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A buyer's/seller's market - confused?

By Paul Lochore

New Zealand’s housing market is weathering the recessionary storm, despite poor predictions, with Auckland house prices holding steady over the past year. Currently a lack of property for sale is driving down turnover, which makes it a good time to consider selling.
 
According to the latest statistics, 1,505 Auckland properties sold in July 2010, compared with 2,024 in July 2009. On the North Shore 277 properties sold in July compared with 400 the year prior.
 
People are concerned about their jobs, their futures and how factors such as October’s GST rise will affect their disposable income, so they are reluctant to do anything in this market.
 
Serious property buyers remain, buoyed by a steady stream of returning expats from less economically sound shores. So sellers with well priced properties, especially in the low to mid price range, have an opportunity to take advantage of the lack of competition in today’s market.
 
There’s definitely a lack of property on the market and that is the biggest price holding factor. But this is a good time to be selling because there is such a lack of good property on the market.
 
With interest rates likely to stay steady in the short to medium term, this is also a good time for first time buyers to consider taking the plunge. They may need larger deposits and have to accept lower mortgages compared to the past as banks have become more cautious.
 
There are so many currents going in so many different directions at the moment that it’s a very difficult market for a lot of people to read. It’s also a very challenging market.”  Prudent investors and home-owners are taking the opportunity to restructure and re-position their investment portfolios to reduce their financial exposure.