In this edition of Professionally Speaking, we'll be talking about a few current hot topics in real estate. We’re now in that final run to Christmas, and the marketplace is a very fascinating place indeed - let's get into it!
There’s been lots of discussion about what’s happening over the last few 'winter months' in real estate, with some even saying that there might be a bit of a slow down. But in reality, when we look at it, we've recently been affected by wet weather, school holidays, the change in the government lending rules, and local government elections. These things have all had an impact on the marketplace, but two things remain that are real determinants of what’s happening in the real estate space. We still have an increasing amount of demand, with net migration numbers still high, and interests rates are low - and even looking to get lower.
How does the Auckland market compare?
One of the things we tend to be fascinated with is how the Auckland market compares to the rest of the market, and how those numbers relate to the rest of the regions. The best way to picture this is that Auckland is like a bucket, with a tap constantly filling it up and it has now reached the point of overflowing. Those prices have lifted to the top of the bucket, and are now flooding the rest of the regions in the country. But rest assured that the tap is still on, and the market demand from buyers for properties is still high.
One of the interesting side effects about this market shift out to the regions has been a change in methods of sale. Auctioning is a method that we talk a lot about, with Auckland usually being the dominant player in auctions, we’re seeing that the popularity of auctions in Auckland has slightly decreased, while the popularity and success of auctions in areas like Wellington, or the Bay of Plenty are really starting to lift.
You may have noticed this in your area, with your local agencies promoting auctions as a method of sale. So why is this happening? It's happening due to the increased demand in both buyers and vendors wanting to get a realistic view of the market. An auction is a successful public forum which allows this realistic market view.
What's happening in the marketplace right now?
As we look forward at the market during our run towards Christmas, and onto the summer beyond. So what’s happening in the marketplace right now? We're getting reports from other agents all around the country, and even in Auckland saying that the market is really starting to get busy. People are seeing the warmer weather, and taking that opportunity to make the move before Christmas. Also, investors may now start to come back into the marketplace as they’ve re-established themselves after the government rule change.
You can expect to see more demand, and more busyness throughout the marketplace as we run towards the Christmas deadline. Beyond that however, and on into 2017, we do have a lot of confidence that the market will continue to be busy, and that prices will continue to rise.
So don't wait. If being in the real estate market, either through buying, selling or investment is your thing right now, it's a good time to act. Make sure that you’re following the golden rule- buy and sell on the same market, if you can.
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