House prices remain solid in the “leafy” suburbs of Auckland ( as I always advised) but continue to languish in the poorer areas such as Mangere and Otara.
Likewise smaller towns in the country have fared badly from the effects of the recession e.g. Rotorua and Taupo. What this means is that selective buying and careful analysis is required together with some sound advice.
Do not follow the herd or listen to the spruikers who push this or that suburb or this or that type of property. Each prospect should be considered on a one-off basis.
Of course house prices effect rents and that’s a totally different story. If you want to know where the best areas are to get the best rents you will have to have a chat with me.
Some things just have to remain confidential- for my client’s ears only.
And there is the matter of statistics which although useful, can be misleading. The problem with statistics is that they mix together all the figures into a “porridge”and ignore the special deals ( both good and bad) that may have occurred in a given area.
I have clients who have bought in the suburbs and areas that are praised or criticised who have done very well -thank you very much- and others who have bought into “good areas”, and now seek my help to get them out of a problem.
Each area, each suburb, each street or indeed which side of the street all have different characteristics and can make a huge difference between profit and loss. These facts get lost in the blur of statistics so when viewed in detail, things are not always as they appear.
Each proposal should be analysed carefully ( after all there are hundreds of thousands of dollars at stake each time) and decisions made, not on statistics alone, but on the special facts and figures each unique property presents.
We are not yet in a “boom” where buying anything would produce a profit. But we are in a market where selective buying can produce huge gains if done cautiously and with all the facts available. Getting sound advice before leaping into any tricky waters can be a financial life saver.
Auckland property market out in front
By Jamie Morton
Monday Mar 5, 2012
A new property report reveals North Island house prices are trailing Auckland figures, which are nudging their way back to their pre-recession market peak.
The Property Report, published in today’s Herald, shows average house prices since the 2007 market peak have climbed throughout Auckland city, but prices in other North Island cities are up to nearly 18 per cent below what they were four years ago.
QV’s national house price index – based on sale prices against rating capital valuations – showed the average Whangarei home was 17.5 per cent cheaper at the end of January than at the peak.
Rotorua prices were down 15.4 per cent, Taupo’s were down 14.5 per cent and Tauranga and Hamilton prices were down around 11 per cent.
In Hamilton, QV spokesman Richard Allen said that while there was some activity from people buying their second or third home, the top and bottom of the city’s market remained generally stagnant.
“Nothing has changed much in the last six to 12 months, with no discernible lift in sales or price,” he told Property Report.
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Having said all that the market in Auckland shows considerably more strength than many believe as underlined by Auckland’s biggest real estate agency Barfoot & Thompson latest news.
It follows as surely as night follows day that the ripples will spread and in a few years we will be looking back at the “nightmare” years as just another bend in the road.
Barfoot and Thompson records strongest February Auckland house sales since 2007 with average price up 1.2% from January to NZ$536,069
March 5, 2012 – 10:22am, Gareth Vaughan and Bernard Hickey
Barfoot & Thompson, Auckland’s biggest real estate agent, says it sold more houses in February than in any February since 2007, and although the average price was up only 2.7% from a year ago, it has sold more houses for above NZ$1 million in the first two months of the year since 2007.
Barfoot & Thompson said it sold 764 houses in February, up 145, or 23%, from 619 in February last year with the average price for the month at NZ$536,069, up 1.2% from January, and up 2.7% on February 2011. Sales were also up 81, or 12%, from 683 in January this year.
It was the strongest February in terms of sales volumes since 1,033 sales in February 2007.
“Prices are edging up, but only at a modest rate,” said Peter Thompson, managing director of Barfoot & Thompson. “It is also a normal part of the regular market fluctuation for prices to increase in February over those for January.”
Thompson said the market segment where the most noticeable change took place was in the NZ$1 million plus price range.
“In February we sold 41 homes for in excess of $1 million, compared to 29 in February last year, and this followed on the sale in January of 40 $1 million homes, nearly double the number for the previous January,” said Thompson.
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