New government hasn’t panicked market
Monday 6 November 2017
The October house sale figures from Barfoot and Thompson are out, and they reveal the market hasn’t been too spooked by the change of government.
There’s been little movement in values, with the average Auckland selling price still hovering just below the million dollar mark at $910,537. This does represent a drop of 0.9% on the previous three month average, however.
The median house price in October was $830,000.
“The Auckland housing market has been unfazed by the political change that has occurred,” said Peter Thompson, the managing director of Barfoot and Thompson.
Although prices of properties sold through Barfoot and Thompson declined by nearly one per cent, Thompson says that when looked at when considered over of a three month period, values remained stable.
“There has been no panic selling, any hopes of post election price increases have evaporated, the new Government has done no more than confirm its pre-election commitments and buyers are still being cautious making purchase decisions.”
Listings for October lifted to 1733, which is the highest level since May, But sales were sluggish, at 634 they represented the slowest October for seven years.
Thompson says that a third of the homes sold in October went for under $750,000, with nearly ten per cent selling under $500,000.
He continues that market is well positioned for the year’s strongest sales period.
“The market is now well set for an active run into year end.”
Comments from our readers
No comments yet
Sign In / Register to add your comment
The risks posed by rampant house price growth and high household borrowing have peaked and the scene is now set for a rebalancing, according to global ratings agency Standard & Poors.
Further changes have been made to the government’s unreinforced masonry securing fund (URM Fund) which assists earthquake proofing work.
New Zealand’s lower economic growth was acknowledged by the Reserve Bank in its OCR statement today – which means there's a chance their next call could be more doveish.