Who's right B&T or QV

[Franklin1]

Auckland house prices July

B&T says prices have dropped to average $757000 in July

nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11492292
QV say biggest rise since 2007 to average of $855672

stuff.co.nz/life-style/home-property/70809993/qv-figures-show-house-values-rising-at-fastest-rate-since-2007

That's a big difference in stats.

[ivanp]

Barfoot and QV are using different measures to gauge activity in the market, Barfoot's using the median sale price while QV uses the average value.

This is a key paragraph from your NZHerald's link

[Wayne]

They always have used different measures and usually, when comparing, the media says so.
Barfoot also work on sold data whereas QV work on sale completed (title changed) so there is a lag with QV.

[PTILoveYou]

My interest of both articles was Barfoot's experience with the highest activity in July for the past 15 years!

Hard to think that the market is topping out when activity is at an all time high!

[Wayne]

My interest of both articles was Barfoot's experience with the highest activity in July for the past 15 years!

Hard to think that the market is topping out when activity is at an all time high!

hard to think there is a shortage of property with so many sales.

[PTILoveYou]

hard to think there is a shortage of property with so many sales.

Yeah I always wonder where all the immigrants live, not like rent prices are sky rocketing.

[Wayne]

Yeah I always wonder where all the immigrants live, not like rent prices are sky rocketing.

If rents aren't sky rocketing like house prices then there isn't a housing shortage is there?

[Damap]

All this activity is entirely reminiscent of the beginning of the GFC. SO many of us got caught because the market was doing, well, exactly what it's doing now. NOT SAYING we are heading for another recession my point is just that activity alone does not make for good predictions.

[donna]

NZH - Auckland Council say housing shortage to peak in 2018! That's 2.5 years away - and that AKL will need 25,000 homes.

Media talk of AKL housing shortage is now into it's 5th year.

This from RADIONZ today

BNZ worked on 80 percent of consents lodged, actually being built. If a figure of 90 percent is used, the shortfall declined more rapidly and was eliminated by 2027.

So 10 more years?


Cheers,

Donna

[Lovethiscountry]

Quote from Gary Lin (Yeah I always wonder where all the immigrants live, not like rent prices are sky rocketing.)


Likely rents are not increasing much because investors are buying more houses and hence increasing the rental supply

[brokerman]

Went to a Seminar last week hosted by Bank economists. Auckland is short of around 25,000 dwellings to meet current demand, let alone future which is skyrocketing. Prices will continue to rise. Here on the Hibiscus Coast property is selling so fast the ink is barely dry on the flyers!

[PTWhatAGreatForum]

All this activity is entirely reminiscent of the beginning of the GFC. SO many of us got caught because the market was doing, well, exactly what it's doing now. NOT SAYING we are heading for another recession my point is just that activity alone does not make for good predictions.

Agreed it's a bad sign.

In context a large proportion (I'd think majority) of NZ is not having this absurd mania. Now with the dairy slump....

[cube]

Rents can only skyrocket within the tenant's ability to pay.

[PTWhatAGreatForum]

Rents can only skyrocket within the tenant's ability to pay.

This is going to need to correct, but how?

1. Real Estate crash?

2. High inflation? (which will cause high interest rates and could well lead to #1 also happening)

[speights boy]

Went to a Seminar last week hosted by Bank economists. Auckland is short of around 25,000 dwellings to meet current demand, let alone future which is skyrocketing.

Demand....did I hear you say demand ?

But the PM and others continually tell us their building plans will solve ALL the problems.