The New Zealand property market remained tight in January as new listings maintained their traditionally low levels for summer, while asking prices rebounded to near record levels on the back of continued seller confidence and no ease in buyer demand.
Data released today in the NZ Property Report – a monthly report of housing market activity compiled by Realestate.co.nz – showed 8,849 new listings arrived on the market in January – a lift of 4% on levels recorded in both the previous month and at the same time last year.
Paul McKenzie, a spokesperson for Realestate.co.nz, says that while January’s numbers of new listings always tend to be low in comparison to the rest of the year, buyer interest in property for sale has never been higher.
“In the last three months, we’ve seen around 30,000 new listings come onto the market, which is equivalent to the same period a year ago. However, sales have been up 30% during the same period, which has kept the market very tight,” says McKenzie.
McKenzie also notes that in January the Realestate.co.nz website received its highest ever traffic in a one month period, with more than 1.5 million visits to the site in the last month, indicating that there is an increase in interest of the property market, and demand for homes.
With buyer demand for property remaining high, these new listings did little to significantly shift the current low levels of inventory, which rallied only slightly to 28.7 weeks – well below the long term average of 39 weeks – indicating the market remains firmly in sellers’ favour.
Seller confidence was also reflected in the national average asking price, which rebounded to a level near previously recorded highs, topping out at $440,507 (seasonally adjusted), which represents a 4% rise from December and a 5% shift up on the same time a year ago.
“Auckland also saw its average asking price top $600,000 for the second time on record, while Canterbury’s average asking price tipped the $400,000 mark for the third time in the past 12 months,” says McKenzie.
McKenzie says that with no foreseeable abatement in buyer demand or seller confidence, strong asking prices in the main centres will likely continue well into 2013, especially as February historically sees high numbers of new listings coming onto the market.
“We know that people tend to get their homes ready for sale in January and put them on the market in February. With the number of potential buyers still actively seeking homes, we can expect a very active market in the months to come.”
Jane Turner, a senior economist as ASB made the following comments:
New property listings bounced back in January, following an outsized fall in December. Nonetheless, the number of listings remains low. In addition, total housing inventory failed to pick up in December, which suggests the number of new listings remains insufficient to keep up with demand. Low levels of new house listings reflect low levels of construction. The recent pick-up in building consents, particularly in Auckland, is an encouraging sign.
We expect an increase in housing construction to help alleviate some of the pressures in the market, particularly in the areas where supply constraints are most acute such as Auckland and Christchurch. Low supply of new housing, in an environment where demand is lifting as household confidence gradually recovers, will continue to place upward pressure on house prices. We expect house prices will continue to lift over 2013, with gains continuing to be led by Auckland and Christchurch.
Implications
Low levels of supply points to further increases in house prices over the coming year. At the January OCR review, the RBNZ displayed more concern around recent developments in housing and credit. We expect these trends to continue over the coming year, which is likely to cause more discomfort for the RBNZ.
We continue to expect the RBNZ to leave the OCR unchanged until March 2014, due to the subdued inflation outlook. However, we see a small but growing chance the RBNZ may use macro prudential tools in order to ease housing market and credit demand pressures.
Housing inventory
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43 Comments
The property market is booming - Yawn - not really news anymore is it?
DOW near 14000 - hows that - also boring.
NZD is through the roof - holiday in Honolulu or NYC?
More interesting - finance is more interesting when it has practical application - how about an article on FX movements and where we can checkin to 6* hotels with our overvalued pacific pesos?
SK
With ever increasing costs being layered on New Builds i cant see any reduction in house prices coming.
incredibly low construction numbers of lower quartile affordable homes will only compound the problem as higher priced larger homes are the residential construction mainstay.
Increases in Labour, Materials, Transport and the Regulatory Process are a continuous rachet up wards on the Housing Product.
Has anyone heard that Concrete, Glass, tin, timber, labour costs, the regulatory process and finance costs are going to drop?
So if you think houses are expensive now , just wait till tomorrow.
If this Government was serious about building a thousand homes a year for the next two years it would be underway tomorrow with a section purchase scheme from developers across the country. i'm picking another quick 6 month report into "the building of Affordable Homes" looking for completion about November, ish.
When the Home and Housed Report 2010 was written the median House price was $352 , when the Productivity Comission enquiry into Housing Affordabilty began 2012 the median was $369, the median last Friday was $389,000, one or two more reports and NZ could hit $400,000, thats $50 grand more than when all the reports kicked off.
Also if the Govt intends to build a thousand homes a year, what Govt department is going to co-ordinate this mamoth task? even at $350 per house a budget of $350 million would need to be allocated imediately to secure section stock and programme a labour force.
The lag in delivering the Housing Product is approx 6 months per home for the residential construction phase, the section however can take years to convert from Residential land into a standing subdivision. In most cases restrictive covenants will prevent smaller homes being constructed on the subdivision, certainly not two dwellings.
With there being about $45 000 in Gst on a new build with the value of $350,000you would think the Govt would seed investment into the construction of the Affordable Housing Product especially with the amount of employment it also creates.
This may prevent the young aspirational New Zealanders from leaving to Australia in their droves were they can apply for the first home owners grant that stimulates the Australian Building Sector, now staffed with about 7000 kiwi builders.
Nail. Head.
I`m one of those you mention, and my canadian GF thinks the asking prices for some of these poorly designed, cold, damp boxes is ridiculous.
So we`re building instead.
According to my estimates though, our house may cost more to build than what it`s actually worth.
How the f*ck does that work??
An overvalued re-rating in the Economist's Big Mac index.?
The most overvalued currency (by 107.9 per cent) was the Venezuelan bolivar, where a Big Mac costs the equivalent of US$9 in the South American country.
And then hope like hell a socialist government gets into power to attract the likes of Goldman Sachs to oversee the reversal of this government's privatisation efforts. All will no doubt benefit.
Since taking office in 1999, Hugo Chavez has spread his socialist revolution in Venezuela by seizing more than 1,000 companies. For bondholders that stuck by him, he’s also delivered returns that are double the emerging- market average.
The 681 percent advance, equal to 14.7 percent annually, has enriched investors from OppenheimerFunds Inc. to Goldman Sachs Asset Management LP that counted on Chavez’s willingness to siphon the country’s oil wealth to pay its creditors in the face of start-stop growth and falling reserves. While his policies drove away enough investors to keep Venezuela’s borrowing costs over 12 percent on average during his tenure, or 4 percentage points higher than those of developing nations, he’s never missed a bond payment.
??
Can you point to any time over the last 30 years when there has been a tidal wave of NZ people coming back to NZ?
Once they have been there 2 years it is pretty unlikely they will be back.
Never mind BigPropertySpruikingDaddy - The NZ Government is going to keep the welcome mat out for any potential rich immigrant like kim dotcom who can fog a mirror.
And, of course, all the NZ people like the ones mentioned in this article are going to be clamouring to return to NZ where they can work for 1/4 of the income they could get in Australia...
Lets think since you never do past what suits you, why would they have pockets full of money? from what Ive seen many have bought in OZ and with a dropping market and maybe no work are going to be broke and maybe seriously so, maybe neg equity.
The ones that have had to go to oz to work probably kept their houses here and have been paying a mortage already aiming to come back (I know a few) so no change.
Or even if they have some $s, they come back here to what job? hardly a great bet for the bank.
If their economy slows what makes you think ours will not?
regards
100% on the money Steven
Many ex pats in the UK are astounded at the price of Housing and general living costs.
They read the papers and follow the news, High Unemployment and Rising Hosue prices as headlines doesnt encourage those that have saved a little to return.
What would happen if 100,000 kiwis returned, Higher unemployment and even greater competition for what little housing stock is available.
GBH - and if mining goes belly up the NZ mortgage holders will bellow like weaned calves at the Government for help and assistance. Have seen and heard it all before.
PM Key needs to remove the WFF immediately and address the issues of Public Servants and Conflict of Interest. All PS should have to make annual return under the Oaths and Declaration Act of any investments they hold world-wide to ensure that they are not pushing policy for personal gain.
The RBNZ should be taken to task on what is essentially a conflict in Policy objectives. When the RBNZ wants Foreign Investment to improve productivity and is also viewing LVR's as a property taming device NZ has problems. Home ownership for NZ's will decline.
The Duke it is the system that is faulty.
A normal purchase is between two parties with the parties determining the value to be paid. In the case of mortgages it has always appeared that the bank is the 3rd party supplier of the funds so the buyer is in the position to buy the property or goods. The banks have been able to position themselves as the 3rd party because the seller wants their money for the property they are selling. Unfortunately the values of property have been distorted by this 3rd party. The seller wouldn’t be able to achieve the price on the property without the banks 3rd party presence. The question that now arises is what would the real value of property/land/houses or any mortgage instrument be if the market distortion of the banks presence hadn’t been able to take place?
What is a Bank Loan ?
“The issue which has swept down the centuries and which will have to be fought sooner or
later is the people versus the banks.” Lord Acton
MORTGAGE SUMMARY
Borrower Signs the Bank’s Loan Contract and Mortgage
Borrower’s Signature transforms the Loan Contract into a Financial Instrument worth the Value of the agreed Loan Amount
Bank Fails to Disclose to Borrower that the Borrower Created an Asset
Loan Contract (Financial Instrument) Asset Deposited with the Bank by Borrower
Financial Instrument remains property of Borrower since the Borrower created it
Bank Fails to Disclose the Bank’s Liability to the Borrower for the Value of the Asset
Bank Fails to Give Borrower a Receipt for Deposit of the Borrower’s Asset
New Money Credit is Created on the Bank Books credited against the Borrower’s Financial Instrument
Bank Fails to Disclose to the Borrower that the Borrower’s Signature Created New Money that is claimed by the Bank as a Loan to the Borrower
Loan Amount Credited to an Account for Borrower’s Use
Bank Deceives Borrower by Calling Credit a “Loan” when it is an Exchange for the Deposited Asset
Bank Deceives Public at large by calling this process Mortgage Lending, Loan and similar
Bank Deceives Borrower by Charging Interest and Fees when there is no value provided to the Borrower by the Bank
Bank Provides None of own Money so the Bank has No Consideration in the transaction and so no True Contract exists
Bank Deceives Borrower that the Borrower’s self-created Credit is a “Loan” from the Bank, thus there is No Full Disclosure so no True Contract exists
Borrower is the True Creditor in the Transaction. Borrower Created the Money. Bank provided no value.
Bank Deceives Borrower that Borrower is Debtor not Creditor
Bank Hides its Liability by off balance-sheet accounting and only shows its Debtor ledger in order to Deceive the Borrower and the Court
Bank Demands Borrower’s payments without Just Cause, which is Deception, Theft and Fraud
Bank Sells Borrower’s Financial Instrument to a third party for profit
Sale of the Financial Instrument confirms it has intrinsic value as an Asset yet that value is not credited to the Borrower as Creator and Depositor of the Instrument
Bank Hides truth from the Borrower, not admitting Theft, nor sharing proceeds of the sale of the Borrower’s Financial Instrument with the Borrower
The Borrower’s Financial Instrument is Converted into a Security through a Trust or similar arrangement in order to defeat restrictions on transactions of Loan Contracts
The Security including the Loan Contract is sold to investors, despite the fact that such Securitization is Illegal
Bank is not the Holder in Due Course of the Loan Contract
Only the Holder in Due Course can claim on the Loan Contract
Bank Deceives the Borrower that the Bank is Holder in Due Course of the Loan Contract
Bank makes Fraudulent Charges to Borrower for Loan payments which the Bank has no lawful right to since it is not the Holder in Due Course of the Loan Contract
Bank advanced none of own money to Borrower but only monetized Borrower’s signature
Bank Interest is Usurious based on there being No Money Provided to the Borrower by the Bank so that any interest charged at all would be Usurious
Thus BANK “LOAN” TRANSACTIONS ARE UNCONSCIONABLE!
Bank Has No True Need for a Mortgage over the Borrower’s Property, since the Bank has No Consideration, No Risk and No Need for Security
Bank Exploits Borrower by demanding a Redundant and Unjust Mortgage
Bank Deceives Borrower that the Mortgage is needed as Security
Mortgage Contract is a second Financial Instrument Created by the Borrower
Deposit of the Mortgage Contract is not credited to the Borrower
Bank Sells the Borrower’s Mortgage Contract for profit without disclosure or share of proceeds to Borrower
Sale of the Mortgage Contract confirms it has intrinsic value as an Asset yet that value is not credited to the Borrower as Creator and Depositor of the Mortgage Contract
Bank Deceives Borrower that Bank is the Holder in Due Course of the Mortgage
Bank Extorts Unjust Payments from the Borrower under Duress with threat of Foreclosure
Bank Steals Borrower’s Wealth by intimidating Borrower to make Unjust Loan Payments
Bank Harasses Borrower if Borrower fails to make payments, threatening Legal Recourse
Bank Enlists Lawyers willing to Deceive Borrower and Court and Exploit Borrower
Bank Deceives Court that Bank is Holder in Due Course of Loan Contract and Mortgage
Bank’s Lawyers Deceive and Exploit Court to Defraud Borrower
Bank Steals Borrower’s Mortgaged Property with Legal Impunity
Bank Holds Borrower Liable for any outstanding balance of original Loan plus costs
Bank Profits from Loan Contract and Mortgage by Sale of the Loan Contract, Sale of the Mortgage, Principal and Interest Charges, Fees Charged, Increase of its Lending Capacity due to Borrower’s Mortgaged Asset and by Acquisition of Borrower’s Mortgaged Property in Foreclosure. Bank retains the amount of increase to the Money Supply Created by the Borrower’s Signature once the Loan Account has been closed.
Borrower is Damaged by the Bank’s Loan Contract and Mortgage by Theft of his Financial Instrument Asset, Theft of his Mortgage Asset, Being Deceived into the unjust Status of a Debt Slave, Paying Lifetime Wealth to the Bank, Paying Unjust Fees and Charges, Living in Fear of Foreclosure, and ultimately having his Family Home Stolen by the Bank.
Thus the BANK MORTGAGE BUSINESS IS UNCONSCIONABLE
Ross Brader AREINZ says:
February 1, 2013 at 7:17 pmIf the many millions worth of homes our Pt Chevalier and Grey Lynn offices have sold since Christmas is any indication it looks like 2013 will be a boom year like no other – in Auckland at least!
Street record sale prices are being broken every week, the number of buyers looking for a home exceeds the stock available by at least 20 to 1 and the lack of new construction combined with low interest rates looks like leading to at least another 15% increase in house prices through 2013.
(but of course he would say that, wouldnt he?)
I am not cheering for the central west. I love Remmers and the eastern suburbs and that will never change as long as I am still in Auckland. I don't dislike central west but it is not my cup of tea despite trying so hard to imagine living there (yes I am still in my 30's). Some of my good friends are actually living in Pt Chev, Ponsonby, St Marys Bay and Herne Bay.
My post above merely reflects what is happening in the market right now as the houses in the east are not selling as fast as in the west and the prices in the west have overtaken the east in terms of per sqm. It is just factual, nothing more :)
Chris_J can say whatever he likes but he can't change my heart.
To prove that I am genuine, here are my top 10 streets in Remmers, in order of preference:
(1) Arney Rd
(2) Seaview Rd
(3) Victoria Ave
(4) Ranui Rd
(5) Entrican Ave
(6) Bassett Rd
(7) Upland Rd
(8) Dell Ave
(9) Lucerne Rd
(10) Ara St
Geez, I love them all - you can tell I am in love with Remmers and I can give you the list from no. 11 to no.50 - I even have my own chart and it changes on a monthly basis ;) Check out some Remmers celebrities: http://www.facebook.com/pages/Remuera-Real-Estate-Register/100797220022…
Thanks for remembering me Kate. I hope you enjoy reading my posts ^^~
Yeah I did thanks to my perseverence lol~
Proofs:
(1) http://www.qv.co.nz/Reports/Report.aspx?id=1743584&ReportType=PS
(2) http://rwremuera.co.nz/Resources/rwremuera/Remuera_Monthly_Updates/Remu…
Sold it for 1.165 mil to a young NZ family at the end (I wanted 1.2 mil). It was a good house with good bones but in this case Chris_J was right, the steep driveway was a turn-off for many. Oh well, it was a satisfactory outcome I suppose. I still managed to upgrade to another 20's bungalow nearby at the end.
No more steep driveway *phew*
P.s. The 1st thing I did after moving into the new house was getting my UFB installed for FREE - now I am enjoying my 100Mb download speed thanks to John Key and his team for the promotion ^^
Hi SK, good to hear from you :)
Reasons why I love Remmers, just to name a few, purely based on my own preference:
- Proximity to work (I work in Newmarket)
- Proximity to the CBD (2-4 km depending on location) and yet I don’t feel like I am living in the city
- Close to eastern bays such as Okahu Bay, Mission Bay, Kohi Beach, St Heliers Bay and beyond for a summer dip
- Proximity to the southern motorway hence ease of travel north and south, east and west
- Remmers is a very leafy suburb with many parks and reserves, not to mention many manicured private gardens, plus I really enjoy the new Orakei Basin boardwalk (thanks to the Auckland Council)
- The history of the area (heritage), and home to many historical architecture such as Coolangatta, Woodcroft, Fairholm and Elmstone
- Village green and feel - Remuera village and Upland Rd shops are full of boutique shops, small restaurants and cafes
- Northern slopes – north facing, sea view, Rangitoto view and all day sun for many
- Selection of schools and colleges for the kids: King’s School, St Kent for Boys, St Kent for Girls (Corran), Remuera Primary, Vicky Ave Primary, Remuera Intermmediate, Meadowbank School, Baradene College of the Sacred Heart etc
- Double grammar zone - the famous EGGS and AGS
- The houses are not built within close proximity e.g. good for privacy and no way we can shake hands with the neighbours from our windows
- Wide streets for friends and families to visit without having to worry about parking
- Streets are generally clean and houses are looked after with less run-down houses/rentals as neighbours
- Fibre to the home (Remmers is one of the first to have UFB Project implemented)
- Palmers and Kings Plant Barn (I love my plants!!)
- Round The Bays (I can have my home as the start line woohoo~)
- Nice neighbours, very friendly lol~
Reasons why central west are doing better, based on what I know:
- Proximity to the CBD (less then 1km for some, wow)
- Richmond Road Café
- Gypsy Tea Room
- Black Box Boutigue
- SPQR
- Bambina
- Ponsonby Road and Jervois Road
- Ponsonby Central
- Many character houses
- Bayfield School, Ponsonby Intermmediate
- Less plaster / leaky houses
- Funky and trendy feel for younger generation, night clubs, pubs, less blue rinse
- Big Gay Out in Pt Chev, very gay friendly lol~
SK, hopefully we are not taking lives for granted as Auckland is more than just Central West and Central East!! Think about Waitakere, Manukau and Rodney...are they not even part of the equation?? Is everything outside of 10-15 mins drive from the CBD a joke??
We should perhaps start counting our blessings~
Congrats!
Yeah, highspeed broadband - another example of middle class welfare - JK's the master at it - Aunty Helen had nuthin' on him :-).
May the good times roll on 4eva. Unfortunately we won't see any of it as we live rural.
Still on my unsubsidised speed I get all I need to work from home (at this stage of the works' systems interface, that is!).
I have been keeping an eye on Central Otago, around Lake Hayes to be precise...but the lands there ain't cheap. Another option is Matakana where I have relatives nearby. I don't need a large block, anything between 2 to 3 hectares (or 5 to 8 acres) would be enough. I found this today, looks yummy and I am a little tempted:
To each his own, eh? I couldn't live with that tree stump "feature". Here's the one I suggested Bernard should buy given his move to Welly;
http://www.trademe.co.nz/property/residential-property-for-sale/auction-543544248.htm
My OH reckons he sold the land years ago when a rural RE agent - quite steep down to the river but oh the isolation! Just magic. We have nearly as nice a bush gorge running through our place - except at the bottom is a stream, as opposed to a river.
I agree with speckles - best to make the move while young.
My opinion is that Mission Bay was a little overcooked during the 2007 peak but is still a very popular place to hang out for the younger generation and families these days (who doesn't want to feel beach-as?? http://www.youtube.com/watch?v=ZdVHZwI8pcA lol).
It is close to town, enjoyable car-ride to the CBD with water/bay view. House prices will maintain it's stability in Mission Bay especially for streets close to Tamaki Drive e.g. Selwyn Ave and Ronaki Road ^^
Our Mission bay property moved up over a 100k very quickly after the interest rates cuts post EQ. The interest rate cuts made the bay market catch up with the Auckalnd "in" areas for a time but has lagged since.
My sister left me her Herne bay property so kept it for sentimental reasons...however sure my daughter will enjoy it more in financial terms in time...talks about how she will use it when it is hers..she is a nine year...a nine year old mercenary.
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