QV House Price Index for September quarter: guess what? Going backwards. Auckland leading the fall.
Homes are worth an average of 1.1% less. Auckland's 2.5% less.
And how does that make you feel, really?
Most homeowners won't care because they're not trying to sell. But for those who are, it's depressing.
Now first home buyers are cranking - a quarter of new mortgages went to first home buyers in the first half of the year.
So we've got to ask ourselves: is this really what we want?
When the numbers are bad for owners they're good for would-be-owners.
We're forever complaining about the price of property, until we need to sell.
So if this is the new normal, we'd better get used to it.
It's interesting to look at what's selling. We had another developer —apartments— go bust in Auckland yesterday.
Have a look at the apartments, even the nice ones, they were building - is that really somewhere you'd want to live?
Guess what's not selling? These buildings without carparks.
This idea that somebody will want to buy a Shoebox and catch a bus is clearly not working out - they're taking the longest to sell.
Turns out people also like privacy. Who would have thought?
The bigger story here is that prices are lower and deep down, even though we say we want to fix the housing crisis, most people aren't happy about it.
Ryan Bridge is a New Zealand broadcaster who has worked on many current affairs television and radio shows. He currently hosts Newstalk ZB's Early Edition - where this article was sourced.
3 comments:
If you are selling and buying in a similar market/region, I reckon it matters not what you house is 'worth', unless you have recently bought (at what would be an 'inflated' price).
Pressure on first home buyers would be greatly reduced if house 'values' dropped 20%, as would, as a consequence the inflated building material/labour costs that have crippled us.
p.s. we are about to put our own home (only property) on the market and relocate to another area. We are well into our 70s.
There's a vast pool of potential wealth tied up in homes owned by retirees.
Instead of contimually feeding the retirement home industry, there has to be a way to use this resource to help genuine first home buyers get a foot on the ladder - perhaps a sort of reverse mortgage from individual to individual, bypassing the traditional financial markets?
Of course, you never have to look far to find a reason for not doing something.
Ameni
As I drive around nz I see subdivision earthworks springing up everywhere.
The developers are picking the housing market is about to SPRING into life.
Dig a little into the developers that build apartments without car parks and you’ll probably find a partnership with Kaianga Ora somewhere from the past decade.
They know people don’t want to buy these, they’re being subsided and bribes with taxpayer money.
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