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February 2018 Update
Last year was a year when the residential market nationwide and particularly in Auckland ‘held its breath!’ This on the back of a looming election, the convoluted result, and with it, much talk about property, tax and immigration. Altogether these factors had both buyers and sellers go into a ‘wait and see’ mode. The result was a 20% drop in sales throughout the Auckland market.
To add to the degree of difficulty in 2017, banks were generally very tough on lending criteria and LVR restrictions for investors bit. Add to that the general state of confusion generated by the new council valuations, and it’s not difficult to understand why the residential market became something of a ‘stunned mullet’. People’s lives however go on. People get married, make money, lose money, circumstances change etc. In short it feels like we have left 2017 behind and are now in catch-up mode.
In spite of it all however, and in the face of commentary around a ‘softening market’, while sales numbers are down – sale prices remain stable and in fact have risen slightly. It seems as though buyers now recognise this and have decided to buy, similarly, sellers can see that, in fact, it is not a bad time to sell.
Recent share market shakes will no doubt have some take a fresh look at the time proven stability of residential property, interest rates remain low and demand per-se actually never went away, it just got parked!
Call us optimistic, but we see 2018 as a time when the market will return to more ‘normal’ levels. While values may not climb as dramatically as recent years, it’s hard to see how ‘waiting for the market to fall’ is a sensible option.