Although the market in Auckland is traditionally quieter during this time, sales have still been ticking along.
The latest sales statistics from QV show that the Auckland values rose up to 4.2% at the end of this year, in the last 3 months alone. Nationwide property values increased 4.9% annually, and 1.5% over the past three months. This puts nationwide values 17.9% higher than the previous market peak reached in late 2007.Auckland values rose at almost twice the rate of the rest of New Zealand, up 9.8% (by $68,309) in the last year, and are being picked to shoot up even further this year.
Jonno Ingerson, director of CoreLogic, said the outlook for this year was for values to continue up. Jonno predicts that the sales turnover will remain healthy and steady, but the constraint of new listings will be the factor in rising values. “Given strong migration, continuing low interest rates, a shortage of housing and good consumer confidence, values are likely to keep increasing in Auckland throughout this year...”
Given that during the last three months of 2014, Auckland values rose faster than they did during the 2003 to 2007 boom, the Reserve Bank says it is prepared to introduce further measures to slow down the market if necessary.
This would most likely include lending restraints as the interest rates are unlikely to rise until later on in the year.
Manukau City values rose 9.5% on year and 3.3% since October '14 Waitakere City homes values rose 10.7% on year and 4.4% since October '14 North Shore City values rose 8.9% year on year and 3.3% since October '14 Papakura District values were up 10.6% and 5.6% since October '14