MARKET GOING MAD?
(Comment: The big mistake was to give several months notice of the new LVR and tax rules to come in September.
Now every man and his dog is climbing in before they take effect.
I predict that the market will rise even higher before the new rules come in, and then pause as they are digested, only to continue upwards once everyone has worked out how to get around them.
And remember most of the market is unaffected by either Mums and Dads buying and selling without restriction, or by those who can raise the money in any event.)
“Auckland’s property market continues to increase 10 times faster than the rest of the country, new data has shown.
Trade Me Property’s June price index has revealed the average asking price for a residential property in Auckland had increased by $130,950 in the last 12 months – 10 times the average increase across the rest of the country.
The average asking price for a property outside Auckland increased by just $13,950.
In Auckland, the average asking price is now $834,300, while elsewhere the average is $404,550.
Trade Me Property head Nigel Jeffries said it was clearly a two-speed market.
“The ‘Auckland Effect’ is casting a huge shadow over the residential property market as a whole as it continues to go mad”.