by Paul McBeth
While slump’s the word being used to describe the local housing market, some improvement is likely for next year.
Meanwhile, it’s already good news for buyers based offshore as, taking advantage of a depressed kiwi dollar, they snap up some bargains.
ASB Bank’s latest economic report, headed Housing Market in a Slump, says it’s likely to remain weak for the rest of this year as the migration outflow, high interest rates and an oversupply of housing continue to bite. The number of dwelling consents last month was 34 per cent down on September 1999, while national house sales fell more than 19 per cent.
However, ASB Bank economists say that, over the medium to long term, the outlook is more positive. That’s because:
Bayleys Research reports that the very low dollar is already encouraging more American and English buyers into our market. It says a significant number of these are expats either looking to buy an investment property or a residential/lifestyle property they can return to permanently or for holidays.
Most of these are being sourced off the Internet, with many purchasers then getting local friends or relatives to check them out. Recent sales handled by Bayleys to offshore purchasers include: