• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Page 1 of 3 1 2 3 LastLast
Results 1 to 10 of 24
  1. #1
    Join Date
    May 2007
    Location
    Wellington
    Posts
    1,520

    Default Average House Price In Auckland Dives 7.50%

    House prices ease in Auckland

    Fri, 08 Feb 2008 05:08p.m.



    New sales figures from one of the country’s biggest real estate companies suggest the property market has stalled, and gone backwards.
    Barfoot and Thompson's January statistics show the average sale price for a house in Auckland fell seven and a half percent, between December and January.
    It also found the number of houses being sold fell even more sharply.

    Home owners in the country's largest city saw the value of their properties fall by an average of almost $1400 a day in the first month of 2008.
    A fall in prices is normal for January, but Barfoot and Thompson say this drop is more than just a normal seasonal fluctuation.
    “I think we've got to be realistic. We've had the highs of the last couple of years but certainly we've got to be realistic for 2008,” says Peter Thompson from Barfoot and Thompson’s.
    But it is the 40 percent fall in the number of houses being sold, from 1000 in January 2007 to just 600 last month - that suggests the property boom is well and truly over.
    “I'm not predicting that we're going to see increases in prices this year but similarly don't think we'll see prices fall too much,” Thompson adds.
    “The drop in sales volumes is significant it's now the lowest number of properties sold for the last six years or so which is about 40 percent lower turnover. That means there is going to be some desperate sellers out there,” says Ollie Newland, property investor.
    Ange Fuller is not desperate to sell her house, but she has noticed a definite change since selling her last house in June.
    Fuller started out selling privately, but has now opted to use an agent.
    "We've got a figure in our head basically that we think this house is worth and that will enable us to go forward with the lifestyle we want to go forward with,” says Ange Fuller, a house seller.
    But it is an approach that some say might have had its day.
    “They should also become realistic with the price, I think a lot of people are over priced they are trying to get yesterday's price tomorrow rather than get tomorrow's price today,” adds Newland.
    While it is too early to make any firm predictions about the direction of the property market It is clear that if today's trend is repeated in sales figures in the coming months - a property market recession could well be on the cards.

  2. #2
    Join Date
    Jun 2005
    Location
    Auckland
    Posts
    3,936

    Default

    Sales volumes and price movements in suburbs have declined Yes.

    However this info is not new as I have been watching it trend on the Suburbwatch website over the past few months.

    Several suburbs data graphs make for interesting reading.

  3. #3
    Join Date
    May 2007
    Location
    Wellington
    Posts
    1,520

    Default

    We could all get king hit this year, possibly 10-20% down for the year, it is not impossible at all. Won't matter to seasoned investors who have great cash flow and solidly located property, the seminar jokers will be in trouble!

  4. #4
    Join Date
    Oct 2003
    Location
    Dunedin
    Posts
    607

    Default

    Latest SuburbWatch trends were also updated today.

    A press release will be issued soon outlining the latest trend analysis of actual property price trends (not based on the inaccurate average price figure which is revealing a somewhat distorted picture as it always does).

    That doesnt mean the trends have been good, we all know they havent, but the exact extent of any value falls will soon be revealed.
    Kieran Trass

  5. #5
    Join Date
    Jun 2004
    Posts
    1,327

    Default

    I think things will pick up a bit over the rest of Feb and March. In Jan I saw more interested parties and offers on a couple of my properties than the previous 4 months put together. Kieran can you give us an idea of how things are looking to you.
    Nigel Turner

  6. #6
    Join Date
    May 2007
    Location
    Wellington
    Posts
    1,520

    Default

    It's obvious, things are slowing and the market is dipping, this will continue for the rest of 08 and into 09. Any donkey can tell you that!

  7. #7
    Join Date
    Jun 2004
    Posts
    1,327

    Default

    Sure it may not sky rocket off like the years eariler but late Feb, March is always the busiest month for real estate. Just spoke to two agents that said it had been quiet for a while and things have just picked up last week when kids went back to school. Sales in a couple of the other offices have increased and they follow on from these offices. Don't get me wrong I not saying it's booming but it has picked up from late last year. Just like I said I had no offers for a few months and then 4 in one week on the same property (cash offers too, 1 of which was higher than I was willing to accept).
    Last edited by Tucker; 09-02-2008 at 02:38 PM.
    Nigel Turner

  8. #8
    Join Date
    Feb 2008
    Location
    Wellington NZ
    Posts
    1,802

    Default

    The chickens of unfetted credit creation are just starting to come home to roost!

  9. #9

    Default

    Quote Originally Posted by Badger View Post
    The chickens of unfetted credit creation are just starting to come home to roost!
    Yep. A 7.5% drop is meaningless as the easy credit driven housing speculative mania drove prices up 150% to 200% over the past 6 years alone. Meanwhile, worker net income available for housing (after subtracting soaring costs of food and energy) has actually declined over the same period.

    The Russell median house that was $200k six years ago is $600k now, despite local median income stuck at $42k. That would be a couple working a combined 72 hrs a week at minimum wage, a common pattern. And no, there has not been a flood of London hedge fund managers buying up Russell. Just look at Russell's Uruti Bay Estate, a forlorn 21 section "elite" subdivision developed at a cost of $6 million two years ago, now returning to weeds. Only five sections ever sold, (probably already back to the mortgagees by now). No houses ever even started, whole subdivision abandoned now. The big con game was smoke and mirrors, leveraged greed and lies. Nobody with real cash money was ever paying the outrageous prices.

    Forget 7.5% reductions. This economy needs 67% reductions to get back to 2001 or earlier pricing to get healthy.

  10. #10
    Join Date
    Jan 2004
    Location
    Whangarei
    Posts
    5,867

    Default

    Bitter Renter,

    I think we can be fairly sure that we're not likely to see any price drops of that size. Russell might have the same problems that Queenstown does with a lack of housing stock and demand from outside investors pushing up prices beyond the means of the locals. This happens in any area that becomes a popular tourist destination. It's unfortunate but it's just the way it is. There are many other small-town seaside communities that are still relatively cheap in comparison if there's work to be found.
    Last edited by drelly; 11-02-2008 at 03:04 PM. Reason: spelling


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Replies: 16
    Last Post: 14-03-2017, 02:02 PM
  2. Auckland median house sale price falls for 2nd month in a row
    By Kbkiwi in forum Property Investment (NZ)
    Replies: 77
    Last Post: 25-01-2017, 10:46 AM
  3. Kiwi Average Wealth Top 5 in the World - Due to Auckland Property Price?
    By chrisgoh in forum Property Investment (NZ)
    Replies: 1
    Last Post: 23-11-2016, 02:15 PM
  4. Risk of Auckland house price crash in eight years
    By webhostienz in forum Property Investment (NZ)
    Replies: 52
    Last Post: 07-10-2015, 07:35 PM
  5. Auckland House price risks
    By Damap in forum Property Investment (NZ)
    Replies: 7
    Last Post: 09-06-2015, 10:52 PM
  6. Auckland house avg price increases over past year
    By Micholas in forum Property Investment (NZ)
    Replies: 1
    Last Post: 25-11-2014, 04:33 PM
  7. House sale price average down $47k in one month - Auckland
    By muppet in forum Property Investment (NZ)
    Replies: 2
    Last Post: 05-02-2010, 09:47 AM
  8. Investment house sales knock average price
    By essence in forum Property Investment (NZ)
    Replies: 0
    Last Post: 14-04-2008, 09:42 AM
  9. House-price increases average 13pc
    By muppet in forum Property Investment (NZ)
    Replies: 0
    Last Post: 13-06-2005, 08:38 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •