The NZ Herald of September 14th 2011 published in article on page 4 headed “House prices and sales on rise “.The content emphasised that the worth and level of homes sold within the month of August both showed increases. As has been the trend over the past 2 years, any increases outside Auckland were of a very modest nature, largely in the 1 – 2% region (measured over the prior year).
Houses for sale in Auckland, however showed much greater increases with the Real Estate Institute (REINZ) figures quoted showing median value increases of just lacking 3% in the eight month period since January. Projecting forward, this may cause a predicted escalation in median values of around 5% for decades end 2011.
When reporting on houses for sale in Auckland, REINZ figures lump residences (houses) and appointment/town houses in the exact same category. The biggest group of sales have been in the CBD apartment market which includes been deflated for many years. Couple this with some aspects of the North Shore and Eastern Suburbs where plaster town houses predominate (for this read “leaky homes”), it is just a reasonable conclusion to think that free standing houses in good locations are on the right track to rise somewhere in the order of 10% in 2011.
From the figures on our personal sales board, I can say that extrapolation to 10% anticipated growth is about right. There’s a genuine shortage of houses for sale in Auckland when measured from the demand houses for sale chester. Our office is observing that for a good home in “Greater Ponsonby” we can expect in excess of 100 inspections over a 3 week Auction campaign and 4 or 5 bidders is fairly normal. Earlier last month (August) we saw two homes attract in excess of 200 inspections over 3 weekends and the amount of registered bidders exceeded 15 in both cases.
When I compare the amount of houses advertised for sale in Auckland, particularly in the primary medium of the Saturday Herald Homes supplement, it is clear that there’s a drop in available homes of approximately 40% within the volumes available 2 or 3 years back, the main difference being that nowadays there are approximately double the amount of buyers having sufficient confidence in their personal circumstances to commit to purchase.
Confidence is on a gradual but solid increase.
In the NZ Herald article quoted earlier, ANZ economist Mark Smith said he was surprised by the REINZ figures. “The escalation in sales volumes was stronger than we’d expected. Sales are continuing to trend up with volumes up 5.4% seasonally adjusted in the 90 days to August.
With sales volumes around 24% below historical averages as a percentage of the housing stock, low mortgage rates available, and a greater labour market environment, there’s considerable scope for sales to go higher,” he said.
Being an industry observer and participant, it is clear that in general terms the long run is bright for anyone looking to transact in houses for sale in Auckland, and that some regions (normally clustered round the CBD) will show very positive growth over what is a huge gloomy preceding 3 years.Jun 14, 2021 Real Estate Read More