the people is the most interesting bit, from a behavioral point of view.
- Huge debt bubble - Fire economy.
- Govt supported the debt bubble.
- Long term lowering of interest rates.
- Huge immigration, Ireland was building houses for immigrants mainly.
- Leading Irish Economists + the dogs on the street predicted the crash years before it actually crashed.
- It took 3 years to reach the bottom 2008 - 2011.
- RE industry talking up the market, always a story to raise FOMO levels.
- The mantra that Ireland was different, it could not crash, it had high paying jobs and a large manufacturing industry - factories make high end Intel chips, pharmaceuticals (viagra) which is true,
- NZ property price support stories; the world wants to live here, returned Kiwis pushing up prices bull shxt that people believe, mass immigration when borders open.
The only difference is that Ireland did not/could not issue its own currency, or manage its own interest rates.
McWilliams probably has the best take on the property crash and the economy in general but not sure which book of his is best to analyse it.
Here he is back in 2003 predicting the impending crash, some clear differences to the NZ outlook but some scary similarities also.
David Mc Williams predicts Ireland's economic downturn in 2003 - YouTube
And an interesting debate from the same show in 2003, a bit like the bulls and bears on this site
Yes, Williams was very vocal on it too before the crash, but greed plowed on ahead and made big money and some lost their shirts, some still paying back a lifetime of debt.
Take a look at yesterday’s Barfoot and Thompson auction results. If it is repeated today, the prices will only be going one way and it’s not up.
I almost felt sorry for the auctioneers. Seems the market to buy houses to live in / tenant (versus demolish) has tanked. Most of the sales were for redevelopment potential and a few at the top end still selling. Must have been a 25-30% clearance rate yesterday.
Trust that the reserve bank and governments will not be willing to let housing fall. That's what people have learned so far. There's no better investment than one that's taxpayer-subsidised, tax-privileged, and protected from risk by govt and reserve bank.
All planned JimboJones ......Jacinda and her band of socialists will open the doors wide, to at least 150,000 new immigrants as soon as covid tapers away .....there's your demand back .....with cheaper labour ....wallah ! ......problem solved .....and most importantly Labour gets back in ! ......while all the new immigrants will gravitate towards Auckland .....the "born in NZ" will continue to move out of Auckland ....... rinse and repeat ....
If it's socialist to run high immigration then Natbour are both socialist.
Both heavily into wealth redistribution, I guess...fair call.
Use of the term 'socialism' is often just 'thing I don't like' in many cases
A grand tradition with both "socialism" and "communism", really. Since even before the days of "racial mixing is communism!"
Agree.
Socialism is the go to for when you don't like something Labour does. Neo-liberalism if National are being annoying.
Both are neo-liberal centrists, with slight flavorings of 'left' or 'right' sprinkled on respectively.
They are both vested in maintaining the status quo.
Although plenty of folk on the Left criticise Labour for being neoliberal.
https://thespinoff.co.nz/politics/11-09-2017/shes-a-fast-talker-comrade…
Yeah... Nah. Central leaning politicians are not leaders of youth socialist movements...
... we should ask Bernard Hickey ... he's a wizard with making predictions ... except about the future ....
Nevertheless ... at a time of record house prices to income ratios , we better remember the most infamous words in the investing world : " This time is different ! "
.. no , it ain't ...
Speaking of making predictions...lets recall your one on covid...just the flu and all over in a few months..?
The market has already changed IMO. Leading indicators at least in my area of the North Shore (BeachHaven, Birkdale, Birkenhead etc) are:
-more houses than usual on the market
- big increase in the number of listings for new townhouses and apartments (many where the developer is selling multiple lots via a single listing),
- many more properties are being passed in at auction
- more listings with a price or ‘by negotiation’. Also seeing listings with price reductions.
- Agent behaviour has changed
Watch out regional cities once the Aucklanders can escape their lockup next week - prices will soar.
They have been allowed to move the whole time. Not sure many would wait till the end of lockdown.
although I can’t see much reason for people to stay in Auckland any more, with covid it has all the disadvantages of a big city and none of the advantages. And govt way too slow to fix the infrastructure that was broken through excessive migration; where is the public transport, new hospitals, etc? They haven’t even started building anything.
Infrastructure projects in Auckland are just business case-study make-work schemes for Wellington paper-shufflers.
They don't deal with the traffic or ED rooms or housing here so it's out of sight, out of mind, and they get paid either way.
The worst part is that we have Labour that cant build anything and National that just want to build stuff from 1967.
Well put!!!
Interesting hearing Bridges on what he thinks National should focus on, one of them was roads (didn't mention PT or alternative modes of course). Have they not heard of climate change? They may as well build some coal power plants while they are at it.
Hard to know who to vote for in the next election, I was thinking greens but they want Auckland to be locked down forever so I have to rule them out too. Maybe Labour's slogan should change from "Let's do this" to "Not quite as bad as the others"
I voted Greens last time. Not because I think they are very good, but because they are the least bad option.
Voted Green a number of times in the past. It's not about what they would do if they ran the government (because they won't get that many votes, and I'd also be against many things they would want). It's about trying to push the focus of the government further in a desired direction. TOP is the same for me last two elections. If you want things to change, you have to vote for those who are advocating some. You might choose to vote AGAINST National or Labour, but its absolutely pointless voting FOR either of them.
Yeah, anyone concerned about what we leave to the next generations doesn't really have anything to vote for in National and Labour.
Voting for the Greens is voting for Labour, given they have ruled out working with National and rendered themselves politically castrated and unlikely to ever get any serious concessions. If they're that politically dumb then how far can you trust anything else they have to say, most of which is lofty blue sky feel-good bullshit anyway?
how far can you trust anything else they have to say, most of which is lofty blue sky feel-good bullshit anyway?
Well, I voted for John Key when he campaigned on productivity...how's that any different? Talking the talk on productivity turned out to be "lofty blue sky feel-good bullshit" and now Luxon's another property investor talking the same talk.
If not Greens, TOP. Throw the kids a bone. I suspect though that Greens - if they can grow their cojones - will become a more important party over the next decade as climate change impacts and efforts become more pronounced everywhere.
I'm surprised there are so many Green voters commenting on a site dedicated to finance. Why not focus on a site dedicated to the environment?
Maybe because without an environment there is no finance?
Com'on that's just silly, it's a fair question, why doesn't an environmentalist comment on a website focused on environmental issues?
Whose to say they don't? I'm not aware of a law that prevents people from commenting on more than one website.
How do you know they're not?
I'm not an "environmentalist", merely a member of society who realises it makes zero sense to have a narrow and singular view of issues.
And financial and monetary policy is an important factor in the environment anyway, and vice versa. See debate on water quality vs profit, and who should bear the cost of declining waterway quality.
Surely an architect is aware of the interplay of environments and economics.
In case you haven't noticed, a large proportion of articles on this website look at social and environmental issues, as well as economic.
After all, all those dimensions are inter-twined.
Because people can be interested in more than one issue at the same time? It's hard to believe you are serious when you ask a question that has such obvious answers.
Maybe because interest.co.nz actually lets the conversation flow and allows a genuine exchange of views. I've noticed that on other websites a controversial article will have no comment space while a puff article will be open for comments. Maybe on environmental websites non-woke comments never see the light of day.
Also some of the commenters here can be quite witty or unwittingly amusing at times. When there were technical difficulties and comments weren't available a while back it was a bit dull. Still good articles but I like to see what the response to the articles is like.
David McWilliams has an economics website that used to be a blog with comments. I think he got sick of the repetitive and insane nature of some of the commenters there so he just canned it and started a twitter feed. Nowadays I visit his site much less often because it's just less interesting without his audience's input.
Good point.
If Greens support can get up to the 12-15% range, and Labour is reliant on them for power, then yes it starts to push Labour is a slightly different direction.
And as you say their nuttier ideas won't go anywhere.
If the Greens focus was the environment that would make sense but the crazy social policy is a hard no. NZ needs a dedicated environmental party.
NZ Greens needs to = German Greens.
Are you aware humans used roads for thousands of years prior to motor vehicles? It's how most of us get around!
Greens and locals do not want development of new chum beach and headland. Fair enough. Nonetheless now that they have secured a big property, they talked about having a road in there. How hypocritical is that
Have you got a link to that housey?
After all the battling that seems $&#@'n crazy!
Grahame Christian stated he wants to see "access developed". That nasty development word suddenly isn't nasty when the nimby opposers have control... a positive "development" lmfao
World-famous New Chum headland safe from developers after being bought by New Zealanders | Newshub https://www.newshub.co.nz/home/new-zealand/2021/12/world-famous-new-chu…
People also lived in smaller, more intensified housing for thousands of years rather than investing tremendous amounts in massive roads everywhere because NIMBY. We always need balance and evaluation of costs - and who bears them - vs benefits.
I dont know about that. Apparently public servant costs have risen 35%, and 60 of them "earn" more than 400k (up from 35). Didnt catch the time frame this was referring too, but think it is the last 12 months.
If thats not building I dont know what is.
The New Zealand peso is not worth what it once was...
Yes - Agents already have a significant number of Aucklanders or ex-Aucklanders actively looking to buy or buying in Chch, Napier, Tauranga, etc.
With a buoyant job market everywhere why wouldn’t you sell for 1.8 in Auckland and buy for 900k-1.1 in a more pleasant environment?!
I don't know mate, at least the traffic on the roads flows a lot more smoothly these days!
Prices will never come down because kiwis love owning houses. People just like things which go up.
If people believed in the government and they thought their retirement is secure, they wouldn't buy houses at irrational prices. But no one believes that NZ government will be able to support them in retirement, so they do their own investment. What else is there in NZ to invest in expect houses.
The biggest asset of this country is immigration, only real means of growth. So new immigrants need houses and if you own a few, you make millions along the way.
We must be picking the best immigrants if they can afford million dollar houses at 5%+
They will rent your investment houses mate. You will make money with someone else's misery and you will feel good about it. That's the NZ culture.
The rent wont even pay the interest on the mortgage, so they might not be feeling that good about it.
Who cares if decent capital gain keeps being made.
That's what it's all about for most 'investors'.
Rents cover the vast majority of the expenses and when there’s more than a $50k gain last month alone that is tax deductible on any interest expense, somehow I don’t think they would have any of your concerns.
You are talking about the past.
Assuming 5% interest rates in the not too distant future, just the interest on a $1 mil loan is $50k a year. Hard to see how rent - tax - expenses can cover that 50k.
Yes if the capital gains continue it is obviously worth it. But why would they continue?
'But why would they continue'
Because that's an irrefutable, universal law and it's never happened in NZ.
Sarc on
You need to own a business that is housing related, sells housing related product, this way you get to extract all the bigger fools cash without any of the debt.
In Auckland last month average house price rose by $13000 Per week and still RBNZ and government focus not on data but on expectation which is given wind so that no action is taken to control and are successfull.
Well as long as they don’t act when it’s coming down at 13k a week.
That's when they rock out the "path of least regret" line to shovel billions into the market again.
It's going to be very interesting to see what this country looks like in ten years time.
Agree.
I'd say even 5 years could be very revealing.
An awful lot could happen within 10 years.
What happens when the big one hits Wellington? Not saying it will be within 10 years, but just putting it out there. It's going to happen one day, there's at least a reasonable chance it could happen over the next 10 or so years.
The big one hitting there will make Christchurch look like child's play.
Have the hospitals in Wellington been upgraded and scaled for this event? Just as hospitals were for the inevitable pandemic - Sarc
Or what happens when the Alpine fault goes?
Have the government thought about these much further than at a superficial level?
But more to your point Brock, what will the socio-economic landscape look like?
Who knows, but likely that it will be more unequal than now, there will be more crime etc.
I don't know if a house price crash would much change that trajectory, it might moderate it, and at least give this little nation of increasingly self interested people a very good lesson that won't be quickly forgotten, just like the sharemarket crash of the 80s.
More homelessness, more crime, more calls from the blithely ignorant for them to be locked up or put in slums to "deal with the problem" our own selfish eagerness to live off the debts of others has created.
A nation of millionaires who can't afford a block of tasty cheese.
But if you buy the pams grated tasty packs you get a whole lot of air so feels like it goes further even if gm price way higher than block.
I think NZ's fate on that time scale will mostly be determined by the cost of oil.
If it get's significantly more expensive (which I think is more likely than down or stable) we end up a very expensive source of food and tourist destinations, which points to the wealthy starting to move into well guarded compounds and a desperate govt looking for ways to tax them as much as possible without driving significant capital flight.
Hastings district shoots past both Napier and Hamilton into 5th spot on the leaderboard. A whole lot of people in new houses in Havelock North feeling mighty smug and driving expensive vehicles, loaned against the house of course.
New builds asking $1.8M+.
I may have just received a sub-CPI pay rise after not getting one at all last year, but at least my property is rich RICH RICH!!
If Havelock North was its own district without the house values of Hastings proper and Flaxmere in the mix, it would be right up there with Auckland and Queenstown, I should imagine.
Estimates suggest around $1.3M, so not far off, yes. Plenty of Wellingtonians and Aucklanders moving up/down over the past 10 years for a better lifestyle, and remote working is commonplace. The move used to come with the bonus of a much better house for one's money, but that gap is rapidly closing.
How are the hospital facilities down that way?
HB hospital is full of "honest triers" but they're about as under-resourced as any other public facility. The place is used as a stopping point for doctors and specialists on their way to "real" hospitals like Auckland and Wellington. My daughter was born in HB and the staff were fantastic. The maternity suite was far more peaceful than the assembly-line style of Wellington hospital.
Plenty of health centres around, one private hospital, and another one being built.
In short, like anywhere, go private if you can afford it.
(Edited for non-paywalled linked article.)
HB Hospital is, in my experience, not great. I've had an ongoing issue and have been to see specialists at HB Hospital. 7 months since I first presented, multiple visits to multiple doctors, 7 different rounds of blood tests and still they don't know what the problem is. Wait times in ED are often said to be VERY long. Needless to say I am not very impressed. That said, is it any worse than other regional hospitals? Probably not.
A bit of an issue for those selling up from major centres to move to cheaper centres, you'd think. But what's the bet we mostly keep voting for tax cuts and no taxes on property, and keep running our healthcare lean despite an aging population.
That’s NZ healthcare in general. They don’t have the volume of patients and as such lack a lot of expertise and are usually reading the manual as they go.
NZ has very few top level surgeons and professors who are world class experts compared to overseas.
That’s why it’s more important than ever to have the best international medical insurance you can afford which will cover you to take elective treatments and surgeries overseas.
You certainly can not rely on Pharmac to fund you a life dependant drug either.
Celtic tiger of the south pacific?
One trick pony of the south pacific
We’re at the top of the mountain have a good look as a storm is coming fast in the way of interest rates inflation and devaluation of NZD this will be the first time a lot of people and investors have seen this in NZ, the more experienced people are already selling what they can. A lot of the people stopping at the top to congratulate themselves won’t make it to base camp.
This is crazy.
One person annual wages in one month in Auckland.
Wait and Watch Mr Orr.
How do this people in power still justify the madness. Under pressure they do mention but do nothing instead whatever steps they take to help FHB ends up benifitting the ponzi.
We do comment but forget that likes of Jacinda Arden and Orr represent a particular class and for rest are ready to throw dole/bread to silence them..
This news / data should compell them to change their approach and act and act fast like DTI.
You right it is crazy, but I think it’s the last drink at the bar
This is the stockpiling before happy hour ends.
The rest of the night is downhill.
Been saying that for the last 3 years and the keg never empties.
Yeah Nz is now a 24hr pokies bar!
Cool analogy! The longer the party goes on, the closer it gets to empty. Shame you can't tell how empty it is just from looking at it. It's always a shock when the barman says 'sorry all gone', you better have a pint of water mate, to try ease the inevitable hangover you'll feel tomorrow.
Current average prices is not the firm value of All houses in nz. Just the few that are currently being exchanged this month.
Meanwhile just 20 of 87 lots auctioned in Auckland yesterday sold.
Purely because buyers can’t go unconditional at present.
However once the bank is approached with a property and a offer the finance comes through and they get settled.
If you don’t believe me then track it yourself.
Lord Dowding…can I ask you a question?
Do you believe the last 12 months of capital gains has been good for equality and society as a whole. Just curious on your opinion? Cheers Tom
No.
But I’m just reporting some facts people might like to take into account.
Meanwhile in Lower Hutt - 50% of houses currently listed have a price ie are not price by negotiation or listed as auction/ tender (this time last year only 5% had a listed price) and 30% of those with listed prices have reduced their prices since listing by an average of 47K - including one which has taken a whopping 160K off the listed price.
Add to that over 37% have been on the market more than a month.
That doesn't sound like an "unconditional problem " to me - that sounds and looks like a market turning.
I only track Auckland and the settled prices seem well above what they were a month or 2 ago. There’s nothing staying on the market for long unless it has obvious issues.
ikimpaul is referring to what is happening in the market now. Deals done 1 or 2 months ago are settling now. More and more houses are now starting to be advertised with a price. Shock horror. Then that price is being lowered when the house dose not sell. Once you make the decision that you want to cash out your capital gain. You give your tenants notice and dress the house for sale you are at least partially committed to the process. But if you didn't make that move already a couple of months ago. You might have to get your hair cut a bit shorter or try and get some tenants back in to reshore your finances. What is your house worth today? What someone would pay you for it today.
Lord Dowding - Aren’t banks doing pre- approvals any more? Most buyers at auction rely on pre- approved finance from banks. In order to bid, buyers just need to get them the property details to the bank to check they are ok with it. Has something changed around this recently?
Process hasn’t changed but the means of getting the approval and settlement has and as such auctions are not as effective as before.
Just checked this mornings sessions that started at 10am. Sale rate to 12.20pm:
- Highbrook Room 1 - 45%
- Highbrook Room 2 - 27%
- The promenade - 13%
- Central Auction Rooms - 37%
Looking a little subdued so far....
My wife works in a Re office. Says people are coming in already looking to sell quick due to not being able to afford interest rates.
Couple of months of those clearence rates and things will get real interesting.
Have our deceitful leader have said a word about it in the last year.
No, because she didn't saw it in her neighborhood. Can't say National can fix it their leader himself is a property investor.
We are left with no choice accept it or leave NZ.
Sadly, Luxon has turned out to be a NIMBY property investor who doesn't want to see prices come down materially. John Key all over again...talk the talk on productivity but unwilling to make investing in productive work more attractive than investing in property.
Sadly we are left with Nincompoop administrators all over the place, have no choice.
Natbour will only lead us to a property boom and more pain to average Kiwis, NZ is not a nice place to start a family anymore.
Natbour, nice. They are pretty close to being one and the same
Barbour is expensive British Clothing.
And Tweed is the inversion of Trickle Down
It's only a good place to raise a family if your household income is at least the high end of middle.
Once upon a time NZ was a generally good place to raise a family even if your income was low- medium.
High-medium on dual incomes and you never get to see your kids.
Why not?
Most mortgages require at least two full time jobs, often as well as additional financial support from family also working full time jobs.
Good, I'm selling
NO! HODL that property! You can make even more if you just hold on for the top!
Both major parties seem complicit in protecting the banks profit margins ahead of the interests of kiwis who actually work and pay tax - aka the financial engine room. Labour has just been National lite - Rose if you will. The only option for the Kiwi battler that is working and getting shafted by all this is to vote in the proposed tax base change proposed by TOP, or, export themselves.
Reset or Hyperinflation. What will be Orr's and Robertson's legacy?
"What will be Orr's and Robertson's legacy?"
In a word : Kaaaarrrkkk !!!
Hopefully Brock and his ilk will finally read this article and get it! If they spent half as much time researching the market as they did writing DGM essays on this website would be in a much more prosperous position.
Got it! Classic Minsky bubble.
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Great job Labour, you guys are really getting on top of this housing bubble, it must have been because of the 9 years you spent moaning about it when in opposition, that helped you come up with such a great strategy to deal with it.
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