The housing market is undergoing a few changes as it grapples with the new LVR (Loan to value ratio) rules that the Reserve Bank of New Zealand has put in place. The stock of houses has been tight for a few months but more seems to be coming on the market now. Where it all goes from here is anyones guess. I think this quote from Albert Einstein is worth remembering.
“When the number of factors coming into play in a phenomenological complex is too large scientific method in most cases fails. One need only think of the weather, in which case the prediction even for a few days ahead is impossible.”
Auckland house market shows unmistakable signs of slowing
For the first time in 5 years, the Auckland housing market is showing unmistakable signs that prices are stabilising, and may even be plateauing.
"There has been a definite change in the market in the last month," said Wendy Alexander, Chief Executive Officer of Barfoot & Thompson.
Here are a few data points that might be of interest to you.
Source: Barfoot & Thompson
Point of interest: The five year interest rate has not been this low since I don't know when.
Source: Interest.co.nz
Renting in West Auckland
The average house price, and average weekly rent for a three bedroom property in West Auckland in July 2016
Source: Barfoot & Thompson
Please leave me a comment if you would like to see other information covered in this Market Update.