Blue skies ahead for the property market
The beginning of the new year offers investors a bevvy of information about the state of the market. When you're thinking about property investment opportunities, the time of year can actually be a big factor. The most recent data from the Real Estate Institute of New Zealand (REINZ) reported that not only are households basking in the beautiful summer weather, but the bright sun is having favourable effects on the country's property market.
While prices declined 5.3 per cent from December, REINZ Chief Executive Helen O'Sullivan said this was typical of the summer period and nothing to be particularly concerned about. In fact, property prices swelled 6 per cent over the 12 months to January 2014 and the number of properties sold was similarly up 2.6 per cent on last year.
"The data for January reflects the typical summer slowdown at this time of the year, with volumes dropping back and prices easing across the country. December was a strong month, so the slowdown in January was a little more pronounced than usual," she said.
Meanwhile, Auckland in particular is reaping the rewards of the warm summer days. High demand for property in the City of Sails has consistently pushed prices forward over the past 12 months, with median prices in the Auckland swelling 16 per cent – and, once again, its impressive growth continues to drive property performance nationwide. While national median property prices increased by 6 per cent in January, excluding Auckland sales brings the level of growth down to 1.8 per cent.
"Listings across Auckland remain very low by historical standards and this, coupled with continued high demand, is seeing prices inevitably move upwards," Ms O'Sullivan said.
"Increases in supply from new construction will help to ease this position, but for the present the lack of listings is the main impetus driving Auckland dwelling prices."
While it can be tempting to dive head first into Auckland's investment market, the lack of listings means it could much more difficult to find a property that matches your price expectations. It's therefore more important than ever to get informative property investment advice to help you avoid being swept up in the price wave.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert