December statistics provided further confirmation that the housing market has cooled. At the same time there is an apparent calm about the market. With confidence that whilst volumes are low, and prices have corrected slightly the market remains stable and this recent correction may well have prevented something more drastic happening to the property market.
- North Shore sales volumes in December were the lowest since the 2008 GFC. There were 213 North Shore sales in December 2018 compared to 278 in December 2017. 2017 and 2018 annual trading volumes were relatively similar, with 2018 volumes 4.6% lower than the prior year.
- Median prices on the North Shore also saw a decline of 11.6% to $980,000 when compared to December 2017.
- Days on the market have crept up sitting at a median of 40 in December.
There is an eclectic combination of factors contributing to the current market, ultimately producing an element of more than usual choosing to ‘wait & see’. Some of the factors influencing the current market are the introduction of the new Overseas Investment Act, the declines in the Australian property market and potential Capital Gains Tax for investors. On the contrary, Auckland has a housing & rental property shortage, low-interest rates and not to forget ‘the North Shore is a great place to live!
In summary, housing prices may remain steady or even dip slightly due to the overseas investment ban; however, the population growth suggests a continuous demand. With the development of new apartment blocks and projects underway, buyers do have more of a choice at the moment. Nevertheless, we still see groups of buyers walking through open homes.
Whether you’re looking to buy or sell, or do both at the same time, I suggest that we establish a property profile for you first to understand your opportunities in the long-run.