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HOUSING MARKET UPDATE
Market On Hold
For those who didn’t get around to reading the housing responses from our monthly survey here they are.
• In real estate buyers are waiting in the wings for the budget to give some guidance and those few that
are buying are being very firm in negotiations ensuring they do not overpay in their view. With interest
rate rises forecast and the investor tax implications due the pressure is only going to increase in a tough
property market. Companies and agents are finding times tough...
• Real Estate - Central Auckland. Many double income buyers looking to upgrade - just waiting to see
how much additional disposable income they will have after Budget tax cuts - i.e. expecting 38% rate to
drop to 30% or 32%. Most appear to want to take advantage of low floating mortgage rates and flat
prices and the increased income from tax cuts will be the cream on the cake.
• Residential Real Estate, Hawkes Bay. Volume is low and prices are flat. Anyone selling a home they
bought in the last 2-3 years can expect to achieve a similar price to what they paid for it. We are
expecting volume to lift slightly after the budget, but otherwise a very non eventful year
• Real Estate Very flat/slow
• Real Estate on the North Shore is busy. Prices holding well but the lower priced houses are moving a
little slower as investors wait for Budget.
• Real Estate Johnsonville: Still good sales activity with most sales under $450k. Good buyer numbers
and reasonable numbers of listings available for purchase with a steady flow of new listings coming to
the market
• Real Estate has slowed a bit , the feeling is that buyers are waiting to see if there's any magic pill being
supplied to buyers.
• Real Estate Eastern Beaches looking good. Wellington Residential Real Estate. Less stock. Flight to
quality. No investors. Prices up for good houses, down for average/poor.
• Residential Real Estate Pakuranga & Howick - Slowed considerably, buyer enquiry down, prices have
dropped a bit, still getting a steady inflow of new listings but with unrealistic expectations. Many gone to
'holding mode' pending the budget but I don't think we can put all the blame there!
• Real Estate/valn more buoyant in wellington slower in provinces
• Real Estate - Been tough over the past two years... Confidence improving slowing... Not been easy...
• Pretty static at the moment, but the interest has gained some momentum amongst buyers. Real estate
salesperson
• Real Estate Agency. Sales reasonable over the past 4 weeks, properties more likely to sell under
$700000. More properties coming on the market than earlier in the year, Auction buyers wanting
bargains, Investors waiting until the budget
• Real estate residential - North Shore. Quiet in the East Coast Bays. Open home activity reasonable but
buyers reluctant to commit. Suspect they're waiting for the budget announcement next week.
• Property services Auckland - real estate sales solid but down on previous months. Record low vacancy
levels in our substantial Auckland wide portfolio of managed properties, and lower levels of landlords
thinking of selling. Rents creeping up - emphasis on creeping. Tenants sitting tight. Market still very
price competitive for all services.
• Real Estate - Eastern Beaches. "Where have are the soldiers-I mean- buyers gone? Long time
passing...!" There a few buyers who are making quick decisions, but most are showing no need to hurry,
no need to pick one from the other right now, with a feeling of "There's plenty of time..!" So at the
moment they are controlling the market. That is causing a slow down in sales, and will result in a
shortage of stock as some vendors are withdrawing their properties and rent, to wait for the price they
want. Some immigrant home owners are selling up and moving back to their country, but their purchase
was at a high point in the market and they are trying to recoup their money by listing at too high a price
for the current market! Until they can adjust to the current market, this will also cause a slow down in
sales. Oh - the joys of real estate!
• Property - ok but overall feels like the market is sliding further in both res and comm with some invisible
factors still to play out e.g.: sublease vacant space.
BNZ WEEKLY OVERVIEW
Page 7
• I’m in the real estate industry , still a bit patchy. Most are waiting for the new tax laws to be announced.
• Real estate. Buyers still very cautious. We have noted an increase in some confidence in the $3-4m
bracket in some suburbs, but overall, the market is still tough across all price brackets. (inner east and
west Auckland). Sellers want/ need to sell but not many want to meet the market still.
• I work in the housing market. While there are a lot of listings. They are not selling as vendor
expectations are too high and buyers are wanting bargains. There are no investors buying at the
moment. Banks are also making lending difficult.
• Real Estate, Auckland Eastern Suburbs. After a very slow start to April (Easter & School Holidays)the
month turned out to be our best for the year. A big shift in the mix to $1m plus sales. Investment
property (units / apartments) very lack lustre. Listing now in short supply
• Real Estate Eastern Beaches. Hard to break the current standoff, buyers sat firmly on their hands
waiting - for the budget I think . When the break comes I expect a steady and increasing flow of sales to
take place. I believe prices will hold firm.
• Real Estate in Gisborne remains tight with vendors reluctant to accept market value which is often less
than vendor expectation. Buyers are relishing their power and making negotiation difficult. However,
activity is picking up as people venture out into the market with a view to purchase.
• Residential real estate Christchurch everything seems to be on hold until budget day .We have good
levels of enquiry but converted that enquiry to runs on the board is proving very difficult
• Real Estate in Sunny Gisborne. Not at all happy at what’s happening at present. Residential Sales down
near 50% on usual years.
• Real Estate Industry. We are seeing sellers ready to meet the market and buyers finally starting to make
a move with offers. I think some buyers are just sick of waiting. Investors are back in the market looking
& buying - great news!
• Housing sector - vendors still too high in price expectations and need to get real if they wish to meet the
market. Some sad stories starting to filter through with a few sales leaving negative equity for vendors.
A legacy of excessive borrowing of 3-5 years ago. If interest rates move more than 1% we will see
some desperate vendors out there simply trying to recoup their equity. They may not.
• XX Real Estate, Wellington. Strong demand across all price brackets. Particularly strong in the $2m +
price range with 6 sales over this figure in the last 5 weeks. Plenty of new properties coming to market.
A general feeling of confidence in the market place.
• Real Estate: Good buyer inquiry from locals and also from Australian buyers attracted by the exchange
rate. However many vendors are still asking unrealistic prices. It is a wise vendor who considers the
deal on the table to be a bird in the hand.
• Real Estate City and fringe...We feel that there may be more activity on the horizon however buyers still
very cautious. Shortage now of quality stock.
• Property Investor - Things remain tight with cash flow. Comments from our recent property group
meeting are banks insisting on P&I payments to deleverage risk and more tenants are faulting with rent
payments. With GST going up, interest rates going up and depreciation changes ahead we know a few
new landlords will be exiting the property game.
• Average - Real estate investing
• Property investment. we buy, acquire, for clients. Low end, crappy housing getting hit hard. Good quality
stock that first home buyers can see themselves in still holding up well. Surely budget announcement,
combined with demand supply imbalance, will see prices spike after budget.
• Real Estate - property investors are panicking about the May 20th budget so are sitting on the sidelines
and stressing about changes to adversely effect their cash flow. Also homeowners and investors alike
are very concerned about their cash flow being hit by rising interest rates which look like hitting us in 3
months time, so their spending is restrained and there is far less demand now for housing (compared to
same time last year)...
Market On Hold
For those who didn’t get around to reading the housing responses from our monthly survey here they are.
• In real estate buyers are waiting in the wings for the budget to give some guidance and those few that
are buying are being very firm in negotiations ensuring they do not overpay in their view. With interest
rate rises forecast and the investor tax implications due the pressure is only going to increase in a tough
property market. Companies and agents are finding times tough...
• Real Estate - Central Auckland. Many double income buyers looking to upgrade - just waiting to see
how much additional disposable income they will have after Budget tax cuts - i.e. expecting 38% rate to
drop to 30% or 32%. Most appear to want to take advantage of low floating mortgage rates and flat
prices and the increased income from tax cuts will be the cream on the cake.
• Residential Real Estate, Hawkes Bay. Volume is low and prices are flat. Anyone selling a home they
bought in the last 2-3 years can expect to achieve a similar price to what they paid for it. We are
expecting volume to lift slightly after the budget, but otherwise a very non eventful year
• Real Estate Very flat/slow
• Real Estate on the North Shore is busy. Prices holding well but the lower priced houses are moving a
little slower as investors wait for Budget.
• Real Estate Johnsonville: Still good sales activity with most sales under $450k. Good buyer numbers
and reasonable numbers of listings available for purchase with a steady flow of new listings coming to
the market
• Real Estate has slowed a bit , the feeling is that buyers are waiting to see if there's any magic pill being
supplied to buyers.
• Real Estate Eastern Beaches looking good. Wellington Residential Real Estate. Less stock. Flight to
quality. No investors. Prices up for good houses, down for average/poor.
• Residential Real Estate Pakuranga & Howick - Slowed considerably, buyer enquiry down, prices have
dropped a bit, still getting a steady inflow of new listings but with unrealistic expectations. Many gone to
'holding mode' pending the budget but I don't think we can put all the blame there!
• Real Estate/valn more buoyant in wellington slower in provinces
• Real Estate - Been tough over the past two years... Confidence improving slowing... Not been easy...
• Pretty static at the moment, but the interest has gained some momentum amongst buyers. Real estate
salesperson
• Real Estate Agency. Sales reasonable over the past 4 weeks, properties more likely to sell under
$700000. More properties coming on the market than earlier in the year, Auction buyers wanting
bargains, Investors waiting until the budget
• Real estate residential - North Shore. Quiet in the East Coast Bays. Open home activity reasonable but
buyers reluctant to commit. Suspect they're waiting for the budget announcement next week.
• Property services Auckland - real estate sales solid but down on previous months. Record low vacancy
levels in our substantial Auckland wide portfolio of managed properties, and lower levels of landlords
thinking of selling. Rents creeping up - emphasis on creeping. Tenants sitting tight. Market still very
price competitive for all services.
• Real Estate - Eastern Beaches. "Where have are the soldiers-I mean- buyers gone? Long time
passing...!" There a few buyers who are making quick decisions, but most are showing no need to hurry,
no need to pick one from the other right now, with a feeling of "There's plenty of time..!" So at the
moment they are controlling the market. That is causing a slow down in sales, and will result in a
shortage of stock as some vendors are withdrawing their properties and rent, to wait for the price they
want. Some immigrant home owners are selling up and moving back to their country, but their purchase
was at a high point in the market and they are trying to recoup their money by listing at too high a price
for the current market! Until they can adjust to the current market, this will also cause a slow down in
sales. Oh - the joys of real estate!
• Property - ok but overall feels like the market is sliding further in both res and comm with some invisible
factors still to play out e.g.: sublease vacant space.
BNZ WEEKLY OVERVIEW
Page 7
• I’m in the real estate industry , still a bit patchy. Most are waiting for the new tax laws to be announced.
• Real estate. Buyers still very cautious. We have noted an increase in some confidence in the $3-4m
bracket in some suburbs, but overall, the market is still tough across all price brackets. (inner east and
west Auckland). Sellers want/ need to sell but not many want to meet the market still.
• I work in the housing market. While there are a lot of listings. They are not selling as vendor
expectations are too high and buyers are wanting bargains. There are no investors buying at the
moment. Banks are also making lending difficult.
• Real Estate, Auckland Eastern Suburbs. After a very slow start to April (Easter & School Holidays)the
month turned out to be our best for the year. A big shift in the mix to $1m plus sales. Investment
property (units / apartments) very lack lustre. Listing now in short supply
• Real Estate Eastern Beaches. Hard to break the current standoff, buyers sat firmly on their hands
waiting - for the budget I think . When the break comes I expect a steady and increasing flow of sales to
take place. I believe prices will hold firm.
• Real Estate in Gisborne remains tight with vendors reluctant to accept market value which is often less
than vendor expectation. Buyers are relishing their power and making negotiation difficult. However,
activity is picking up as people venture out into the market with a view to purchase.
• Residential real estate Christchurch everything seems to be on hold until budget day .We have good
levels of enquiry but converted that enquiry to runs on the board is proving very difficult
• Real Estate in Sunny Gisborne. Not at all happy at what’s happening at present. Residential Sales down
near 50% on usual years.
• Real Estate Industry. We are seeing sellers ready to meet the market and buyers finally starting to make
a move with offers. I think some buyers are just sick of waiting. Investors are back in the market looking
& buying - great news!
• Housing sector - vendors still too high in price expectations and need to get real if they wish to meet the
market. Some sad stories starting to filter through with a few sales leaving negative equity for vendors.
A legacy of excessive borrowing of 3-5 years ago. If interest rates move more than 1% we will see
some desperate vendors out there simply trying to recoup their equity. They may not.
• XX Real Estate, Wellington. Strong demand across all price brackets. Particularly strong in the $2m +
price range with 6 sales over this figure in the last 5 weeks. Plenty of new properties coming to market.
A general feeling of confidence in the market place.
• Real Estate: Good buyer inquiry from locals and also from Australian buyers attracted by the exchange
rate. However many vendors are still asking unrealistic prices. It is a wise vendor who considers the
deal on the table to be a bird in the hand.
• Real Estate City and fringe...We feel that there may be more activity on the horizon however buyers still
very cautious. Shortage now of quality stock.
• Property Investor - Things remain tight with cash flow. Comments from our recent property group
meeting are banks insisting on P&I payments to deleverage risk and more tenants are faulting with rent
payments. With GST going up, interest rates going up and depreciation changes ahead we know a few
new landlords will be exiting the property game.
• Average - Real estate investing
• Property investment. we buy, acquire, for clients. Low end, crappy housing getting hit hard. Good quality
stock that first home buyers can see themselves in still holding up well. Surely budget announcement,
combined with demand supply imbalance, will see prices spike after budget.
• Real Estate - property investors are panicking about the May 20th budget so are sitting on the sidelines
and stressing about changes to adversely effect their cash flow. Also homeowners and investors alike
are very concerned about their cash flow being hit by rising interest rates which look like hitting us in 3
months time, so their spending is restrained and there is far less demand now for housing (compared to
same time last year)...
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