HIBISCUS COAST MARKET UPDATE – JANUARY 2019

In the news last month…

• Harcourts has reported that December’s average selling price was down 2.1% for December year-on-year.  Harcourts’ average selling price, number of sales, number of new listings and stock on hand were all lower in December 2018 than they were in December 2017.  Our fellow contenders in Blue also reported a lower number of sales in December 2018 compared with 2017.  A range of factors contributed to market uncertainty at year end. These included non New Zealand residents being restricted from buying certain categories of property, the reported major decline of property prices in the major Australian cities, the potential for capital gains to be applied to investment properties in the future and concerns over world economic stability, in part caused by the trade friction between the United States and China.
• The latest Reserve Bank monthly figures show first home buyers are getting a record high share of new mortgage money throughout December.  Combine this with rental shortages and rent rises in our area has lead to an increase in buyer activity on our entry level properties on the Hibiscus Coast.  The mortgage figures from January onward will be watched with a great deal of interest, as the RBNZ has relaxed its loan to value ratio (LVR) restrictions from the beginning of this month.  A similar move in January last year did seem to have an impact, particularly in respect of more FHBs coming into the market.
• Statistics NZ has reported that the percentage of residential properties sold to overseas buyers increased slightly in the fourth quarter of last year, in spite of new rules restricting the ability of overseas persons to buy residential property in this country, which came into force on October 22.  The Q4 figures were lower however to a year earlier, with 2.9% of sales going to overseas persons in Q4 2017.
• ASB’s Housing Confidence Survey has revealed that for the first time in five years, more people think it is a good time to buy property.  With low and steady interest rates, slower house price growth and the perception that recent regulatory and tax changes are likely to dampen competition from property investors set to be the drivers in the boost of confidence.
• Bindi Norwell, Chief Executive at REINZ says “From an Auckland perspective, the median house price in January of $800,000 was the lowest we’ve seen for 35 months with falls across Franklin, Rodney, North Shore and Papakura districts during the month ranging from -0.7% to -13.2%.  However, Auckland City, Manukau City and Waitakere City all saw annual increases of between 1.5% and 9.5% showing that there are pockets of growth occurring across the region.  December and January usually see prices decline and then pick up again in February and March, so we’ll be watching closely to see whether this is just the usual Christmas/New Year slowdown or whether this is the start of something wider.  What we can say, is that it’s too early to call this a trend and it’s too early to confirm whether the Auckland market has actually turned.”
• To read the full REINZ Monthly Report for January<<< Click here

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If you would like to have a no obligation chat about real estate, please contact Anita Dobson on 021 337 093 or email anita.dobson@harcourts.co.nz.
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