Slowdown in house prices
Friday 20 February 2004
Number of properties worth more than $600,000 has fallen; Real Estate Institute says gloomy predictions may be to blame
By The LandlordThere has been a big drop in the sale of higher-priced homes around the country.
The number of property sales worth more than $600,000 fell from 507 in December to 270 in January.
Sales of properties from $400,000-$600,000 dropped by a third.
In the major metropolitan areas, house sales in Auckland city are down from $396,750 in December to $364,000 in January, while metropolitan Auckland prices have fallen from $331,500 to $319,000. However, North Shore prices increased from $352,000 in December to $360,000 in January.
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Housing confidence has been dealt a hefty blow by the Covid-19 crisis with house price expectations plummeting to new lows.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.