Auckland’s housing market will provide little relief for first home-buyers nor investors amid an estimated 40,000 property shortfall which seems unlikely to be realised given a flat line by mortgage providers.
Diverting investors into building new properties was the Reserve Bank’s key to alleviating the city’s shortage of affordable homes but restrictions in lending and in offshore fund draw-downs for buyers has seen a significant hand brake applied to purchasing.
Auckland still needs over 40,000 new houses however demand has been largely from property migrators rather than investor buyers which has impacted directly on buyer demand and funding misalignment.
The Reserve Bank loan-to-value restrictions have been slowing the market for some time and possible rising interest rates in 2018 will consolidate that slow-down and reduce price pressure by scaring some out of the market. Property investors have represented between a quarter and almost half of the market and the removal of this group from the market has had a direct and significant impact on the Auckland market.
Further to this, mortgage providers will need to show flexibility to allow buyers choice and confidence to invest. Let’s consider the sales.
Herald Island residential $2,350,000
Hobsonville residential $665,000 to $1,860,000
Massey residential $560,000 to $1,450,000
Royal Heights residential $450,000 to $1,056,000
Taupaki lifestyle $1,200,000 to $2,200,000
West Harbour residential $710,000 to $1,056,000
Waitakere residential $720,000 to $769,000
Waitakere residential $850,000 to $1,685,000
Whenuapai residential $1,300,000 to $12,200,000
So whatever you decide and when you decide, it costs nothing to give us a call, or get us around, for a discussion about how we support you through the marketing and decision making process associated with selling your home or investment. Great thing with Mike Pero Real Estate is that you could save thousands in commissions and receive our complimentary multi-media marketing package including TV and Magazine exposure at no cost to you. Give me a call directly on 0800 900 700 or go to www.grahammcintyre.co.nz. Licensed REAA (2008).