Auckland's ballooning property market has shown its first signs of deflating, opening the door for property investment.
In the latest Trade Me Sales Price Index, figures show that in the three months to July, the average asking price for homes in Auckland fell 2.2 per cent.
The market in Auckland has been under the spotlight of late because of its disproportionate growth with the rest of the country.
In fact, further statistics from Trade Me reveal that in the 12 months to June 2015, the average asking price for residential property in Auckland skyrocketed by $130,950. Meanwhile, the average increase across the rest of the country was just $13,950.
This means the growth in Auckland was more than 10 times the rise across the rest of New Zealand. If only you had bought investment property in Auckland last year!
It's not too late
Fortunately, according to Head of Trade Me Property Nigel Jeffries, the decline recorded in July may be just a temporary speed bump.
"Historically we see a dampening in expected sale prices in winter, as sellers wait for warmer months to list their properties on the market. We'll be watching the coming months with interest," he said.
In the three months to July, the average asking price in Auckland eased to $756,700. However, this is still a whopping 18 per cent more than at the same time last year.
While one month doesn't confirm anything, you should keep an eye on the markets and study the ups and downs so you can get a notion of where it's going.
It's also a good idea to seek property investment advice from a professional, as they will be able to give you valuable insights and direction to help ensure any decision you make is an informed one.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
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