The Auckland market has a reputation for having huge growth and enormous values, but recent data from QV indicates that the tables may be turning.
Opportunity has come knocking for Kiwis new to the Auckland residential property market , as prices have dropped by 0.4 per cent over February and are now down a full 0.8 per cent since December. Barfoot and Thompson (a major agency in Auckland) have seen its listings in the city double compared to January, hitting a heady height of over 2000 as reported by the New Zealand Herald.
What does this mean for buyers? It means that prices are beginning to slip and there are plenty of people wanting to sell. If you're looking for a first home or are willing to ride out the potentially-brief drop in prices, you could be grabbing an Auckland property for a bargain.
Outside of Auckland
Current property owners in Auckland might be starting to sweat after this two-month drop – perhaps it's time to diversify out to Tauranga or Hamilton? These more distant city centres are continuing to see strong growth, as QV reports Hamilton increasing value at 10 per cent per quarter for September and October.
This value growth have slowed a little in the new year, settling at about 5 per cent per quarter in recent months, though this still presents an excellent opportunity for the myriad sellers in Auckland deciding to cash in on their properties.
A final word of caution, however: QV reminds us that there is a "strong historical link" between the number of sales and changes in value – that a fall in the first results in a drop in the second after a few months. With the New Zealand Herald reporting only 698 Auckland sales from Barfoot and Thompson in January, it might pay to wait and see what else the market has in store.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
Contact us now!