Despite many reports claiming it is not a good time to buy in Auckland, the New Zealand Herald is giving locals hope that housing prices are starting to level off.
According to propertyIQ’s House Price Index, median house prices across the wider Auckland area rose 10.2 per cent in the past year to the end of January, and 5.1 per cent in the year prior to that.
This was largely due to a higher demand for housing in the city following the Christchurch earthquakes and low levels of housing construction.
In fact, prices rose so high that Auckland was recently declared the fourth most unaffordable city in the world to buy property, according to the Annual Demographia International Housing Affordability Survey. The report, which studies 337 housing markets worldwide, found median house prices in Auckland in 2012 were 5.3 times the median income, making it the tightest market in the country and the fourth tightest in the world behind New York, London and Los Angeles.
However, the New Zealand Herald has this week reported that there are early signs that the increases may be slowing down in parts of Auckland.
According to Jono Ingerson, research director at propertyIQ, looking at the statistics for Auckland suburbs over the past year, there have been several suburbs where the rise of property values has dramatically slowed. For example, values in Epsom, Grey Lynn, Mission Bay and Parnell had all previously been increasing strongly but began flattening off at various times throughout 2012.
Yet despite this, many Aucklanders remain dubious about the property market. A study by ASB, found Aucklanders continue to believe that now is a bad time to buy and 66 per cent expect house prices will continue to rise in 2013.
Who will be right? The next few months will either confirm or deny if this slowdown is likely to continue or be temporary.
Grace Removals has strategically placed branches in Christchurch, Wellington and Auckland, servicing all parts of New Zealand. We can help you move to a new home in Auckland if the property market picks up or we can assist you in relocating to another city to realise your dream of owning your own home if property values continue to rise.
