The national real estate picture
According to Quotable Value Limited (QV) NZ’s property market will plateau for the rest of this year and into the next. In fact, Dunedin was the only main centre with any material growth in May, up 1.1%, a whopping four times more than any other main centre. Nice work people, you even pipped Wellington, where prices went south in May by 1.3%.
CoreLogic’s Nick Goodall reports that, while Wellington, Christchurch and Auckland are flat, our smaller, regional markets continue to show growth. Whanganui positively smashed it out of the stalls, hitting 5%, however, this bolting regional horse is slowing as affordability starts to bite.
For his part, Infometrics' chief forecaster Gareth Kiernan, calls the national housing market a mixed bag. Here’s Gareth’s logic in point form:
- sales volumes up 1.3% from May 2017
- activity down
- growth steady at 3.7% p.a.
- Auckland and Canterbury weakening.
But spare a thought, and maybe a few dollars off your sale price, for our long-suffering first-home buyers, because the latest government data shows the thumping price rises across NZ’s main cities over the last 12 months have worsened affordability.
Now, the envelope please … these factors all suggest a Mexican standoff between buyers wanting a bargain and sellers wanting an unrealistic price. Let the games begin!