Despite this gloom, house prices are showing resilience, registering a 4.5% increase year on year, according to the latest statistics from the REINZ.
And there’s more good news coming in from the agents out in the field, who are reporting first-home buyers have become more active in the market with banks allowing a 10% deposit for new homes, according to REINZ CEO, Jen Baird. Investors, on the other hand, are wary of interest rates and have taken a step back from the market.
Commenting on Auckland’s continued drop in sales numbers in April, Baird says that buyers and vendors are becoming frustrated with the lending criteria’s impact on their ability to transact. “Real estate professionals are having open and honest conversations to ensure vendors understand comparable sales at the time of listing and take buyer price feedback into account when setting reserves and/or considering offers,” she says.
On a more positive note, those who are backed by equity and are secure in a job market with a low unemployment rate, will continue to see opportunity in the market as more stock increases choice, and prices ease. Owner-occupiers are the most present and active in the market, so while we see a softening in the mid to low price range, interest is solid in the mid to high bracket, observes Baird.
“We’re now in the phase of the property cycle where demand has weakened, sale counts are down but prices remain high.”
The fall in attendance at open homes and auction rooms in April was exacerbated by a spate of public holidays – Easter and ANZAC public holidays and school holidays. However, those who did attend our auctions were serious buyers and bidding was strong for the right property, in the right price range.As Baird concludes, “selling by auction creates the ideal environment to establish the market price at a given point in time. Real estate professionals, backed by market and local knowledge, are best placed to advise on whether selling by auction is the right method of sale for your property and stated outcomes.”
Damerell Group, with its team of highly experienced agents and marketing professionals, are in an ideal position to help vendors navigate the current market. Our success rate at auctions continues to return ‘best in class’ figures for the entire Auckland region, and we are committed to delivering a market-leading service for all of our clients, vendors and buyers alike.