General Market performance update
The median sale price in Auckland overall has flattened yet remains stable. However, Auckland City, Manukau City and Waitakere City all saw annual increases of between 1.5% and 9.5% The median time for a house to sell in Auckland has increased (including most suburbs in Manukau) however the holiday season could be an attributing factor to this.
Auckland’s new listings and inventory levels were both up compared to January last year, suggesting buyers have a reasonable choice of homes to buy at present.
Rise in lending activity
The Reserve Bank of New Zealand (RBNZ) has reported that mortgage lending activity rose again in recently. Mortgage lending flows are likely to remain solid in 2019, but any further increase in activity is likely to be slow and steady rather than dramatic.
The Australian property market versus New Zealand’s?
For those concerned whether the Australian property market slump could be reflected here in New Zealand, you’ll be pleased to know that New Zealand’s lending environment is on a solid footing. Why? 80% of New Zealand’s mortgage debt is fixed, with 33% fixed for at least one year. This gives Kiwi households time to adjust before any interest rate increase hits; whereas most lending in Australia is on floating rates, making it much more exposed to any changes.
General market performance
The market remains stable and this recent correction may well have prevented something more drastic happening to the property market. Contributing factors to the correction in the market place include the introduction of the new Overseas Investment Act, the declines in the Australian property market and potential Capital Gains Tax for investors. Combined with strong listing levels but lower sales volumes has led Auckland to be holding 3 weeks of stock above average - which indicates a buyers market - but only just. On the contrary though, Auckland has a housing and rental property shortage as well as low interest rates.
It will be a year where choosing to align with the best available property expert will be rewarded.