A chill wind blew across the housing market in June

Property

Average prices on Realestate.co.nz dropped in 10 out of 19 districts in June. Auckland's average price down by $73,639 since February

1st Jul 17, 7:49am by Greg Ninness

The housing market is feeling the winter blues, with average asking prices of homes newly advertised for sale on Realesate.co.nz falling in a majority of districts in June.

The national average asking price dropped from $642,478 in May to $626,889 in June, with declines recorded in 10 regions (Northland, Auckland, Manawatu/Whanganui, Wellington, Nelson, Marlborough, West Coast, Canterbury, Otago and Central Otago/Lakes) and rises recorded in nine (Waikato, Coromandel, Bay of Plenty, Gisborne, Hawkes Bay, Taranaki, Central North Island, Wairarapa and Southland).

In Auckland the average asking price dropped from $956,267 in May to $905,013 in June, which was the fourth straight month in which it has declined since it peaked at $978,652 in February, a drop of $73,639 in four months.

In Wellington it dropped from $568,493 in May to $541,298 in June and in Canterbury it declined from $492,551 in May to $461,351 in June (An earlier version of this story contained a map which showed the monthly movement in asking prices around the country, which did not match the average prices stated in the story. That was because the figures in the map were seasonally adjusted, while the figures in the story were not seaosnally adjusted).

The was also a decline in the number of properties newly listed for sale on Realesate.co.nz in June, with the national total dropping from 9860 in May to 9026 In June, which was also below the 9327 that were newly listed in June last year.

Of the 19 districts around the country, 14 recorded a decline in the number of new listings and five (Hawkes Bay, Coromandel, Central North Island, West Coast and Central Otago-Lakes) recorded a rise, although the listing numbers for the regions that recorded rises were small.

That saw the total number of homes available for sale on the website drop from 24,229 in May to 23,507 in June, but that was still well up on the 21,612 that were available for sale in June last year.

In Auckland the total stock of homes for sale dropped only slightly, from 8622 in May to 8560 in June, but that still was up a whopping 57% compared to the 5463 properties that were available for sale in Auckland in June last year.

In Wellington the total stock of properties advertised for sale on the website dropped from 1069 in May to 944 in June, but that was still up from the 830 available for sale in June last year.

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95 Comments

by Nzxonz | 1st Jul 17, 8:18am 1498853929

Wonder how they calculate as many property in Auckland are still for auction and only if the auction fall, than also many a time they mention price on negotiation instead of asking price.

by Double-GZ | 1st Jul 17, 8:21am 1498854113

The whole country will celebrate with this wonderful news.

by Zachary Smith | 1st Jul 17, 8:45am 1498855548

Glad tidings indeed Double-GZ, the crisis is over and normality has returned. All done without increasing interest rates too.

by rjn1 | 1st Jul 17, 8:54am 1498856059

Ummm, interest rates have increased substantially in the last year.

by Double-GZ | 1st Jul 17, 9:05am 1498856732

Are you sure? I just fixed my 2 years at 4.39% last month.

by Narrabeen Boy | 1st Jul 17, 9:12am 1498857138

That's a good rate.which bank was that with?I've got one due in Sept not sure sheathed to go two or three years

by Double-GZ | 1st Jul 17, 9:33am 1498858424

A major bank begins with the letter 'A' ;-)

by bw | 1st Jul 17, 9:47am 1498859235

4.39%. An historically good mortgage rate. But just imagine how much less the servicing costs would be at that rate if the debt underlying it was half of what you ( 2nd person plural!) have today. And what else you could do to stimulate the wider New Zealand economy if you ( again!) had half of your capital cost outlay still in your bank account and the weekly outgoings gave you more disposable income to spend? High property costs will eventually kill any economy if they are not underpinned by productivity increases (ie: as a country, we don't have to borrow to live), and we are/will be no different.

by Zombie ponzi | 1st Jul 17, 10:55am 1498863355

I am sure.

http://www.rbnz.govt.nz/statistics/b20-new-customer-average-rate

by Grendel | 1st Jul 17, 11:03am 1498863818

Snap!

by Kate | 1st Jul 17, 5:41pm 1498887662

interest.co ought to get rid of one or other of them.

by rjn1 | 2nd Jul 17, 7:52pm 1498981958

Maybe both?

by rjn1 | 2nd Jul 17, 2:23pm 1498962181

Yes I'm sure. That's nice, but beside the point.

by MisterB | 3rd Jul 17, 12:19pm 1499041158

Last year, you would likely have been able to fix a 2 year loan for less than 4.39%, so, yes, they have increased.

by Zachary Smith | 3rd Jul 17, 12:24pm 1499041469

MisterB, if you look at Zombie Ponzie's RBNZ link above you will see that the changes have been insignificant from 2015 to 2017. Most people that refixed this year have done so at reduced interest rates.
I would suggest that it is the banks themselves that have tightened up lending criteria which has resulted in fewer sales able to be arranged and consequently a mini correction in certain areas.

by MisterB | 3rd Jul 17, 2:52pm 1499050347

Zach... I think you're missing the point of my post. The RBNZ report CONFIRMS that Year on Year, rates are well up.... add that to the fact loan sizes are well up and out of pocket costs are not 'insignificant'

by Zachary Smith | 3rd Jul 17, 3:06pm 1499051207

Why is every row under April 2015 showing higher percentages than April 2017? Am I reading it wrong? Loan size observation is no doubt valid though.

by mfd | 3rd Jul 17, 3:10pm 1499051444

2015 was two years ago, this discussion was about the change in the last year.

by CJ099 | 1st Jul 17, 10:13am 1498860800

Really Zachary/DGZ what makes you think that the crisis is over and that normality will return to the Auckland market?? We've just dropped -$50k in one month!

Quote from article: "Auckland the average asking price dropped from $956,267 in May to $905,013 in June"!

The fact that it's been dropping for four straight months and it still has much much further to fall until it reaches affordable levels for your average Aucklander. You're so not out of the woods yet.

by M.Aurelius | 1st Jul 17, 10:35am 1498862130

That's right. Listing in Auckland 57% higher year on year in winter!

Come spring when the new listings show up... its going to be very interesting!

Bachman–Turner Overdrive anyone?

You ain't seen nothin' yet
B-b-b-baby, you just ain't seen n-n-nothin' yet
Here's something that you never gonna forget
B-b-b-baby, you just ain't seen n-n-nothin' yet

by Double-GZ | 1st Jul 17, 4:14pm 1498882477

Zachary today (1st July 2017) is the day that the new Auckland revaluation will be based on. Are you excited? Up or down do you think?

by Zachary Smith | 1st Jul 17, 9:00pm 1498899636

Double-GZ I think it will obviously be up. I don't think they would go too far wrong if they just used the homes.co.nz figures and set the valuations at the midpoint between the low and middle figure for all properties.

by Double-GZ | 2nd Jul 17, 7:39am 1498937953

Well I hope so. I just had a look this morning on homes.co.nz but July values are yet to be published...should be in the next few days I think. The value of my home is still the highest it has been since homes.co.nz first started. Will see if the Council follow it ;-)

by MisterB | 3rd Jul 17, 12:20pm 1499041251

Great, you'll pay a higher share of the Rates take hopefully

by Zachary Smith | 3rd Jul 17, 12:26pm 1499041593

It may turn out that the outer suburbs pay a higher share if they have increased in value proportionately more than the central suburbs.

by MisterB | 3rd Jul 17, 9:35pm 1499074500

That's not the fiddle DGZ is playing though, is it.

by kpnuts | 1st Jul 17, 9:26am 1498857999

very interesting - with an election in the offing - we could easily see this -4.7% repeated in july, august and September and we would finally have BH's 20% correction ! pretty much wiping out the majority of FHB's equity from the last 18 months - although investors will still have a decent margin

careful what you wish for as tehy say

by bw | 1st Jul 17, 9:36am 1498858582

Coming here?

from July 1...Property sellers face new 12.5 per cent tax ....So long as the purchase price is $750,000 or more, it does not matter whether it is sold by an Australian or foreign resident...

http://www.afr.com/personal-finance/property-sellers-face-new-125-per-c…

by fat pat | 1st Jul 17, 10:08pm 1498903737

"Property sellers face new 12.5 per cent tax" wow - Heard them in and close the gate.

by two otherguys | 2nd Jul 17, 9:02am 1498942934

Incorrect - Read the article more closely

Australian residents selling property will from July 1 need to provide a "clearance certificate" issued by the Australian Taxation Office to the purchaser on settlement of the sale to avoid the 12.5 per cent withholding tax.

Foreign resident sellers will have 12.5 per cent withheld and remitted to tax authorities

by Houses Overpriced | 1st Jul 17, 9:49am 1498859379

I feel bad for those RE agents who depend on the commission to support their family, this is the reason I've been against the ridiculous rise in prices as the downturn has a more devastating effect on some families

by Gummy Bear Hero | 1st Jul 17, 12:13pm 1498867988

... so true ... I toss and turn in my Gummy hammock at night , worried endlessly about the poor real estate agents of New Zealand ... how will they cope when the house price downturn kicks in in full force ... oh dearie me , how will they cope ...

Perhaps we could set up a crowd-funding site ... to provide monies to financially stressed RE agents ... how will we ever respect them , if they have to trade down from their Aston Martins or Porsches ... sigh ...

by Houses Overpriced | 1st Jul 17, 12:24pm 1498868650

Lol

by Kakapo | 1st Jul 17, 12:46pm 1498870001

Real estate agents are like drug dealers. Get hooked on their own product and need to keep creating new addicts to fund their own habit.

by Gummy Bear Hero | 1st Jul 17, 12:56pm 1498870570

... the real estate industry is not a million miles from " multi - level marketing " .. is it ...

Where the first ones in make out like bandits , hoovering up the lion's share of the profits ... and the late arrivals get a progressively smaller slice of the action ...

... and the last ones into the scheme get taken to the cleaners ...

Not so different from " Ponzi " either , is it !

by two otherguys | 1st Jul 17, 1:17pm 1498871840

What you describe is exactly like the flood of migrants arriving into Auckland

The early-birds have made out like bandits
The late-comers are squeezing in and sitting down to a fixed size pie
They don't bring their own pie, they are eating our pie

by Hardly | 1st Jul 17, 12:57pm 1498870635

"Gummy Hammock" haha.

I'm not shedding any tears for real estate agents but it will be brutal for them, it was 10 years ago and the decline was relatively minor compared to the potential this time.

by Uninterested | 1st Jul 17, 1:39pm 1498873179

A good chunk of RE agents will own property as well, so for them this correction will be a double whammy!

by tothepoint - d… | 1st Jul 17, 10:30am 1498861842

Today's headline is hardly remarkable...... It's mid-winter, with an election looming. Plus, it's post-boom.

The Auckland market is noticeably variable - with some localities still inching up in price. These include Grammar Zone and the Ponsonby area - where there are very few properties on the market.

by CJ099 | 1st Jul 17, 10:42am 1498862524

You know Spring is only round the corner, I'll be really interested to see what excuses you'll come up with then for falling property prices.

Oh and by the way, if you take a look at the latest auction results for Ponsonby and Remuera. You'll find far more NOT SOLD than the one of two sold signs. So it's a little bit more than just a Winter chill.
Your top end overseas investors are gone and there is nothing you can do about it, and we all know it.

Better Dwelling article: China’s Massive International Real Estate Buying Spree Is Officially Dead
https://betterdwelling.com/page/4/

by theglc | 1st Jul 17, 11:24am 1498865068

I was waiting for tothepoint to roll it in glitter, never to disappoint ...

by MisterB | 3rd Jul 17, 12:23pm 1499041410

"Post-boom" .. nice. Is that the same as "Pre-Crash"

by tothepoint - d… | 1st Jul 17, 11:57am 1498867053

Hi CJ099,

You write: "You know Spring is only round the corner, I'll be really interested to see what excuses you'll come up with then for falling property prices."

Please note that I don't ever offer "excuses". I focus on monitoring and interpreting what actually happens.

I work across a number of investment and consumption markets - not just housing.

By the way, you'll find that nearly all the unsold properties in Ponsonby have been on the market a very long time. They're not desirable properties and it's no surprise that they haven't sold. Good quality, new listings in such areas are relatively few, compared with Auckland as a whole.

Realestate.co.nz currently lists just 3 houses for sale in Ponsonby. (Yes - only three!) Go into the site and check it for yourself. This is a historical low. The likely reason is that the long term potential of property in that locality is particularly strong and people won't sell.

by CJ099 | 1st Jul 17, 10:49am 1498862977

Hi tothepoint,

Really, I find that extremely hard to believe and you can't be doing all that well since you say you can't even afford a home. So I think virtually all of us will take your advice with a big pinch of salt and promptly ignore it.

I still think you're an RE just trying to push us to buy property in a clear falling market, I'm sure that none of us local Investors would be silly enough to buy in this current market. I'll stick to the facts if you don't mind.

by tothepoint - d… | 1st Jul 17, 11:07am 1498864043

Hi CJ099,

You write, "I still think you're an RE....."

Wrong again. I have absolutely no involvement with the real estate sales industry. Certainly, I have never worked as a real estate agent. Neither do I have any friends or relatives who work in that industry.

My background is in research/analysis and policy. (Marketing/sales is not an area where I have any career experience.)

Finally, I have never stated that I can't afford a home. That's complete rubbish. I happen to own my own home.

by JohnSmith | 1st Jul 17, 11:56am 1498866967

To the point is TED

by CJ099 | 1st Jul 17, 1:00pm 1498870832

@tothepoint: Actually you did state at least once that you couldn't afford a home. I know because I pulled you up on this topic quite recently before and directly asked you; why you were so keen to push the property market if you were trying to afford a home? And you didn't respond to me, you just prattled on as usual pushing the property ponzi scheme like an RE.

And as for being a research/analysis as you claim, you are pretty terrible if you can't even analyses the figures presented very clearly in the article. Plus again where are your figures or even any evidence to support your claims that this is just a blip and the market will return to normal?

So, NO I simply don't believe a word you say!

by tothepoint - d… | 1st Jul 17, 3:33pm 1498880000

Hi CJ099,

You write, "Actually you did state at least once that you couldn't afford a home."

That is incorrect.

by RichMuhlach | 1st Jul 17, 11:33pm 1498908782

Interesting how tothepoint has consistently mentioned he's a renter and cannot afford Auckland property, and now suddenly he apparently owns property, on the same week we find out that DoubleGZ apparently has a big housing portfolio? What a convenient coincidence this sudden change of events.

Having a hard time keeping up with the lies there DoubleGZach/tothepoint?

by Double-GZ | 2nd Jul 17, 11:32am 1498951955

Oh no you got it so wrong, I am not tothepoint I have no knowledge nor interest of the Ponsonby market to be honest. Also my portfolio isn't that big really but I have rentals in the south, west and central east (the Bays), although the West Harbour property is no longer a rental as family is living in it. I am now looking to get into the Puhoi/Warkworth area but I'm still doing my research. Also the fact that I only received $10k tax return from the IRD suggests that my portfolio isn't that big.

by CJ099 | 2nd Jul 17, 10:49am 1498949395

Hi tothepoint,

Really, are you sure? Because here's one of your comments that clearly states that you haven't entered the property market yet and therefore strongly indicates that do not own a home.

So I can only conclude that you are indeed lying, as other Commenters have point out as well!

To quote your comment: " If house prices in Auckland were to drop markedly, then people like me might be able to enter the market and purchase - but that's wishful thinking.......".

By the way if you change your comment the date stamp will also change and we'll know. The full comment is below:-

by tothepoint | Wed, 28/06/2017 - 17:22

With all due respect, gingerninja, markets are fickle......

Only yesterday, NZ won the America's Cup. That might well give a boost to housing activity (and prices) in Auckland - and elsewhere.

Prices remain pretty stable across most of Auckland. The best informed commentators (such as the Reserve Bank) are talking about a slowdown in price increases - and not price decreases.

I expect those commentators will be correct.

If house prices in Auckland were to drop markedly, then people like me might be able to enter the market and purchase - but that's wishful thinking.......

https://www.interest.co.nz/property/88518/new-reserve-bank-figures-show…

by J.C. | 1st Jul 17, 2:02pm 1498874567

My background is in research/analysis and policy. (Marketing/sales is not an area where I have any career experience.)

You could be part of a team that collects data via phone calls (CAPI). That would qualify you as having a "background is in research/analysis and policy." What kind of research / analytics are you interested in?

by tothepoint - d… | 1st Jul 17, 3:48pm 1498880912

Hi J.C.

You write: "You could be part of a team that collects data via phone calls (CAPI)."

That is incorrect. My background is in the social sciences.

by J.C. | 1st Jul 17, 6:00pm 1498888848

Well CAPI is a data collection process used in political polling, consumer research, and primary research in the social sciences. Of course, considering your claimed background, you would know that.

You wouldn't be trolling by any chance?

by RichMuhlach | 1st Jul 17, 11:17pm 1498907850

https://www.interest.co.nz/opinion/88483/election-more-any-others-recen…

Submitted by tothepoint on Tue, 27/06/2017 - 16:54
Hi Dictator,

You write: "The market is the market."

And therein lies the rub! One has to meet the market - the other way around doesn't happen.

For folks like me, waiting for Auckland house prices to come down would be a poor strategy. The market in Auckland can't be relied upon to stoop down and pick us up.

Nonetheless, guys like you and CJ099 are welcome to continue to try talking the market down. If you're successful, people like me will be enormously grateful to you. Please have no doubts about that.

Let's see what you can come up with next........."

In your comments above, you clearly say that you don't own property and are waiting for the prices to come down. If you deny any of that or try to weasel your way out, you'd be straight up lying.

by CJ099 | 2nd Jul 17, 1:27pm 1498958823

Thanks Rich, I've also caught tothepoint out lying about his property ownership in a comment replying to gingerninja (See below or attached link). It just goes to prove how ridiculous he is.

Comment: by tothepoint | Wed, 28/06/2017 - 17:22

Quote: " If house prices in Auckland were to drop markedly, then people like me might be able to enter the market and purchase - but that's wishful thinking.......".

https://www.interest.co.nz/property/88518/new-reserve-bank-figures-show…

by Zachary Smith | 2nd Jul 17, 11:26am 1498951608

CJ099, RichMuhlach, I don't recall tothepoint ever saying he rented. All his comments could still be valid if he owned a property outside of Auckland or was talking about entering sub-markets within the Auckland district. For instance, "folk like me could enter the Ponsonby market..."

by CJ099 | 2nd Jul 17, 12:48pm 1498956520

Nahhh... Nice try Zachary, unfortunately you both (You and tothepoint) can't weasel your way out of this one.

by dictator | 1st Jul 17, 11:22am 1498864926

There are developers that creating affordable housing yet no one who qualifies for it can buy it because the banks won't lend them the money. The credit tightening is going to put the pressure on prices for some time yet.

by gingerninja | 1st Jul 17, 11:30am 1498865403

Popping over to interest.co.nz after taking the kids to their swimming lessons just now, read the headline, immediately thought... "I bet the butthurt has commenced already in the comments" and low the butthurt was plentiful.

If this bubble pop turns into a full on crash, I wonder if the spruikers will keep commenting?

by Zachary Smith | 1st Jul 17, 11:49am 1498866594

Butthurt

An inappropriately strong negative emotional response from a perceived personal insult. Characterized by strong feelings of shame. Frequently associated with a cessation of communication and overt hostility towards the "aggressor."

CJ099?
Certainly not the great three, they're always upbeat.

by gingerninja | 1st Jul 17, 12:02pm 1498867323

Yes, the great three, or as I envisage, The Mighty Cerberus (knowing much you like Greek Mythology Zachary ;-) )

by tothepoint - d… | 1st Jul 17, 4:05pm 1498881954

Hi Gingerninja,

You write, "Yes, the great three, or as I envisage, The Mighty Cerberus (knowing much you like Greek Mythology Zachary ;-) )"

But getting back to the point (and as, no doubt, you have verified) there were only 3 houses listed this morning [1/7/2017] on realestate.co.nz for Ponsonby.

That's an historically low level of listings for this sizeable and popular Auckland locality.

Unquestionably, there are Auckland suburbs which continue to have buoyant housing markets - despite the gloom of winter and the various negative comments made here by certain people.

by gingerninja | 1st Jul 17, 3:57pm 1498881450

Tothepoint? I haven't made any comment about Ponsonby, or the level of listings.

I was just making a hounds of Hades jest to amuse Zachary.

by CJ099 | 1st Jul 17, 1:11pm 1498871497

@Zachary: At lest we speak the truth and present evidence to support it! Rather than pushing the property ponzi scheme that would eventually drag us all in to a recession.

And at least I wasn't temporarily banned from this website like you Zachary for touting extremist views. :P

by bw | 1st Jul 17, 11:41am 1498866083

household saving ratio - which measures the amount they have available to save as a share of disposable income - halved to 1.7pc in the first quarter of 2017, from 3.3pc in the final quarter of 2016. This is the lowest rate since records began in 1963 and suggests Britons have been dipping into savings to maintain their standard of living.

1.7% ! Let's hope it's better in NZ...but I doubt it's significantly so......
http://www.telegraph.co.uk/business/2017/06/30/household-saving-drops-f…

by Stephen Hulme | 1st Jul 17, 1:41pm 1498873283

Probably more like this:

Stagnant wages and soaring house prices have left 320,000 families trapped in their homes because they cannot afford to move and climb the property ladder

- UK has 320,000 ‘missing movers’ stuck in homes they can’t afford to leave
- Before the financial crisis, around 1.6m homes were sold a year
- Sales hit 1.2million last year but ‘missing movers’ made up most of the shortfall. Read more

by nymad | 1st Jul 17, 8:59pm 1498899590

A very important point, the lock-in effect.

Something that has characterised Detroit over the past 30 years. Extremely bad for labour mobility.
Extremely bad for cities.

by Gummy Bear Hero | 1st Jul 17, 12:02pm 1498867368

It isn't true ! ... this is FAKE NEWS !!! ... it must be ...

... we all know that you can't lose with property , mate ... Lord knows we've been told so many times on this site ..." Land ; they aren't making any more of it "...

Move along folks ... nothing to see here ... just some scuttlebutt put out by someone who stirs more often than Nigella Lawson ...

... relax guys ... keep buying ... yes ... that'll cheer you up ... go to an open home , and pretend to the agent that you have a Chinese sounding name ... that ought to get them excited .... BUY !!!!

by Hardly | 1st Jul 17, 1:22pm 1498872179

Yes, this time it is different. Remember Auckland is more resilient than London was in 2007 because Auckland is a destination city where international commerce thrives and people from all around the world want to live where as London is just some third world backwater with no productive industries or unique selling points. There are two types of people in this world - people who live in Auckland and people who are planning to move to Auckland. At some point everyone will live in an Auckland with roughly the same number of houses. This is why you can't lose on Auckland housing. Auckland property will rise forever, occasionally at 10%+ but if not at least 5%+. This is a fundamental law of nature like gravity and thermodynamics. If you aren't buying property with as much leverage as you can get your hands on you are losing money. Everyone is doing it, your neighbour is doing it, your in laws are doing, your taxi driver is doing, hell your grandmother is doing. How will you feel when they are multimillionaires with hundreds of properties. If you don't buy you will be the last person working in New Zealand, literally everybody else's will be property millionaires living luxurious lifestyles off the only perpetual motion machine in the universe - Auckland property. Still have doubts? Every heard of "safe as houses"? Exactly. Why buy an investment that is safe as houses when you can buy the actual house, with leverage. Duh!

by Conrad | 3rd Jul 17, 1:51pm 1499046687

Bravo! Bravissimo!

Finally a clear understanding of the Isthmian cornucopia!

by Averageman | 1st Jul 17, 12:29pm 1498868973

The headwinds that were discussed since october are continuing to blow. The property bulls were in full denial over the last 6 months, some probably still are. Massive disconnection in incomes and prices had to correct at some stage. Chinese money had no impact says Nats. Stats now prove Nats were lying bleepers.

by two otherguys | 1st Jul 17, 1:34pm 1498872856

quote - "National say Chinese money had no impact - Stats prove Nats were lying"

See next post below

by RickStrauss | 1st Jul 17, 11:05pm 1498907136

National....that's the party with Bill English and Judith Collins, yeah?

Ah, well of course they were lying about Chinese money having on impact then. Nothing like sticking to one's knitting.

by abnz1 | 2nd Jul 17, 7:25am 1498937121

Remember that national follow policy of denial, lie, manipulation and if nothing works blame ithers.

Can attribute this national prinvipal ro what they do say be it houding, immigrstion, health, crime rate......

by two otherguys | 1st Jul 17, 1:31pm 1498872674

The double whammy - as from 1 July 2017

Has anyone seen this reported in the NZ media or is it alarmist fake news?

Buyers from China will face extra scrutiny of currency transfers abroad, with banks and other financial institutions in China now required to report cash transactions of more than 50,000 yuan ($9630), compared with the current amount of 200,000 yuan.

China’s banks will also have to report any overseas transfers by individuals of $US10,000 ($13,060) or more.
https://www.domain.com.au/news/thinking-of-selling-to-a-buyer-from-chin…

by O4 normal | 1st Jul 17, 1:54pm 1498874068

Are we selling nz to people oversea with there access to money, or are we selling nz to nz,er with our incomes, WE CANT DO BOTH, unless in very small numbers , and if we switch back and forth boom bust, wast of time, slow and NORMAL with a better use of rising and dropping interest rates, NORMAL

by Yvil | 1st Jul 17, 5:43pm 1498887827

“We’ve been collecting property data for more than 10 years and never before have we seen so many apartments come onto the market in one month. With apartments typically being more affordable than houses, this has pulled down Auckland’s total average asking price for the month,” says realestate.co.nz spokesperson Vanessa Taylor.

by Zachary Smith | 1st Jul 17, 6:57pm 1498892253

Yvil, that is strange because when I do a search for apartments only on TradeMe for Central Auckland I'm getting back a figure of 935 which is considerably lower than when I last looked. However if what she says is true then it could skew the figures. Indeed it does appear that the majority have asking prices, unlike houses. So if apartments all lost confidence in auctions and went to negotiation then suddenly the "average" asking price would certainly drop. Apartments and houses should be separated in the statistics otherwise its kind of "fake news".

by gordon | 1st Jul 17, 6:26pm 1498890380

Anyone could see that Auckland and Christchurch were due for a correction. I tried on several occasions to advise people to reduce their portfolio and take some profits off the table. As a trader at heart I do that with my share portfolio regularly. Where the correction will go I have no idea. One thing I do know is that fear is a terrible thing and it makes some holders of assets panic when they see their assets drop in value. We are in interesting times and the upcoming election puts even more uncertainty on where we are going as a Nation.

by Yvil | 2nd Jul 17, 12:02pm 1498953740

gordon, you are a share trader indeed. I used to invest in the stock market too but I stopped because I was not good at it. Real estate is quite different and much harder to "trade" because of
1) the cost associated (RE fees, lawyers fees, staging or just bringing up the house to standard to sell, will cost $50K or more,
2) it takes several months to prepare, market, sell and settle on a house, during which time the market can and does change
I'm a (very) long term property investor and it doesn't phase me if house values go down for a while, especially after having surged for several years, it's to be expected. I know that, in the long run, my mortgages get smaller and the house values gets bigger, simple really.

by gordon | 2nd Jul 17, 3:50pm 1498967401

Yvil I am not a share trader per se.I have a long term account that I added to last week and it holds one NZ stock. I have a trading account with limited funds in it. I have commercial property investments and residential land that is sold off in stages. I have never had a rental home . However as you can see I am reasonably diversified. Are you? how would you feel if your rentals dropped say 20 per cent ? They could . You have certainly missed out in not holding shares.

by Yvil | 2nd Jul 17, 4:36pm 1498970169

The beauty with property is that the longer you hold them the better it gets. I bought my 1st investment property 23 years ago, I am geared very lowly and I couldn't care less if real estate values fall by 20% or more. I would then simply look for opportunities to buy more, at discounted prices

by gordon | 3rd Jul 17, 5:59am 1499018353

You are a lucky boomer like myself Yvil. Unlike Late X and Y who have little chance of ever building up a portfolio of any asset class. Unless they get a leg up of course.

by Independent_Observer | 2nd Jul 17, 11:29pm 1498994947

Amusing how strong the bias is - it's like Yvil is wearing a pair of rose tinted glasses and Gordon is trying to tell him the sky is blue, but he won't believe it because Yvils rose tinted glasses are his favs

by Independent_Observer | 2nd Jul 17, 11:34pm 1498995282

'The beauty with property is that the longer you hold them the better it gets'

Have you tried that one with anyone from Japan by chance?

by Yvil | 3rd Jul 17, 12:36pm 1499042173

Why are you always so envious of other people's success, Independent Observer? If someone is doing well you just love to cut them down and insist on showing them the downside. Don't be so bitter and jealous, mind your own business, I mean really look after your own business and do well for yourself

by Independent_Observer | 3rd Jul 17, 2:44pm 1499049866

If you were Warren Buffet or George Soros sure I'd celebrate in your success Yvil. But to claim I'm envious of 'your success' is a pretty bold and narcissistic view point - are you claiming that you're a success? (I'm not envious of anyone who has made a lot of money through property investment - I actually feel sorry for them because it means they probably failed getting established in a profession and now have to speculate on houses to try and make a living..i.e. they couldn't get a real job e.g. TM2).

But the truth is, landlord'sim and property speculation in this country is morally flawed. Look at our poverty stats. Look at the mountain of debt we've created...Look at the amount of 'rent' young people/families are now paying and who at the present have no hope of getting ahead in this country. I can't say there's a definite correlation, but our suicide stats among young people are terrible and from talking to a lot of them, they're losing hope in ever being able to get by in this country.

So if you want to be a property bull and demand that other people join in the celebration of 'success' (as National like to put it and other turkeys), just take some time to double check how morally sound your position is.

by albinodog | 1st Jul 17, 7:33pm 1498894413

Could also argue that more top end properties are selling at the moment that's why the prices are still propped up as it is. The south auckland/manukau clearance rates have been abysmal for quite a while already.

by Yvil | 2nd Jul 17, 4:37pm 1498970270

I was simply quoting what the article said. Just read the full report

by Double-GZ | 2nd Jul 17, 11:27am 1498951668

Maybe tothepoint is referring to entering the high end market. It could be a silly typo ya know.

by saamee | 2nd Jul 17, 4:36pm 1498970182

From the UK Housing Market > Predicting up to a 40% price crash! Prices down 3 months in a row.

http://www.dailymail.co.uk/news/article-4657812/Britain-brink-housing-p…

by tothepoint - d… | 2nd Jul 17, 6:19pm 1498976344

Hi sammee,

Not surprised given the carnage Brexit is causing.

Political stability renders markets like NZ far more reliable.

by Averageman | 3rd Jul 17, 12:43pm 1499042591

I wonder if we will have the same issue with apartment settlement that developers are seeing in Aussie city's. That problem being that Chinese buyers not being able to settle due to cash restrictions, and walking away from deposits. http://www.ibtimes.com.au/chinese-buyers-australian-apartments-abandon-…

The Schools are already well over capacity and something has to give. Just imagine if the DGZ schools refuse to take the students destined for those developments, or shrinks the zone as proposed here...? https://www.parliament.nz/resource/en-NZ/51SCES_EVI_00DBHOH_BILL69778_1…

by two otherguys | 3rd Jul 17, 1:09pm 1499044185

Will we have the same issues?

Yes - you just won't hear about it