Wow how quickly the tables can turn, it does feel like there is a change in gear across NZ in terms of the housing market. After three years of pretty much declining and flat house prices, the previous three months delivers positive momentum. The latest month of data in the REINZ NZ property report shows positive median house prices in most regions. In Auckland, this is further supported by auction rooms filing up now. Median prices were up in September by 2.9% on the previous month and then October its 5.9% higher again.
Median house prices
Auckland City (from Manukau to Waitakere) was up 10.8% in October compared to the previous month. All other areas up from previous month, with Papakura and Manukau up around 4%.
Outside of Auckland we are seeing increases of 4%+ in Northland, Waikato, Bay of Plenty, Hawkes Bay, Taranaki(7.8%), Marlborough and the West Coast (7%).
Trading up
When you are buying and selling in the same market it doesn’t matter as much if the market moves up. So not a lot of urgency to get in quicker. The nice thing in a flatter market is you do know where you stand and it is possible to get things done without having to rush at Auctions. This is window is quickly closing I feel for a lot of traditional type homes in Auckland. However there is still plenty of choice when it comes to townhouses or new build properties.
Investing and First home buyers
I think the thing here is to remember its the time in the market not the timing. The key thing is to make a move when you are ready and your cashflow is robust enough to weather many years of being in debt. Trying to time the buying is a dream I reckon and opportunities only really reveal themselves in retrospect.
