Median sales price up, number of sales up

[donna]

Someone forgot to tell Auckland - NZ is in recession!

According to Barfoot and Thompson - Auckland, they had a bumper month of sales - 1061 properties sold! This is 34 homes sold every day in March.

Plus median sales price was up 8.2%.

Plus lots of more listings - 1952 new listings in March.

89 homes sold - over $2m, and 27 homes sold over $3m

Average sales price = $1,227,495 up 11.3%

Barfoot and Thompson currently have 5741 listings.

“In March, buyers made the decision that at current prices property represented value for money and that they were prepared to live with mortgage interest rates at current levels.

“Now that confidence has returned to the market, there is every prospect that buoyant conditions will continue through Autumn.

Recession - what recession?

regards,

Donna

[Jeffa]

Seeing similar price increases in Wellington

Over supply doesn’t matter unless

1/ Interest rates increase ( Adrian Orr doesn’t think so)

2/ Unemployment increases at least above 6% currently 4%

3/ Population decrease

You would need at least one of these factors for an oversupply of stock to lower house prices

[Jeffa]

What most in the media tend to forget

Bank deposits have been paying 5/6/7 % returns

If your a FHB you have more money for a deposit, If your in Kiwi saver, and you are on an aggressive plan, your Kiwi saver returns should be higher than the deposit returns thanks to the US share market

This rule applies to cashed up wealthy kiwis earning 5/6/7 % on interest in the bank.

The bottom end and the top end of the market likely driving the market.