Posts tagged Papatoetoe house prices
Property market update report for October
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The property market in Auckland remains balanced and stable with homes turning over at a relatively slower rate in recent months as listings remain relatively high.

We are finding homes are taking a while longer to sell given the current stock levels, however, there is still a good percentage of homes selling each month and values are reasonably consistent. Sellers are finding that in a balanced market, prices need to be competitive from the get-go and aligned with current market conditions and buyer activity if they are to sell. The silver lining to that, of course, is that prices are relative; so, if you're buying and selling in Auckland in the same market, it balances out.

It's also worth noting that in Auckland over the past 20 years, property prices have nearly doubled every 10 years, as the median 10 year rise is 96% which you can see in the chart below (this data is using REINZ House Price Index). When you compare this to all of NZ, Auckland has sustained a relatively consistent higher 10 year growth in prices that are well ahead of the NZ total at 88%.


Regardless of the rates of values and turn over, the balance between demand and supply always needs to be considered in assessing market activity and property values.


Are the house prices going down in Auckland?

Not according to QV house prices index they haven't.

QV predicts that the Auckland value growth will slow a little in the coming months while other areas pick up through until December. Some real estate figures have shown the median sales price to have dropped, but the median sales price tends to drop every year between July - August, and there has been more activity at the lower end and less at the top which pulls the median values down

Auckland is up 22.6% annually or 6.7% over the past three months. The fastest increases in Papakura at 11.4% and Manukau at 9.0% over the last three months. This shows more interest around the outer parts of Auckland due to affordability.

Hamilton has experienced a large increase (according to the index) is up 9% over the previous three months - making that the fastest rate of increase in Hamilton since 1989!

Worth noting also is that the monthly index is based on the previous three months of sales data so based on this, in the past month they have increased at a rate of more than 6% per month - now that is what I call a superb investment return!