With the America’s Cup now in the trophy cabinet, the shortest day behind us and interest rates stable, the glass is undoubtedly at least half full in the Auckland property market. While commentary continues to point to low sales volumes, the big picture includes the fact that Auckland’s population is projected to double over the next 25 years and along side that the housing shortage is unlikely to be resolved anytime soon.
So why the sluggish market? Two things – firstly we are suffering the pause prior to an election and secondly, the 40% deposit limit on investors has had an effect. The flip side however is that in the preferred areas we serve around central Auckland and the Bays, there is actually a shortage of options for many buyers looking to purchase.
The current reality is that our open home attendance is robust, our auctions have been well attended and most vendors are enjoying buyer competition for their property. This fact is born out by our 50% clearance rate on the day and 81% during the auction period.Add to this one of our strongest June results on record. In short while there is much talk and various interpretations of the markets direction, we are not expecting a significant down side looking forward. Our prediction is that the market activity will bounce back post-election and that Auckland will respond to the positivity of an America’s Cup win.
The speak around interest rates is that they may trend upwards – it appears this is not imminent and will only be slight. In the meantime rates remain low. Add to this Dairy prices turning around, strong population growth, a tourism and construction boom– the big picture is New Zealand Inc. is doing well. In short. If I was a buyer I would not hesitate to act. Every home is different, you still have to find what you want, never easy – and the medium term future is bright. Plus there is always a bounce in activity post-election. If I was a seller, I would look at how many similar homes/properties are being offered in my area right now. The answer is probably very few – I would take advantage of that and list now.