It is no secret that pricing is on the rise in Auckland, with house values having increased by over 5 percent across the city in the last three months of 2014 alone.What is interesting is that across the country, property values are rising at a much slower rate with Christchurch going up by only 1.7 percent.
These trends are seen as a result of the increased demand in housing with a slower rate of supply on the market. Jonno Ingerson, Director of Research at CoreLogic states, “There are unique things about Auckland that set it apart from the rest of the country. Strong net migration, [high] consumer confidence and low interest rates are fuelling demand, while a shortage of housing stock and a relatively low percentage of properties for sale are holding back supply.”
Additionally, as banks try to gain a larger market share through lowering their fixed interest rates and offering various discounts to the ever increasing number of first home buyers, the rising trends are set to continue in Auckland.
Household debt across the country is also on the rise reaching 165 percent, meaning that collectively, people are borrowing more than they earn.
It is a sad fact that if you do not purchase now, you will be paying more later. Those who are looking to purchase a new home, should seriously consider their options and don’t let emotions cloud their economic judgment when it’s crunch time.
Property marketing trends*
When it comes to marketing property for sale, most sellers in Auckland opt for an auction. Research by CoreLogic — based on sales during 2014 — show that more than half (54 per cent) of sellers in Auckland auction their properties rather than publish an asking price (21 per cent), selling by negotiation (20 per cent), asking for inquiries (3 per cent), or using a tender (2 per cent).
Looking at New Zealand as a whole, asking-price rises to 36 per cent, auctions slip to 27 per cent and 21 per cent of people sell by negotiating a price. Inquiries are 12 per cent and tenders 4 per cent.
*Source: NZ Herald (http://www.nzherald.co.nz)
