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Investors' market for houses - QV

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  • Investors' market for houses - QV

    Investors' market for houses - QV

    By ADRIAN CHANG - BusinessDay Last updated 13:31 03/07/2009
    The majority of people believe the housing market is still a buyer's one, but a lot of buyers are investors rather than first home buyers, according to a survey by Quotable Value.
    The property valuer's survey, released today, found that because of falling property values and lower interest rates, a net 38 percent of respondents believed that now was a good time to buy, up from 30 percent in March.
    A net 21 percent believe house prices will fall in the next twelve months. This is a vast improvement on the net 50 percent who expected the same in the March quarter.
    The survey also found that 31 percent of respondents said they were either buying investment property, or selling off investments, up from 23 percent who cited this reason previously. By contrast, first home buyers' intent to buy fell from seven percent to just four percent over the same period.
    Property values continued to be the strongest factor influencing people's housing choices, with 51 percent of respondents rating prices as a factor in whether or not they would buy or sell in the next twelve months. This is slightly down on 55 percent who said this was a factor last quarter.
    This has had a flow on effect to potential buyers in the shorter time frames, with 20 percent of people intending to buy in the next three months, down from 31 percent, and 23 percent intending to buy between three and six months, down from 42 percent.
    Sellers also seemed to be holding off, with 61 percent of respondents intending to hold back from selling for at least six months, up from 49 percent. However, this was matched by an increase in the number of people intending to sell within three months - 26 percent in June compared to 17 percent in March.
    QV research director Jonno Ingerson said the survey's results showed how varied the overall property market was, and noted that the degree of change between the March and June results show how quickly sentiment can change in the property market.
    "However the overall results point to improving optimism, and clearly more intention to get back into the property market, even if not for a few months," said Ingerson.
    "An overall drop in the number of people intending to sell may signal continued shortages of properties on the market throughout winter, although this may be offset to some extent by more of the sellers looking to sell in the short term," he added.
    Job security started to become more of a factor in housing decisions, with 29 percent saying it was a factor, up from 22 percent in March.
    While the number of people intending to buy in the next twelve months has risen, the timing of this purchase has shifted compared to the March results. Some 57 percent of people are now waiting for at least six months before intending to buy, compared to only 28 percent who intended to wait that long in March.
    All recipients of QV's monthly property value map email sent on 8 June 2009 were invited to complete the survey. 925 responses were received.
    Sales and price data released by Barfoot & Thompson today showed 861 houses were sold by the company, which makes about a third of Auckland residential property sales, in June. This was an increase of 5.8 percent over May and a 54.9 percent increase on sales in June last year.
    However, despite strong turnover, the average sale price for housing continues to edge downwards. The average price in June was $521,791, 2.3 percent down on May, and 0.68 percent down on the same month last year.

    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx