Market insights from LJ Hooker General Manager Mr. Keith Niederer

An insight into the current property market in New Zealand.

Property market
  • 29 August, 2018
  • RESIDENTIAL
  • real estate, property market

The real estate market has returned to normal levels with a shortage of listings not just in Auckland but nationwide.

In Auckland prices have remained steady with no real drop as costs of land and buildings increase and timeframes add up.

Capital gain will be nominal if any in Auckland, with the regions possibly seeing more capital gain but not to the extent of the 2016/2017 market.

The real estate market has been underpinned by the reserve bank decision to keep the official cash rate at a record low.  In the bank’s monetary policy statement of 9 August the forecast for any O.C.R. increase was pushed out a full year implying a late 2020 lift.

Two year fixed mortgage rates remain below five percent across major banks and this looks as though it will continue with the latest predictions.  Homeowners set to renew their mortgage agreements in the coming months could benefit from even lower rates.  This will be a relief to many households who are faced with financial ongoing month to month commitments. A lot of families whether they own their own home or rent, are hunkering down, living frugally and trying to save some money due to the current economy and confidence levels in decline.

This could mean more listings coming to the market in all suburbs as home owners trade down or move to more affordable regions. Whatever happens with the global economy, will wash up on our shores.

The auction method of sale is still an excellent (best) option.  A big percentage of vendors are presently surprised by the results achieved.  The marketing elevates the property above the rest with open home attendances often seeing more potential buyers through the door, offering the vendor more chances of a sale.

LJ Hooker NZ

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