NZ real estate market “in winter mode”
Activity in the New Zealand real estate market dipped in the month of July 2014 – a normal result for this time of year.
Real Estate Institute of New Zealand (REINZ) Chief Executive Helen O'Sullivan said in an August 12 media release that although dwelling sales in July were up 2.3 per cent compared with the previous month, the market remains firmly in "winter mode".
In total, there were 5,893 unconditional residential property sales in July – representing an overall year-on-year decrease of 13 per cent.
Ms O'Sullivan remarked that a number of factors may be contributing to the current slow period – including the upcoming election and rising interest rates, which she said are likely influencing buyer behaviour.
She also observed that while the national median house price currently stands at $416,000 – a year-on-year increase of $31,000, this is largely down to price increases in the Auckland and Canterbury/Westland regions.
If you're thinking about purchasing an investment property in New Zealand, it's a wise idea to keep an eye on both national and local real estate figures, as the average for the entire country may not accurately represent your region.
It is also worth looking at the short and long-term trends in your area. For example, while activity in July was slightly stronger than in June, it is lower than it was at this time last year.
You'll also want to take note of trends like property prices and interest rates. Remember, real estate is a long-term investment, so you should not only base your decision on short-term information.
If you have questions about the process of investing in real estate, you should look to a trusted professional for advice. Make sure you do your research and clarify any points you aren't sure about before you decide which property is right for you.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert