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As predicted auction turnover rates are historically low for this time of year as are general sales rates. As usually occurs when the market cools as many potential seller are sitting on their homes riding out any fluctuations but when this happens there are often a mix of good value houses for sale (from those whom need to sell or are getting out of the market) and some which are unrealistically overpriced.
-Mark- 25/02/22 OPINION: House Sales Slowing / Auction Success Rates Decreasing
House sales and auction success rates have been negatively impacted by a mixture of factors including Covid, minimal immigration, the bright line extension plus bank lending restrictions and higher interest rates. The pendulum has swung to being a buyers market, at least in the short term but this could remain for some time. So far this has had minimal impact regarding values and historically this type of swing has balanced itself out over the cycle. The impending “recalibration” of bank lending restriction will come as a positive to mainly the lower end of the market.
2/12/21 OPINION: Buyers market in the New Year?
There is somewhat of a slowdown regarding turnover related to demand. With the new bright line extension plus bank lending restrictions and higher interest rates I would expect it to become more of buyers market in the New Year. If the decline continues auction may not be the best way to sell.
-Mark- 5/12/21 Covid Framework Inspections / Conditions Please see the specific inspection requirements under the trafic light system steps -Mark- 7/09/21 Level 3 Inspection Conditions Covid 19 (August Delta) 2021 inspection requirements (In addition to the standard T and C’s) Please note the specfic requirments -Mark- 18/08/21 NZ is in Covid Level 4
As such no inspections are being conducted. Due to the nature of the outbreak and unspecified timeframe of lockdown, at this stage no forwards bookings are being made.
-Mark- 28/07/21 OPINION: Shortage of stock / Month on month increase There is an obvious shortage of listing and although prices continue to outstrip inflation the lack of stock, talk of interest rate rises, and the new tax on landlords is affecting turnover. New builds are being snapped up with fierce competition for young Kiwis returning home and first home buyers but there is also completion from landlords due to the tax exemption on new builds. Generally the bulk of the new builds are in green-field sites rather than one-offs and are aimed for the lower end of the market including KiwiSaver members. The higher throughput of lower cost houses has artificially skewed the medium sale price but in reality the sale average of North Shore house continues to increase significantly month on month when balanced over the year. There has not been the doom and gloom predicted by most pundits at the beginning of the Covid outbreak which has not materialised (in fact prices have jumped hugely unexpectedly) but as always in a boom, the peak must round off at some stage. -Mark-
19/05/21 OPINION: Returning Kiwis / High sales turnovers Kiwis continue to return in droves (when they can) but this may be somewhat offset by the lack of new Kiwis. Sales turnovers are still high but there are supply pressures and the lack of stock in some sectors of the market, particularly at the lower end of the market. This may be addressed somewhat if landlords start of offload the stock in regards to the new tax. -Mark- 19/03/21 OPINION: Houses are selling like hot cakes / Covid / Auctions
Houses are still selling like hot cakes and for top dollar irrelevant of Covid issues and pending LVR adjustments. Most houses are being auctioned with a surprisingly high number of theses being bought forward due to a pre-auction offer being accepted. Be prepared, get onto the due-diligence as soon as possible so you are no caught out.
Usually a slowdown in the market would be expected for winter but this is no ordinary year or circumstances. The long term post Covid outlook is still as unclear as ever although in the short term (from March 2020 when Covid hit) the predictions of a sizeable downwards correction in the housing market have been well off the mark.
-Mark- 12/11/20 OPINION: Hot Housing Market / Limited Stock / Returning Kiwis
The Auckland housing market is running as hot as I have seen it since 2008 but agents are hampered by very limited stock. Regardless of the impact and future ramifications of Covid crisis there are many factors spurring on the mark. Besides record low interest rates these include an optimism that NZ has is over the worst of the Covid and future outbreaks will be able to be managed, plus the very likeness the LVR’s may be removed in a few months. This is compounded with an extremely high amount of Kiwis retuning home. - Mark- 07/10/20 OPINION: High Demand For Inspections. Inspections are back to normal in Auckland but Covid appears to have now heated up the market with a high demand for inspections. -Mark- 23/09/20 OPINION: Covid Impact & Outlook The long term impact of Covid 19 wont be know for some time, or even years, but currently the market is rocketing forward. This is largely across the board but more so for starter and more basic houses. Currently I am the busiest I have been since 2008. - Mark-
The housing market in Auckland has largely stabilised with increased sales and achieved prices at the lower to middle end of the market in particular. There is an elevated level of demand for houses for first time buyers. Anecdotally this can be attributed returning kiwis and those game to jump into the housing market when there are still some deals to be found while having the confidence that interest rates will remain low for some time to come. -Mark-
No COVID-19 restrictions remain in place but for the foreseeable future suitable enhanced separation and hygiene precautions will be practiced. -Mark-
A crystal ball would be great to have as would hindsight but history has shown a pattern and outcome regarding major negative events on the New Zealand housing market. From what I have seen after such events (Black Friday 87 & the Great Financial Crisis 2008 etc) the market slows considerably and house prices initially fall, but recover over the year as does turnover. Generally kiwis don’t like to sell their houses while the market is at a low point and would rather wait it out till the market recovers. There are no indications that this will not be the case this time around, but there are some positive factors with the cycle this time around which may help speed up a recovery. These include record low interest rates, kiwis returning home in record number, and the ongoing effects being more likely to only hit a few sectors significantly (such as tourism in particular). Additionally the Reserve Banks easing up on LVR (Loan Value Ratios) to trading banks (& hence customers) and a possible glut of former Airbnb suited houses may well be a significant boost for first home buyers as would be 95% loans if this occurs, as it has been touted. -Mark-
Harbour Home Inspections has just upgraded to its new '.kiwi' website, domain name and email address '@buildersreport.kiwi' superseding the 2002 era 'hhil.co.nz' website and email. www.hhil.co.nz and enquires / firstname.lastname@example.org will be retained for the foreseeable future. -Mark- (223052)