July property update report
Interest in the Auckland property market has dropped on the back of ever increasing house prices and falling returns for investors.
Auckland average asking prices rose again to another all-time high in June to $888,493, but searches on realestate.co.nz for properties in the city has fallen, says CEO Brendon Skipper.
It could be a turning point for Auckland, with prices now at an all-time high they’re almost out of reach for the average income earner, with first home buyers the hardest hit.
During June, the number of users searching Auckland houses ‘for sale’ on realestate.co.nz fell by 19.33% compared to this time last year. Although searches for properties in Northland, Hamilton, Tauranga and Queenstown were up significantly in June compared to the same period last year.
From that data, it appears Aucklanders still want to stay in relatively close proximity to Auckland but in terms of affordability they are forced to move even further afield, or they are making lifestyle changes.
With the shortage of listings and the speed in which properties are selling, it’s still a sellers’ market. However, while there is a shortage of listings, the drop in buyer interest is a positive sign for getting more equilibrium in the marketplace.