Property market health check
Friday, May 8th 2009, 5:58PM 
3 Comments
Next week is going to give us a good feel for what is happening with property prices across the country. On Monday we will have the latest QV statistics and, assuming history repeats, the Real Estate Institute figures will be out later in the week.
The feeling is that the market is starting to flatten out. This week’s Auckland house price data from Barfoot and Thompson showed the number of sales are increasing but prices aren’t. One possible theory is that the Mexican standoff between sellers and buyers is easing and vendors are now accepting prices around 9-10% less than they would have a year ago.
Clearly property investors and first home buyers are more active in the market and it wouldn’t be a surprise to see a shortage of stock in the lower price ranges.
What do you think?
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Comments from our readers
On 9 May 2009 at 11:12 am Andy said:
There is still a big gap of opinions between real estate agents and vendors. The vendors who have not yet really realized and understood where the market actually is and the real estate agencies who are trying hard to keep a straight face and have to be obviously always keep thinking positive to get a listing [no listing-no income]. The honest real estate agencies will tell you either straight where the market is and to achieve a quick sale advices to go to auction. This of course has some truce in it, as an auction reflects the market sentiments truthfully and for the vendor and real estate agencies creates quick results. The reality is that for the honest and good sales real estate agent it does not matter where the market is as a sale is a sale where the opposite is just no income. The reality is that we are flattening out the question is for how long, but going on the Alan Bollards directive we are in until the end of 2010 what the OCR is concerned. The other reality is how long will it take to heal the wounds of the over borrowed people to lick their wounds and to come back to market and start investing aging as this is the only thing that will lift the market again as a whole. On 10 May 2009 at 9:33 pm Finance Freak said:
Agree.
I am not pursuaded with a surge or strong support for a rebound as at this stage, no external factors are showing this.
No capital inflow from foreign, unemployment is a concern, over leveraged households are in distressed financial situations and required to sell, economy is contracting. First home buyers can't drive the market up or do any speculations and with a 20% deposit requirement, properties are still not very affordable in NZ.
Given this time US could possibly be heading to a depression, it will impact the whole world.
On 11 May 2009 at 5:25 pm John said:
If I were to put any of my houses on the market, I would hold out for a 2007 price. That is because soon prices will be back to that level. It will not take long for the market to recover and my guess that will start in spring. Only people with no choice would sell cheaply now, knowing that price rises are around the corner. I think there will be a shortage of houses very soon as people realise it pays to wait - even for 6 months. Commenting is closed
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