If you’re considering buying your first home, recent changes in the real estate market mean it could be a great time to do so — especially in Auckland. With prices flattening out and an increase in stock available, buyers can have confidence that the housing market has turned in their favour.
Statistics for the month of April show the national property market has started to normalise, with Auckland in particular, showing signs of slowing as buyers take time to explore their options. These developments indicate the over-heated market has started cooling, which is good news for first home buyers.
Perhaps you’re unsure of where to start looking for your dream home, confused about pricing of properties, or simply don’t know how you’ll find time to house hunt while juggling a career. We understand it can be confusing knowing where to find the information you need, and we want to help. In this blog we explain what the latest statistics mean for you and why you won’t want to miss this window of opportunity to get onto the property ladder.
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Prices stabilise
April statistics show the national housing market continues to show signs of normalising, with prices stabilising in most regions. In a move away from usual trends, the average asking price for the month was only 2.1% above the previous month nationally, up to $643,460. In most regions, movement was negligible. Exceptions to this were the West Coast, up 23.8%, Wairarapa, up 14.8% and the Coromandel, up 13.8%.
In Auckland, residential property values across the region rose only 10.7 per cent compared to the previous year — the slowest annual growth rate since December 2014. For buyers, these figures show a stability of the market that we have not seen for some time.
Inventory rises
The figures also show an increase in housing stock available for purchase in Auckland, with 31.7% more properties on the market in April 2017, compared to the same time last year. This jump in housing stock is also great news for buyers, with more choice on offer.
The same can’t be said for the rest of the country however, with most regions recording a decrease in stock. Twelve regions had a drop of more than 25%, compared with a year ago.
Demand cools
Nationally, demand for residential housing has gone down by 13.8% over the past three months. Demand is calculated by the view per listing change — comparing a new listing in the previous three months to the same time last year.
At almost three times the national figure, Auckland has the lowest demand nationally, at 31.1% over the period, followed by Waikato at 19.3%.
Other regions with a noticeable cooling in demand include Wellington (down 13.4%), Bay of Plenty (down 11.3%), Canterbury (down 9.4%) and Central Otago (down 9.2%).
These latest figures shows a significant change in the housing market — one that favours buyers on a number of levels. Auckland is the only region with more stock than a year ago. Combined with asking prices that have virtually not moved since March this year and a cooling in demand, it really is a buyer's market out there!
If you’re a first home buyer, don’t wait. These stable market conditions mean it could be the perfect time for you to start house hunting.
