Despite the ramifications of the lockdown and the annual expected winter dip, the property market is holding its own, with some welcomed good news in both the residential market and house price predictions. Here’s what you need to know: Property Market Remains Buoyant Throughout July Property market is holding out strong as we pass the halfway mark of the year, with nearly twice as many homes being sold at auction in the first week of July as in the same time last year.
Interest.co.nz monitored 230 residential property auctions in the week from June 29 to July 5, which saw more than twice as many sales achieved at auction compared to the equivalent week of last year. Of the 230 properties marketed for auction in the week of June 29 to July 5, sales were achieved on 132, giving an overall sales rate of 57%, in the week of July 1-7 last year sales were achieved on just 62 properties, giving an overall sales rate of 43%.
Prices have also remained strong, with 81% of properties sold higher than their RVs, compared to 49% that were higher than their RVs in the equivalent week of last year.
Activity in Barfoot & Thompson’s auction rooms is continuing in a reasonably solid fashion as well, with sales being achieved on 67 properties in the week from 29 June to 5 July, giving an overall sales rate of 54%, compared to 45% the previous week.
House prices defy cold predictions – hold strong another month
New data from the Real Estate Institute revealed that June marked 105 months in a row of prices increases for the country, defying predictions of a decline due to the pandemic, rising nationally 9.2 per cent last month from last June’s $585,000 to $639,000.
Real Estate Institute chief executive Bindi Norwell commented that these positive numbers defy the gloomy predictions that house prices would fall significantly post-Covid, “With wage subsidies and mortgage holidays still in place, and demand for good property exceeding supply, we wouldn’t be so bold as to say there won’t be an easing of pricing in the coming months when these support mechanisms come to an end. But right now, Kiwis’ love affair with property continues unabated – especially with the low interest rates we currently have in the market.”
In the Auckland region, prices increased when compared to the same time last year in all districts except Papakura which saw a 7.9 per cent fall in median price from $710,000 to $654,000. Auckland city was the only area with double digit increases, with a 17.1 per cent rise to $1,147,500, $13,500 off the record set in March this year.
-by Ravi Mehta, from Professional Financial Solutions