The New Zealand economy has recovered at a solid pace since the recession in late 2010. The recovery has been better than most of our peers.
Strong net migration, the Canterbury rebuild and an improving labour market remain the key driving forces behind domestic demand. The strength is also particularly apparent in Auckland, with strong population growth turbo-charging its housing market, driving North Shore property values up significantly.
Quarterly sales volumes are also on the increase, having reached a post Global Financial Crisis (GFC) low of 700 sales in the September 2008 quarter – activity levels have recovered strongly albeit not quite to pre GFC 2002-2003 levels. The December quarter hit 1,600 sales in the North Shore, with a slight dip to nearly 1,400 to March. Volumes for the three months to May 2015 show transactions are trending upwards again with 1530 sales recorded. The reserve bank recently revised the OCR level down to 3.25% triggering banks to lower mortgage rates again. With the most affordable money we have seen in recent years this low interest rate environment, combined with the record immigration numbers have all fed the demand side of the housing market, bringing about some of the tightest market conditions ever experience. This is illustrated by the Auckland region weeks to sell hitting rock bottom at 9.6 weeks. Sales volumes are up, with historically lower new listings coming on board, and an already dwindling total inventory, this all equates to the lowest weeks to sell out of all stock ever recorded for the region. Owners excited at the prospect of selling their property for a markedly higher rate than it was worth even a few months ago, are still cautious about the rapidly growing values and what they in turn can afford to move on to. Agency reports are seeing more deals incorporating longer settlements to give their client more time to find somewhere to move onto in this tight market. Read more...
Spotlight on Birkenhead
Birkenhead is located on the north shore of the Waitemata Harbour to the west of State Highway 1, and only four kilometres from Auckland city centre. According to Statistics NZ, the greater Birkenhead area had a population increase of 4.2% between the censuses of 2006-2013, with projections of a 9.4% increase in residents over the next ten years to 2023. Being located in such close proximity to Auckland CBD, Birkenhead is ideal for commuters with regular bus services and ferries being advantageous, and the historic village boasting numerous hospitality options with cafes, restaurants and significant shopping options. Read more...
Spotlight on Milford
The coastal suburb of Milford, one of the east coast bays on the North Shore located 11km from central Auckland has experienced unparalleled median price growth in the three months to May 2015. Milford’s median is now $1,236,000 up 54% over the year equating to an increase of $435,000. Sales volumes in the three months to May 2015 stayed stable on the same period 12 months earlier, although average days on the market dropped slightly from 39 down to 32 days to sell a home on average. Read more...
View the full Marketbeat report here.
Majestic pioneering homestead with secret British Imperial naval history placed on the market for sale