Snow has fallen - the market, not so much.

Well, winter has really shown its face and along with that comes good news for the skiers as snow is falling and the fields are white. In the world of Real Estate nothing has changed much from June’s newsletter. We found a very good article written by Quotable Value that summarises nicely what we have experienced lately. Five key points follow…

1.  Based on the latest QV House Price Index figures, the slowdown in property values has continued in Auckland. (It’s about, minus 0.8% - so near enough to stable really)

2.  It’s almost a year since the Reserve Bank of New Zealand’s (RBNZ) latest round of loan-to-value ratio (LVR) restrictions were released to the market. Investors need a 40% deposit with a 20% deposit requirement for home buyers. Banks are strictly enforcing these ratios.

3.  In addition to this, and perhaps this is the most important factor in Auckland, house purchases made with a mortgage are down 27% compared to non mortgage purchases which are down only 3%. So the property market as such, has slowed a small amount but the mortgage market has slowed considerably. 

4.  Retail interest rates are also slightly higher, so this means people can’t borrow as much as they could previously, a point especially impactful on Auckland where people may be stretching themselves for a high LVR loan.

5.  The general election is definitely having an effect. So many different parties all with different housing policies and so no one is sure until after the election what effect will play out in the housing market. Therefore, many people are holding onto cash and waiting to see.

In saying this, good properties are still getting good results, so presenting the house correctly for the market is vital! We can help you with what to do before bringing a property to the market.

Elect a friend, be in to win!

Don’t forget our special August and September election year promotion. Any one that refers a client to us whose house we list during these months, and then go on to sell before the 15th of December 2017, will go into the draw for a $1,000 VISA Pressy card. This will be on top of the normal $500 ‘refer-a-friend’ programme which all referrers will get as normal. This means the winner will get $1,500 spending money just before the holiday season begins. All you have to do is have a think about anyone you know in your life that may be looking at selling their property and then pass their details onto us and we will do the rest. As always, please remember, advice is always free and mistakes are costly. Referring us is putting your friends in safe hands.

That’s it from me this month. Keep well!