[sasvanb]

Hi there all you lucky people who've made it accross the pond...

I am one of those despairing UK home owners trying to sell so I can come join you!.. and I'm just wondering what's happening in the NZ housing market at the moment? Is it slowing? Can it possibly be as bad as things here?? (I seriously doubt it)... I was just wondering. Any comments, thoughts and ponderings happily received...

Cheers

Saskia


P.S My husband and I hope to move to the Wellington area.

[Belmont Babes]

Hi Saskia.
So sorry for you Guys on the housing thread, trying to sell. I can only speak for the area we are in but there is definitely a slow down in the market here. It is predicted to slow further up until August/Sept and then ??? There are loads of new houses being built near us and they seem to be empty and sticking. One in particular that we have looked at started off at $519000 and is now wanting anything around $440000. I think a cash buyer could get it for even less. We are tempted but a tad too soon for us.

[Rusty]

I have also been watching NZ house prices on sites like trademe and realestate. The prices appear to be coming down, even adverts saying make an offer or, more common, below RV. I just don't know if they are selling at all.

[benandclare]

We are thinking of dipping our toe in again and to sell our house we have been advised to market it at what we bought it for 8 months ago, to get the sale to secure the property we're interested in :nice1

[mgbridges]

As a general gut feeling and purely from looking at our local rags property pages and glancing in the local estate agents windows from time to time the NZ market has definitely slowed down. Quite a few places that we looked at last Aug/Sept are still on the market, several that went on the market earlier in the year are now being advertised as "price reduced" or "all offers considered". Also quite a few places that were on the market for sale are now being offered to rent.

We purchased in October last year and it really wouldn't surprise me if we were currently in a negative equity position. However, we don't plan on moving anytime soon (at least 5yrs if not closer to 10yrs) so hopefully we'll ride out the down turn in the market.

Anneliese

[IanW99]

QV website is a good place to check out the current state of the NZ housing market e.g. Property Market continues to ease (https://www.qv.co.nz/aboutus/pressreleases/propertymarketcontinuestoease09062006.htm)

Ian

[batgirl1001]

How are Auckland city apartments doing on the current property market? Do they have a high resale value, in general?

I've checked out Trademe and Real Estate New Zealand and 2-bedroom apartments seem to have a good, affordable price attached to them.

I am thinking of getting a city apartment, if not to stay in, then to invest in the rental sector.

But I am wondering if there is any downside to this, and of course worried if there is a property slump coming on.

Thanks!

[benhila]

Hi

I seem to remember reading somewhere that when the NZ property market started slowing down the greater drop in prices was in the apartments' market. It may be because NZers tend to stick to houses rather than flats and it could also reflect the fact that in a falling market foreign investors (who may invest in flats to rent aimed at the business end of the market) tend to pull out or at least do not keep piling in for a quick profit. Mind you, I am not an expert:yes

Hila

[Moorf]

I've been very surprised at the drop in prices - especially round Darfield / Oxford where perhaps the petrol bill is starting to bite those commuting to the city. Properties with land also seem to be coming down in price... back to the levels of about 4 yrs ago judging by the prices.

[sasvanb]

Thanks for all your comments guys. It's kind of reassuring that even if we have to sell our house for less here, that property is also coming down a little in NZ. Swings and roundabouts I suppose!

As mentioned on this thread the peaks and troughs in the housing market can always be tricky, so once we're out there and settled (hopefully!) we'd be looking to buy somewhere with long term potential! No more moving for me!! :yes

[Red Devil]

I've been very surprised at the drop in prices - especially round Darfield / Oxford

Excellent :D... we're seriously looking at settling in Oxford :nice1

[james the mechanic]

We are thinking of dipping our toe in again and to sell our house we have been advised to market it at what we bought it for 8 months ago, to get the sale to secure the property we're interested in :nice1
With agents fees etc. thats (in real terms) about a 5% loss then:(

Excellent :D... we're seriously looking at settling in Oxford :nice1
There you go, living proof...
One man's loss is another man's gain.

[batgirl1001]

If apartments in Auckland are coming down in prices, then perhaps it is a good time to buy/invest in apartment property to wait through the short term until the market improves. The rental prices in the CBD area remains somewhat stable with prices still on the high.

Given the land constraints in the CBD area, I suppose sooner or later land would be a premium in the city and hence rentals would shoot up eventually to accommodate a growing demand for housing in the area. This is what is happening in Sydney and Melbourne in which there is a significant shorting of housing in the city. Auckland will soon experience this phenomenon if the economy and population keeps growing.

[Familyofmonkeys]

If apartments in Auckland are coming down in prices, then perhaps it is a good time to buy/invest in apartment property to wait through the short term until the market improves. The rental prices in the CBD area remains somewhat stable with prices still on the high.

Given the land constraints in the CBD area, I suppose sooner or later land would be a premium in the city and hence rentals would shoot up eventually to accommodate a growing demand for housing in the area. This is what is happening in Sydney and Melbourne in which there is a significant shorting of housing in the city. Auckland will soon experience this phenomenon if the economy and population keeps growing.

Rental prices are also high in area like CBD and near good commuter links because no one wants to buy in the current market....so there is more competition for decent rentals and the rental rates are inflated as a result.

[benandclare]

With agents fees etc. thats (in real terms) about a 5% loss then:(


.


Nearer 3% actually :p. Would certainly not be contemplating a move if we were going to end up losing,but the property we are interested in was out of our league 8 months ago but now in within touch if we can get it for what we've budgetted for. So with the change we had left over from our UK house sale for modest 3 bedroom detached with small garden we are within striking distance of 4 bedrooms with nearly 4 acres in a fantastic location, so think it's a gain for us long term.

However should they not meet our offer we'll be staying put.:nice1

[Moorf]

I hope they do accept your offer - they would be wise to!! Friends of ours moved in to near Oxford area a few months back and offered $50k under the asking price that had recently been dropped by $50k... and it was accepted!!

There are four properties for sale in Waddington and they haven't shifted for near on six months - usually they wouldn't last a few weeks.... and properties in Darfield are hanging around for far longer on the market.

[batgirl1001]

Good luck.

I suppose you can now afford a bigger, better place since the property market seems to be on the sliding slope. So keep your fingers crossed that the seller is desperate enough to sell at the price you are dreaming of.

The seller is probably crying right now....since the market has swung over to the buyer's side.

As for me, I am hoping to pick up a steal on CBD apartments. There must be desperate seller out there who is ripe for the picking

[macuser]

Friend in NZ sent me this. Apologies if you've seen it or its already been posted.


http://www.stuff.co.nz/4609465a10.html


Helen

[Joolzr]

We stayed in a city center apartment - Lighter Quay on Hasley St for two weeks. The one beds are about 320$. But I have to say it was a bit like a glorified portacabin- although lovely inside. The only place I've stayed apart from a carivan where we could hear the rain on the roof... And very cold. But I hear they have dropped a lot in price. I'd expect to be paying at least 30% less than the value a year ago.

JoolzR

Good luck.

I suppose you can now afford a bigger, better place since the property market seems to be on the sliding slope. So keep your fingers crossed that the seller is desperate enough to sell at the price you are dreaming of.

The seller is probably crying right now....since the market has swung over to the buyer's side.

As for me, I am hoping to pick up a steal on CBD apartments. There must be desperate seller out there who is ripe for the picking

[Tia Maria]

Yet another great link IanW99! :nice1

It sums up my experience of the property market in Auckland at the moment:

Auckland:

Property values in the Auckland region increased by 1.8% over the past year (calculated over the three months ending May 2008 in comparison to the same period last year), down from 4.7% recorded in April. The average sale price for the region remained consistent at $508,651.

“The wider Auckland market has shown a continued easing in growth rates, which is in line with our expectations, while average sale prices have eased only marginally on levels reported last month” said Glenda Whitehead of QV Valuations.

“In the Auckland Region, a degree of calm and more rational thought patterns are beginning to return to the market. The imbalance in the expectations of buyers and sellers remains, but we are now beginning to see people make more rational, financial based decisions about property. For some sellers this has meant reviewing asking prices and setting them at levels that will enable a sale to be achieved, for others it has meant withdrawing the property from the market, and either sitting tight or renting it out. In recent weeks, we have seen many examples of the latter throughout Auckland and Waitakere Cities. Vendors appear to accept that it is not the ideal time to sell, and that in many cases they would be financially better off to rent for the short to medium term. Generally speaking there appears to be greater acceptance of the weaker market conditions” Whitehead said.

“Buyers remain cautious in all areas although our valuers note a little more activity in some areas in recent weeks. In the West, tidy homes and those that have been renovated seem to be selling, but dated homes in group housing areas are just sitting on the market. Agents continue to report that buyers are still taking plenty of time, and many vendors remain unrealistic in their price expectations. In general, buyers are being quite aggressive in their offers, particularly those who have already sold their own property. Some normality is returning to the market, with decisions based on personal need, rather than market movements taking place” according to Whitehead.

“Buyer caution can be attributed in part to high interest rates, and it would seem obtaining finance is no longer a given, with banks being more risk averse on who they lend to and how much they will make available” said Whitehead.

“In the south Auckland area, we note that there have been greater downward price pressures in the traditional investor suburbs, such as Manurewa, Papatoetoe and Otara, as residential property investment has become a less attractive option to gain financial reward. The eastern suburbs of Pakuranga & Howick tend to be holding values better, but are taking longer to sell” said Whitehead.

“The CBD apartment market still seems to be suffering from many negative influences. There are stories of vendors selling at losses, with multiple apartments going up for sale at the same auction. Given some of the prices now being paid, this market must start to show good investment returns moving forward” Whitehead said.

From: www.qv.co.nz/aboutus/pressreleases/propertymarketcontinuestoease09062006.htm

Cheers

Tia

[Tia Maria]

I find it very interesting that this piece of news, about a slight increase in prices, didn't rate much of a mention (half a page):

www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10515206

When there have been numerous, property market crashing stories, taking up a lot more space:

www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10516401

And most of the similar articles seem to mainly quote Kieran Trass, who I believe runs this site:

www.suburbwatch.co.nz

So you could probably find out a lot more info by googling his name.

I know in our area they will be reassessing the CVs in September, so it will be interesting to see what figure they come up with!

Cheers

Tia

[IanR]

Property keeps falling - June prices down 2pc

Friday July 11, 2008

The average property now takes two months to sell

* Auckland property prices down in June
* Housing slump drives agents out of business

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10521034

The winter housing slump is showing no sign of abating, with median prices falling by 2.15 per cent in June - from $345,000 in May to $340,000 accordng to official numbers released today by the Real Estate Institute.

This latest fall follows on from last month's drop of 1.42 per cent.

The biggest June house prices declines were seen in Manawatu and Wanganui - both down nearly 14 per cent.

ASB economist Nick Tuffley said the slowdown in the housing market was continuing, judging by the price and days to sell performance. However, house sales had stabilised after their considerable tumble earlier in the year.

"We expect continued weakness in the housing market. To date sales turnover has borne the brunt of the adjustment. Going forward we would anticipate that weaker prices will pick up some of the adjustment process and that sales turnover will not weaken to the same extent."

Tuffley said that given the glut of listings on the market the median price "appears to be holding up comparatively well."

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"Mortgage rates dropped over May and June, which may have given the market a little support in the short term. However, there is still a considerable adjustment process to play out in the housing market through a combination of prices weakening further and some vendors taking their house off the market."

The Reserve Bank would, said Tuffley, continue to expect further weakness in the housing market, given that the demand/supply imbalance remains and household are coming under financial pressure from all fronts.

Today's data did not increase the chances of the Reserve Bank cutting the Official Cash Rate (OCR) on July 24, but neither were they "an impediment to doing so."

He still expected the Reserve Bank to wait until September to cut the OCR, "but it will be a close call".

Pending retail sales and inflation numbers may make a difference to this assessment.

Deutsche Bank economist Darren Gibbs said that the figures showed that house prices were a little more resilient than he had expected based on anecdotal evidence.

"However, with buyers for the most part remaining on the sidelines (pending an expected decline in home prices and lower mortgage interest rates), we continue to expect that a sizeable decline in residential property prices will be recorded over coming months as sellers become more realistic about pricing in the face of ongoing increases in the number of property listings and long selling times."

Auckland and Wellington fared worse than the national average in the REINZ figures, with prices falling 2.24 per cent and 2.26 per cent respectively.

The Auckland median price fell from $447,500 to $435,000, with the metropolitan Auckland median falling from $451,000 to $440,000.

[Sarahfry]

Yeah, definitely slumping. We've been on the market 2 months with 2 agents, had several open homes and no one turned up, have slashed $50k off price so we're selling at the same price we bought if for 3 years ago, and still no interest, and that's in Auckland.

[aberdian]

Things are bad for sellers here in Wanaka - there have have been the same houses on the market ever since we came here with only a few sales , and they've been the obviously good value ones ("motivated vendors" in real estate agent speak :) ).

TBH, it's putting us off committing any money here before we're sure we'll be staying more than a year or two as people seem to expect that it could take a year to sell their houses here! May well be a local phenomenon, but still, we don't want to be stuck with an albatross of an unsellable property if we do decide in the future that NZ isn't for us.