Market summary: 1st Quarter 2017
This month the REINZ reported that March prices bounced back upwards on February. This was surprising but with immigration still high and interest rates still relatively low for the environment here still has good fundamentals for growth. The major factor that has been holding price growth back though are the bank’s lending restrictions. They have effectively lowered the ceiling of affordability for many. Some major banks are stress testing mortgage applicants as high as 7.5%, and the 40% LVR has definitely put a stop to a large portion of investor activity.
Overall the 1st quarter median price per m2 increased 1.25% vs the 4th quarter of 2016 after its big 14.6% drop from its 3rd quarter peak. This recent and slightly unexpected resurgence in March is a big positive for sellers and the months leading to winter and the election should prove interesting as the market seems to have found a stable momentum but with a lot less sales volume.
Check out the numbers & graphs here: Quarterly apartment prices Auckland
As we look back at the median & average price per m2 for this western city fringe apartment market we can clearly see that the peak of the market was in the 3rd quarter of 2016. The Median price per m2 in the 3rd quarter of 2016 was $9,939 and the 1st quarter of 2017 it was $8,597, a 13.5% pull back. If you’d like any more detail about these findings or want a free appraisal on your property feel free to get in touch.
Link to 3rd party articel: http://www.interest.co.nz/property/87066/median-house-prices-rebounded-strongly-march-although-reinzs-new-house-price-index