There is a myriad of factors influencing New Zealand’s property market resulting in varied market performance. 14 of the 16 regions in New Zealand experienced annual increases in median prices for residential sales, some with records being broken. Auckland & Canterbury markets have seen decreases in both prices & volumes.
Looking specifically at Auckland’s North Shore market, in January there were 152 sales according to REINZ, the lowest monthly sales volume in over 20 years! The North Shore City median price in January 2019 was $920,000, down 13.2% from $1,060,000 in January 2018.
There continues to be a multitude of factors providing confidence in the market. Overall a positive economy with strong population growth, an ongoing housing shortage and record low interest rates. Not to forget being a very desirable city to live in! On the contrary, factors potentially contributing towards the slowing volumes are reserve banks LVR restrictions, foreign buyer policy, anti-money laundering legislation along with increased requirements for landlords, and a potential capital gains resulting in cautious investor activity.
Heading into February & March when the market typically gains momentum, we are seeing a notable increase in properties coming to the market and buyer activity is high. We will have a better indication of the year ahead this time next month, but in the meantime, it appears positive and a great time to be buying & selling in fair market conditions.
Source: Robert Carter, General Manager of Harcourts Cooper & Co