Property Update April 2014
Northern Region MarketWatch (April 2014).
Residential data from New Zealand’s largest real estate group Harcourts shows there is still massive pressure on the housing market in Auckland and Northland, with the average sales price now sitting at a record high of $697,454.
This is up 12% on the same time last year and is a 9% jump on February’s figures.
It is very evident buyers are no longer hesitating about entering the market, despite LVR restrictions and rising interest rates.
There is an understanding that the market is likely to remain heated and prices will continue to rise for some time yet, as our growing population is not yet adequately catered for with new housing construction.
Across the Northern Region, and particularly in Auckland, there is fierce competition in the auction rooms. In Auckland almost half of all properties are now sold at auction and this figure is likely to keep rising. In a competitive environment vendors are well educated that letting the market decide on price is the best way to achieve top dollar.
CEO Hayden Duncan says Harcourts has always predicted the LVR restrictions would not have a tempering effect on prices in Auckland because of simple supply and demand.
“It’s the same thing we’ve been saying since the restrictions were announced back in August. There are more buyers than there are houses. The only way to slow prices in Auckland is the mass construction of new houses to meet the demand. While more construction is planned, we are a long way off achieving the numbers needed. Expect prices to continue to rise for some time yet.”
Harcourts is also experiencing a spike in the total number of listings. There has been a 38.6% jump in March as compared to the same time last year. This increase in activity is largely due to Harcourts’ growing market share.