New data from Realestate.co.nz has revealed that Auckland prices are beginning to slow as the average asking price begins to drop down below the record median of $851,531 in September.
Now sitting at a marginally smaller $848,195, this small but potentially significant fall could be the start of a cooling period that may encourage more investors to Auckland as the residential property market becomes more stable.
However, despite this reduction, Auckland still holds near-record high levels, and retains the highest asking prices of anywhere in the country.
North Island presents plenty of opportunity
Investors should also consider other areas of the North Island in their investment portfolio, as the Waikato has reported a stable market, with a 0.4 per cent rise, staying steady at a median price of just above $410,000: property investors in Hamilton will be pleased to see their investment continuing to grow evenly.
Tauranga too may be presenting excellent opportunities for new investors who would prefer to invest outside of Auckland, as the Bay of Plenty has seen a drop of 1.3 per cent, reducing the median asking price in the area to the $480,000 mark. Property almost always increases in value over the long term, so investors should not be too concerned about small fluctuations in the short term.
Lower medians, fewer listings
New listings have also taken a hit, dropping to 8,011, a reduction of 3.3 per cent from a year ago. Auckland and Canterbury were badly hit, suffering a 6.6 per cent listing rate drop of 6.6 per cent. However, Wellington experience a fall of 24.5 per cent in new listings, showing a far more significant drop.
New investors would do well to keep an eye on this potential cooling or downturn in the national market, as it presents an opportunity for Kiwis with the know-how to build wealth through property investment at the right time.
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