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Property market report

It’s a market of two halves

Half is the reducing volume of houses on market.

Half is the increasing confidence of buyers in the market.

Let’s face it, confidence has been sucked out of this market quicker than blood in a donor centre. It has been the perfect storm of, over-zealous Government regulation, Reserve Bank noose tightening, and the naivety in Wellington that you can buy a cheap house in Auckland, truth is “You can’t”.  Most buyers I have engaged with over the last two years highlight the near impossibility of borrowing money, extending overdrafts or making financial changes.  The good news is that some levers have been pulled to loosen the noose. These include:

- Tax deductibility on Interest charged on rental property

- Brightline test reversed to 2 years (not the 10 years Labour had in place)

-  CCCFA (The Responsible Lending Act) having a cut and tuck

- Transparent LVR ratios formulated to gross income

In addition interest rates are stable across the main banks with most offering a three year term of 6.39% and Kiwibank having a one year rate at 6.99%. This can only be good for certainty of borrowing.

Let’s look at the sales:

Herald Island                           $1,115,000

Hobsonville                              $600,000 to $2,350,000

Massey                                      $659,000 to $1,147,500

Waitakere                                 $1,200,000 to $1,800,000

West Harbour                          $849,000 to $2,500,000

Westgate                                   $750,000 to $865,550

Whenuapai                               $710,000 to $1,270,000

House prices have taken a thumping since December 2021, averaging 25% lower than at the peak of the market, but still up on pre-Covid pricing of 2018/19.  What we have seen plenty of over the last three months is a willingness by property owners to test the market, understand value, and withdraw from sale, therefore protecting their perceived value in their asset, while they move to rent or invest in renovations.  Over 35% of property brought to market has been withdrawn from sale over the last quarter. This is a time for cautious planning, careful moves and a willingness to understand market demand.  Ensure you list with an agent that is a good communicator, appreciates the value you see in your asset and has an excellent plan. Give me a call Graham McIntyre on 0800 900 700 or 027 632 0421 and let’s talk. Mike Pero Real Estate Kumeu/ Hobsonville. Licensed REAA2008.