James Aston waiting for the weather to change
With Median house prices showing fairly subdued growth for Auckland, autumn seems to be bringing about a chill.
Interestingly the median house price in Papakura showed some of the strongest growth in the 2017 financial year(19%), perhaps due to the continued growth in borrowing from first home buyers?
We have approved a few low deposit home buyers under the Welcome Home Scheme, which at least hands over some fairly sharp pricing with a catch. The catch is the home has to be $600k or less or $650k if new. If the government moves to increase this to $650k – $700k there could be some tidy profits for those buying in the lower range.
My own view is that this winter could provide for a market thaw. There are many home buyers who are waiting on the sidelines, waiting for prices to head down further. Due to the fact the fundamentals remain strong(ok economy, low rates), home buyers might discover that they were actually waiting for prices to head up before buying.
If prices remain flat or head up slightly, the built up demand may go shopping in the same month.
