Sales down in NZ while prices rise
Home sales may be on the decline in New Zealand, but data shows prices are taking the opposite path.
The Real Estate Institute of New Zealand (REINZ) reported on July 14 that there were 5,763 dwelling sales during the month of June – a 6.3 per cent decline from the previous year and a 12.3 per cent decrease from May.
However, the national median dwelling price was $427,250 during the same time, representing a rise of $33,250 from June 2013 and $2,750 from the previous month.
"Volumes continued to trend down in June, as they have done for the past several months," said REINZ Chief Executive Helen O'Sullivan.
"We are starting to see a number of regions record annual falls in the number of sales at around 20 per cent, with only modest increases in those regions where sales numbers are rising. At the same time it is now taking five days longer to sell a property than it did 12 months ago."
If you're seeking property investment advice, one tip is to purchase real estate in regions that have shown the potential for significant price gains.
While houses and units in Auckland have certainly been leading the charge when it comes to value growth, there are other, more affordable areas where investors can benefit from rising prices.
For instance, REINZ reported that while 68 per cent of the increase in national median prices on a yearly basis occurred in Auckland, the Waikato/Bay of Plenty region also contributed 9 per cent.
This could make buying residential investment property in Hamilton an ideal strategy for people looking to enter the market.
However, regardless of where you decide to buy, remember it pays to work with professionals who can help you maximise growth and income while balancing tax effectiveness and affordability.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert