Time to say goodbye to Auckland?

Above: This 3 bedroom Mairangi Bay home is sitting just above the current average asking price of $820,016 in Auckland. View the listing here: http://o2v.co/1Zi8

Skyrocketing. Raging. Through the roof. Out of control. INSANE!

All of the above have been used to describe the current Auckland Housing market. It seemed astounding around this time last year talking about the average asking price for Auckland hitting a new all time high record of $732,240.

Now for the first time, that has risen above the $800k mark, with realestate.co.nz reporting that for June 2015 the average asking price of an Auckland home is $820,016. That’s a $164,003 deposit you’ll need, and thats enough to have First Home buyers in Auckland running for the Bombay hills, which buy all accounts seems to be the case, with claims that Aucklanders are making up about 30 percent of attendance at open homes in Hamilton.

The average asking price suddenly seems less surprising once you start seeing stories like this: A West Auckland property which sold for 2.2million, $900k over its CV.

West Auckland Property

Even being able to access KiwiSaver contributions and HomeStart grants do little when the cap for Auckland homebuyers is $550,000 and anyone who has looked at any properties and been to an auction lately can tell you that there are very limited options under that price.

So… why not just leave? With Aucklanders are flocking to buy property in Tauranga, Hamilton and the Western Bay of Plenty, let’s see what the average Auckland house price (or close) might get you in some of those other regions.

Bay of Plenty
A stylish 4 bedroom, 2 bathroom ex-showroom in Papamoa Beach.

This slideshow requires JavaScript.

View the listing

Waikato
A 5 bedroom 3 bathroom lifsetyle property on 2.86 Acres featuring an entertainer’s kitchen with butler’s pantry, formal dining area and two lounges with bush and waterfall views.

This slideshow requires JavaScript.

View the listing

Northland
A 4 bedroom, 3 bathroom home with pool and spectacular views over Maungakaramea and beyond to The Whangarei Heads and Hen & Chicks sitting on 6.63ha with 250 Avocado trees.

This slideshow requires JavaScript.

Take the 3D HomeView tour 

New Plymouth
Enquiries over $749,00 will get you this fabulous 4 year old, 4 bedroom farmlet on 2.22 Acres.

This slideshow requires JavaScript.

View the listing

So what do you think? Comparable, or much better value? Where do you sit? Are you a disillusioned, Auckland First home buyer? Perhaps a retiree, ready to make the most of the high Auckland prices,cash up and move to the regions? Or are you just a non-Aucklander sick of hearing about Auckland House prices?

Share your thoughts in the comments below, or on our Facebook page.

NZ Property: Summer sales keep rolling on……

O2V ID#335063

O2V ID#335063

Ahhh Summer… it’s been a good one so far. You can tell from all the glorious Summer scenes and vistas our Photographers have been capturing around the country…

Seriously…take a look at these…..

The good summer weather has been great for the sunbathing, but it’s done nothing to cool the heated housing market, particularly in Auckland.

Recent figures from REINZ show that the number of dwellings sold in January (4,841) was up 2.6% on January 2014 with the National median price of $426,000, up $24,000 from the same time in 2014. The national median price rose 6.0% in the 12 months to January 2015, while Auckland’s median price increased by 16.0%

“The continuing strong performance of Auckland prices is vexing commentators and policy makers alike, however the root cause of the problem remains a shortage of property available for sale” says Real Estate Institute of New Zealand (REINZ) Chief Executive Helen O’Sullivan.

REINZ data shows that Auckland’s median price increased by 16% over the past 12 months, compared to just 1.8% for the rest of the country.

Backing that up are the latest figures from Barfoot & Thompson, where the all-time high pre-Christmas values held throughout January, with the average selling price of $757,319, was only $1572, or 0.2 percent lower than December’s all-time high price.

January sales figures of 859 properties is inline with the previous January figures over the past two years, however the total value of sales in January of $650,537,392 is up $97,822,014 from the same time in 2014.

For full market reports including regional & rural statistics, visit the REINZ website.

Now, if we could just get back to working on that tan…..

O2V ID#333884

O2V ID#333884

 

Property Report – Spring pace slow…

statspic2

Navigating through the various property market statistics released each month can be interesting….especially when they’re all reporting different things. However, for September, they all seem to be agreeing that the NZ Property market has moved on from it’s stall during the elections, with property listings and prices picking up to follow the usual spring trend, albeit at a much slower pace than in the previous year…

NZ Property report
Asking Prices

Unconditional.co.nz figures show the increase in national asking prices has slowed considerably: 3.9%, compared to an 8.7% rise in 2013.

Although the rate of increase in asking prices for properties has slowed, the prices are still moving upwards and remain at a high level with September’s National average asking price of $484,791 very close to the record of $490,550 set in June of this year.

Get the full NZ Property report here

Image: unconditional.co.nz

REINZ
Sales Volumes

REINZ data shows that while there was a noticeable increase in activity towards the end of September, sales volumes were well down on the same time last year. There were 5,911 unconditional residential sales in September, a 7.8% decrease on sales recorded for August, and a 12.0% fall from September 2013.

Barfoot & Thompson
Auckland Property Market

Comparing year on year, Auckland sale volumes where down: 1105 properties in Sept 2013, to 959 properties in Sept 2014.

However, September’s average house sales price of $738,876 has been the highest on record, due to the relatively low volume, but also, of the 959 homes sold, just over 17% were in excess of $1 million, including this little Grey Lynn gem, which went for $1.075 million. Only in Auckland right?….

Property Report…’Wait and See’ approach from the market.

handshouseIt’s been a funny few months in the NZ property market. The National average asking price (as reported by realestate.co.nz) has remained high since June, when Auckland reached a record high asking price of $732,240, driving the national asking price up to an all-time record high of $490,550 which was a significant increase from the previous record of $685,426 set in April this year.

realestate.co.nz figures for August are still to be released, however July’s National average of $488,711 was only 0.4% down on the previous month’s record high.

realestate

Graphic via uncondtional.co.nz

But while sellers (particularly in Auckland) are wanting more for their homes than ever before, the most recent reports show that the real estate market is having somewhat of a lull in what typically should be a time where it picks up in Spring, with many attributing the upcoming General Election as a key factor.

Real Estate Institute of New Zealand (REINZ) Chief Executive Helen O’Sullivan says, “The real estate market appears to be ‘idling’ as buyers and perhaps even more so, sellers, await the outcome of the September 20 election”.

With many a carrot being dangled, it’s no wonder sellers & buyers are taking a cautious ‘wait and see’ approach. Here’s a good summary from Stuff.co.nz of what each political party want’s to do, to help Kiwis buy or rent a house…

NATIONAL: Free up land for new sections. Rein in council development charges. Keep interest rates low. Replace the KiwiSaver First Home Deposit Subsidy with a KiwiSaver HomeStart Grant, doubling the support for buying a new home, and expand eligibility for Welcome Home Loans. Reformed the social housing sector, facilitating a shift from state housing to a range of new social housing providers.

LABOUR: Under the KiwiBuild policy, 100,000 starter homes would be built over 10 years.The ability of non-residents to buy houses would be restricted, cutting down on speculation. Landlords would have to ensure rental homes were warm and dry. Introduce a capital gains tax, and ensure councils are more likely to approve projects involving affordable housing.

GREEN: Key housing policy is to improve the quality of rental accommodation and the rights of tenants. A warrant of fitness for all rented houses would be introduced, families would be given greater security of tenure, and another 200,000 homes would be insulated at a cost of $327 million.

NEW ZEALAND FIRST: Develop a housing plan which would deal with a range of issues including availability and affordability, rental supply, finance and insurance. Provide government help to first home buyers. Set up an agency to buy land where special housing areas have been designated. Sell sections to first home buyers on a cost recovery basis. Encourage smaller houses on smaller sections.

MAORI: Continue to devolve state housing to Maori and Pasifika community groups for whanau to buy their own homes. Look at better use of Maori land to support whanau housing initiatives.

MANA: Make it a government duty to ensure everyone has secure, safe and affordable accommodation. Stop the sale of state houses and build 10,000 new ones a year. Introduce a rental housing warrant of fitness. At least half the houses in new developments of 10 or more homes must be affordable.

ACT: Support moves to abolish the municipal urban limit in Auckland and similar boundaries which restrict the supply of land. Reduce requirements on local government for complex planning and consenting processes. Support moves to get local government to speed up consenting.

UNITEDFUTURE: Allow families to capitalise Working For Families entitlements for a year as a lump sum to help buy a first home, extend a home, or increase equity. Look at abolishing domestic and commercial rates. Review Housing NZ tenancies each year to ensure housing stock is fairly allocated. Make it easier for Housing NZ to evict problematic tenants.

INTERNET: Adopted Mana’s support for a capital gains tax on property investors.

CONSERVATIVE: Leader Colin Craig has said he would write to developers who had locked up land in Auckland and tell them they had five years to build houses, otherwise the land would be bought under the Public Works Act. Artificial boundaries would be moved.

If the crazy lead up has left you feeling a little disillusioned and undecided as to where your vote is going, then this Election Interactive from Stuff.co.nz might help you find out a little bit more about your electoral candidates and Party Policies.

stuff

Election 2014 – Interactive from Stuff.co.nz

With only two days to go before the country goes to the polls, Real estate agents should be able to breathe a sigh of relief soon, with the market tipped to bounce back after the election.

Happy voting everyone!

May Property Report

AuroraAustralisDisplay

The Winter Solstice arrives this weekend, marking the shortest day and longest night for us here in the Southern Hemisphere. Yes, scarily enough, we’re already half way through the year.

Looking back at the property market during May, recent commentary suggests that the Reserve Bank’s loan to value restrictions have had an impact on sales volumes around the country, with a noticeable cool in demand compared to the same time in 2013.

However the average asking price remains at record high levels during May. Are seller’s just being unrealistic in their price expectations, or are we finally seeing a movement towards a buyers market?

Realestate.co.nz – NZ Property Report
Auckland’s asking price was barely a drop from the new record set in April of $685,426, once again dragging the national average asking price up to $483,524 (only marginally below the record of $484,263 set in March).  Inventory levels are still steadily recovering, with more than 40,000 homes for sale across the country as at 31 May and 10,745 new listings.

Barfoot & Thompson
The Auckland housing market has decelerated coming into the winter months, with Barfoot & Thompson’s figures showing a decrease is the number of properties sales in May 2014 (1109 ) compared to the same time last year (1284 ). A total of 1,318 new listings in May (down 19% on April) and with 3,498 properties on their books, Barfoot & Thompson recorded their second lowest number in May for more than 10 years.

Real Estate Institute of NZ:
There were 6,752 unconditional residential sales in May recorded from REINZ data. Although this was a 15.9% increase on sales recorded for April, compared to the same time last year, sales were down 14.8%.

All but one region recorded an increase in sales compared to April, and all regions saw a decline in sales compared to their figures from May 2013. Overall, sales volumes continue to trend down, with prices holding steady.

April Property Report – Asking prices ease slightly.

stats_graph

Yesterday, the NZ Government released its pre-election budget and those first-home buyers looking for a leg-up onto the property ladder could be forgiven for feeling a little hard done by.

In terms of housing affordability, the Government’s sole measure was the temporary suspension of tariffs and duties on building products which they claim will reduce the cost of a standard new home by $3500.

As to be expected, Opposition parties have attacked yesterday’s budget with Labour leader David Cunliff, claiming it showed “no vision and very little substance” adding that it offered “nothing for first-home buyers”.

The Government hit back with the suggestion that any “gimmicks or tricks” aimed at getting first-home buyers into the property market would do nothing but increase demand.

First-home buyers not exactly jumping for joy.

So what’s been happening around the country with the property market? Here’s an overview of some of the various property statistics published for the past month…

from realestate.co.nz

Asking prices ease: There has been a slight ease in the national asking price to $477,460 after the record high of $484,263 reached in March.

New listings drop: The number of new national listing was down -18% on the previous month, although slightly higher when compared to previous years, with a 2% increase to what was seen in April 2013.

Inventory levels recover: The inventory of unsold homes on the market continues to recover rising another 3% from March and 8% on the previous year, although historically, levels are still below the long term average inventory of 37 weeks.

graphic from realestate.co.nz

graphic from realestate.co.nz

View regional summaries and full commentary here.

Barfoot & Thompson‘s latest market update reports Auckland residential propriety prices cooling slightly during April, with sales down 15% over the same time last year.

Managing Director, Peter Thompson, said this was customary due to the Easter, Anzac Day and school holiday period, but a higher than normal number of listings (3623) was also adding to market competitiveness.

and from the Real Estate Institute of NZ:

From figures released on 12 May, REINZ reporting a sales volume fall in April with 5,670 dwellings sold in 2014 (down 22.5% on the previous month, & 20.2% on April 2013)

All regions saw declines in sales compared to march 2014 and april 2013.

The National, Auckland and Christchurch House Price Indices all recorded record highs in March 2014.

March Property Report – Main centres drive national increase to new highs.

akl_map2

While always traditionally a busy time of year, March looks to top records for the property calendar in 2014.

Figures released this week by realestate.co.nz. show that  while over half of the country’s regions saw an increase in asking price, it was the major centres of Auckland, Waikato and Wellington that were the driving forces behind the new record national asking price of $484,263, each region reaching their own record level with Auckland jumping up 12% on the previous year.

Auckland: $683,169  – 1% up from previous month, 12% up from same month previous year.

Wellington: $469,487 – 1% up from previous month, 7% up from same month previous year.

Waikato: $393,612 – 3.6% up from previous month, 10% up from same month previous year.

Inventory levels rose slightly to 28 weeks, but still well down on the long term average of 37 weeks of stock.

New listings increased slightly form last month, up 2%, however overall, March listings were lower than expected. 14 regions reported lower new listings than the same time last year with the most significant falls in Coromandel (down 29%) and Nelson (down 25%).

Canterbury reported 3.7% increase in new listings and Auckland 5% up from March 2013, however the buyer demand in Auckland still far outweighing the number of properties available.

Graphic from realestate.co.nz

Graphic from realestate.co.nz

In other Auckland news, Barfoot & Thompson reported an 80% increase in sales from February, with average house prices reaching $725,708 and the marian sales price for the month sitting at $652,000.

March also saw the largest number of premium properties since 2008 to be sold by Barfoot & Thompson in a single month, with homes over the $1 million price bracket accounting for 35% of the total residential sales for the month.

Daunting figures for any potential new home buyer in the Auckland region.

View the full realestate.co.nz property report for March 2014 here

View Barfoot & Thompson’s latest market updates here