People hesitating to buy may rue the day as prices rise and rent increases inevitably follow.
A word of warning. Do NOT buy cheap properties just because they seem cheap. I am seeing a lot of people gorging themselves on cheap boxes in poor suburbs and going broke under the weight of repairs, rent arrears and Mickey Duck valuations . There will be tears . Stick to mid range popular areas in the leafy suburbs and you should do very well.
Mortgage deals boost property sales
Low mortgage rates – the result of strong competition among banks – brought the housing market back to life in May, with an almost 25 per cent increase in sales year-on-year.
Latest Real Estate Institute of New Zealand data shows 7,175 houses were sold unconditionally in May, up 24.4 per cent from last year and up 26 per cent on the number of properties sold in April.
The median sale price was 5.4 per cent higher than a year earlier, at $369,000. Auckland prices rose 7.8 per cent in the same period to $500,000.
Real Estate Institute chief executive Helen O’Sullivan said sales volumes were surprisingly strong in May, with all regions recording increases in sales.
”May is typically stronger than April, ranking as the third busiest month in the year for real estate sales, but the increase is considerably stronger than normal seasonal trends would suggest. This is likely partly driven by good deals on interest rates during the month, and a desire by buyers to complete purchases before winter,” O’Sullivan said.