19 percent drop in AKL City is the exception not the rule

[donna]

We'd all be a bit concerned if our properties had dropped in value by 19% since November given the worst is still ahead of us. What the Stuff article suggests is - investors have probably dumped flats and apartments in the central city since November - and who'd blame them!

$200K drop in median price since November is the result for AKL city - but for the Auckland region the drop is on 1.3% (not much of a story in this statistic!).

What may interest everyone is the drop in sales volume. November 21 - 3102 houses sold. February 22 - 1741 houses sold - a 44% drop. This must be hurting real estate agents - and as it's an industry that is transient - many of the opportunistic agents are sure to leave it to do something else now the 'easy money' is not there for them.

What will these real estate agents do? Not property management - that's also a sector struggling to hang on.

cheers,

Donna

[McDuck]

We'd all be a bit concerned if our properties had dropped in value by 19% since November given the worst is still ahead of us.

Donna

Considering the massive capital gains since the year 2000, a slight correction now isn't important.

Think about it. Long term players have already made a killing, and newbies have a lifetime to make one.

Unless you are selling at a lower price than you paid, the only change will be fewer reasons for the council and insurance companies to boost their charges.

It's only a paper loss.
Just as it was a paper 25% gain.
Have faith in your reason and remember that emotions can be a bit misleading at times.

Once houses and stocks and even reserve currencies become the plaything of speculators, a roller coaster of prices can be expected.

And just when ever did people expect to get something for nothing?

Work, build, invent, be productive, all this money for nothing stuff rots the soul. What did my old navy buddy used to say. " your arms and legs aren't painted on".