tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Wednesday, May 25th, 6:31PM

News

rss
Latest Headlines

Correction on the cards?

Decline in national average asking price on Realestate.co.nz could indicate the market is starting to correct itself, suggests the website’s spokesperson.

Tuesday, August 2nd 2016, 9:00AM

by Miriam Bell

The national average asking price fell by 1.3% to $569,971 in July, according to realestate.co.nz’s latest data.

It was the first drop in the national average in three months and came after the record high of $577,527 hit in June.

Conversely, demand, which is measured by viewing sessions, increased by 14.48% nationwide as compared to July 2015.

A number of regions around the country also saw an increase in demand, although Auckland was not among them.

At the same time, markets around the country returned a mixed bag of results when it came to average asking prices.

For example, Auckland’s average asking price was up 1.1% to $898,562 in July, despite a 10.39% year-on-year slow-down in demand.

Average asking prices in the Waikato, Wellington and Marlborough were up, but they were down in Canterbury, Central Lakes/Otago and Northland.

Realestate.co.nz spokesperson Vanessa Taylor said the significant variations in asking prices and demand painted an interesting picture.

It was still to be determined whether the fall in the national average asking price was the start of a trend, she said.

“There have been calls across the nation for measures to rein in house prices.

‘But it may be that the market is actually self-correcting, albeit slightly, with buyers unwilling or unable to meet ever-increasing price rises.”

The decline in demand for Auckland property was first apparent in June’s data and this month’s data reinforces the possibility that the shine may have gone off the city’s market, Taylor said.

Realestate.co.nz’s data also showed that theoretical rental yields in markets where average asking prices are going up continue to drop.

For example, Auckland’s theoretical yield is 3.28%, as compared to the West Coast’s theoretical yield of 8.44%.

This reinforced the idea that many investors appear to be looking for capital gain, rather than rental yield, Taylor said.

Meanwhile, ASB economist Kim Mundy said the Realestate.co.nz data showed historically low levels of inventory and this was keeping the country’s housing market tight.

Nationwide, they expect that the low inventory levels relative to demand meant they expect will keep the pressure on house prices.

“However, the Auckland housing market appears to be slightly quieter than elsewhere, with rising inventory levels. But low inventory levels overall will also keep pressure on prices in Auckland.”

« No property price crash loomingNo stopping value rises: QV »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans 6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 4.29 5.09 5.35
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - 4.19 - -
The Co-operative Bank - Owner Occ 5.45 4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 4.79 5.69 5.95
TSB Bank 5.59 5.14 ▼5.79 6.15
TSB Special 4.79 4.34 ▼4.99 5.35
Unity 5.65 4.80 5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 19 May 2022 10:42am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com