Residential property values are dropping like stones according to CoreLogic's latest House Price Index.
It shows the average value of dwellings throughout New Zealand declined by $11,192 in June, to $911,222 from $922,414 in May.
Since June last year the national average dwelling value has fallen $107,548, or 11%.
In Auckland, the country's largest property market, the average dwelling value dropped by a whopping $38,775 in June. It has now declined by $180,186, or 13%, since June last year.
That meant property values in Auckland were declining by $1250 a day last month.
The table below shows the average dwelling values throughout the country and how much they have changed over three and 12 months. This suggests the decline in values is nationwide, with just a handful of districts escaping the decline. Those that have are mostly smaller communities with low monthly sales volumes.
According to CoreLogic, the rate at which values are declining is accelerating, with an average 1.2% decline in June compared to a 0.7% decline in May.
In Auckland the rate at which property values declined in June was almost double the national average, at 3.0% for the month.
CoreLogic's Head of Research Nick Goodall said the acceleration in the rate of decline in average values illustrated the impact of such a long and strong interest rate hiking cycle as stretched mortgage affordability continued to strain demand.
"The latest data may be a speedbump for expectations the housing downturn may have already ended," Goodall said.
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| CoreLogic House Price Index | ||||
| June 2023 | ||||
| Territorial authority | Average current value | 3 month change % | 12 month change % | Change since recent market peak % |
| Far North | $697,291 | 0.3% | -3.5% | -4.0% |
| Whangarei | $743,439 | -2.3% | -11.9% | -11.9% |
| Kaipara | $863,882 | 10.4% | -3.4% | -5.6% |
| Auckland - Rodney | $1,241,812 | -3.2% | -11.9% | -12.6% |
| Rodney - Hibiscus Coast | $1,152,354 | -2.9% | -12.8% | -14.0% |
| Rodney - North | $1,314,527 | -3.6% | -11.5% | -12.9% |
| Auckland - North Shore | $1,414,748 | -3.8% | -11.8% | -15.6% |
| North Shore - Coastal | $1,621,353 | -4.1% | -12.3% | -15.1% |
| North Shore - North Harbour | $1,367,174 | -2.2% | -11.0% | -17.1% |
| North Shore - Onewa | $1,141,067 | -3.8% | -11.4% | -15.3% |
| Auckland - Waitakere | $993,814 | -4.1% | -14.3% | -19.0% |
| Auckland - City | $1,477,131 | -5.0% | -10.8% | -16.3% |
| Auckland City - Central | $1,258,950 | -4.9% | -9.1% | -15.8% |
| Auckland City - Islands | $1,602,178 | -3.3% | -8.6% | -16.7% |
| Auckland City - South | $1,326,103 | -7.1% | -11.6% | -16.5% |
| Auckland_City - East | $1,836,824 | -4.0% | -11.6% | -16.5% |
| Auckland - Manukau | $1,119,720 | -3.3% | -14.2% | -18.6% |
| Manukau - Central | $869,326 | -2.5% | -14.7% | -19.8% |
| Manukau - East | $1,386,318 | -3.9% | -13.7% | -18.9% |
| Manukau - North West | $987,470 | -2.4% | -13.7% | -16.7% |
| Auckland - Papakura | $876,476 | -5.0% | -18.2% | -19.2% |
| Auckland - Franklin | $896,678 | -3.6% | -12.6% | -15.0% |
| Thames Coromandel | $1,177,543 | 0.8% | -2.4% | -10.3% |
| Hauraki | $646,669 | -2.2% | -5.8% | -7.0% |
| Waikato | $729,685 | -3.5% | -9.7% | -12.6% |
| Matamata Piako | $697,349 | -0.7% | -7.6% | -7.7% |
| Hamilton | $803,275 | -1.6% | -8.8% | -11.6% |
| Hamilton - Central & North West | $743,759 | -3.8% | -9.5% | -11.6% |
| Hamilton - North East | $996,165 | -0.8% | -8.5% | -12.8% |
| Hamilton - South East | $739,390 | -1.5% | -8.9% | -11.1% |
| Hamilton - South West | $709,683 | -2.1% | -9.4% | -11.2% |
| Waipa | $888,090 | 3.5% | -2.8% | -3.1% |
| Otorohanga | $520,036 | -2.7% | 0.8% | -12.9% |
| South Waikato | $424,935 | -7.7% | -10.6% | -11.3% |
| Waitomo | $385,115 | -1.6% | -1.6% | -6.3% |
| Taupo | $834,491 | -0.9% | -7.5% | -7.5% |
| Western BOP | $993,646 | -1.2% | -7.1% | -8.0% |
| Tauranga | $1,023,618 | -3.4% | -12.1% | -13.7% |
| Rotorua | $649,950 | 0.5% | -10.1% | -12.3% |
| Whakatane | $731,433 | -2.0% | -6.2% | -7.7% |
| Kawerau | $378,178 | -4.8% | -11.9% | -13.4% |
| Opotiki | $516,464 | -6.0% | -8.4% | -12.1% |
| Gisborne | $593,784 | -3.2% | -9.5% | -12.4% |
| Wairoa | $404,285 | -0.2% | -2.0% | -9.2% |
| Hastings | $766,840 | -1.3% | -12.7% | -15.4% |
| Napier | $747,472 | -1.2% | -13.2% | -16.5% |
| Central Hawkes Bay | $593,599 | 1.6% | -9.7% | -10.5% |
| New Plymouth | $713,833 | -0.1% | -4.7% | -4.9% |
| Stratford | $469,975 | -3.1% | -10.0% | -11.0% |
| South Taranaki | $444,676 | 0.6% | -3.7% | -3.7% |
| Ruapehu | $360,723 | -5.7% | -11.1% | -14.7% |
| Whanganui | $504,331 | 0.1% | -10.2% | -12.0% |
| Rangitikei | $406,680 | -3.6% | -18.0% | -20.5% |
| Manawatu | $607,309 | 1.2% | -10.3% | -12.5% |
| Palmerston North | $636,926 | -2.9% | -12.9% | -15.6% |
| Tararua | $413,229 | 0.9% | -13.0% | -15.0% |
| Horowhenua | $556,736 | -4.3% | -14.2% | -17.2% |
| Kapiti Coast | $806,272 | -3.2% | -16.1% | -18.9% |
| Porirua | $795,534 | -1.9% | -17.3% | -21.4% |
| Upper Hutt | $723,391 | -1.7% | -16.6% | -24.6% |
| Hutt | $768,084 | -1.8% | -16.9% | -23.4% |
| Wellington City | $1,014,340 | -1.0% | -17.4% | -21.3% |
| Wellington - Central & South | $968,311 | 0.5% | -17.1% | -19.3% |
| Wellington - East | $1,114,269 | -3.7% | -18.3% | -21.9% |
| Wellington - North | $959,692 | -1.9% | -17.4% | -22.4% |
| Wellington - West | $1,166,300 | 4.6% | -15.9% | -21.8% |
| Masterton | $553,434 | -5.1% | -19.8% | -19.9% |
| Carterton | $630,469 | -0.5% | -13.8% | -15.8% |
| South Wairarapa | $796,463 | -3.7% | -12.0% | -15.0% |
| Tasman | $780,442 | -3.9% | -10.9% | -10.9% |
| Nelson | $786,320 | -2.8% | -8.8% | -9.9% |
| Marlborough | $690,901 | -1.2% | -7.2% | -7.6% |
| Kaikoura | $643,796 | 6.4% | -0.4% | -4.1% |
| Buller | $342,683 | 0.8% | 9.0% | 0.8% |
| Grey | $367,610 | 4.7% | 3.8% | 0.8% |
| Westland | $392,372 | -5.0% | 2.4% | -5.0% |
| Hurunui | $630,045 | 1.2% | 9.7% | 0.3% |
| Waimakariri | $699,039 | 0.1% | -4.4% | -4.9% |
| Christchurch | $731,964 | -0.5% | -6.5% | -6.5% |
| Christchurch - Banks Peninsula | $790,087 | -1.8% | -8.4% | -5.2% |
| Christchurch - Central & North | $830,911 | -0.6% | -7.6% | -4.0% |
| Christchurch - East | $575,164 | -1.1% | -5.2% | -7.6% |
| Christchurch - Hills | $1,042,057 | 1.9% | -4.0% | -7.2% |
| Christchurch - Southwest | $691,224 | -0.6% | -7.2% | -8.4% |
| Selwyn | $806,066 | -1.3% | -7.3% | -8.1% |
| Ashburton | $536,124 | 1.0% | 1.4% | 0.8% |
| Timaru | $509,643 | -1.6% | -0.1% | -2.6% |
| MacKenzie | $659,357 | -9.7% | -7.1% | -13.0% |
| Waimate | $440,672 | 1.4% | 6.1% | 1.4% |
| Waitaki | $471,274 | -4.0% | -4.9% | -5.2% |
| Central Otago | $779,030 | -1.2% | -0.1% | -1.2% |
| Queenstown Lakes | $1,716,650 | 1.0% | 1.9% | 0.4% |
| Dunedin | $618,271 | -0.4% | -9.4% | -13.5% |
| Dunedin - Central & North | $619,099 | -2.4% | -11.1% | -15.7% |
| Dunedin - Peninsular & Coastal | $602,719 | 2.6% | -8.5% | -12.7% |
| Dunedin - South | $592,041 | 0.8% | -8.8% | -14.5% |
| Dunedin - Taieri | $647,860 | -0.5% | -8.4% | -13.2% |
| Clutha | $400,088 | -1.7% | 2.8% | -4.7% |
| Southland | $497,657 | 4.2% | 1.1% | 0.3% |
| Gore | $418,752 | 8.0% | 7.1% | -1.3% |
| Invercargill | $455,955 | 0.8% | -3.5% | -5.4% |
| Auckland Region | $1,265,438 | -4.3% | -12.5% | -16.8% |
| Wellington Region | $890,451 | -1.4% | -17.2% | -21.8% |
| Main Urban Areas | $1,004,344 | -3.1% | -12.0% | -15.2% |
| All of Aotearoa | $911,222 | -2.4% | -10.6% | -12.7% |
116 Comments
"The latest data may be a speedbump for expectations the housing downturn may have already ended," Goodall said.
It won't stop anyone saying that this time it's the bottom. Accelerating declines going into winter as well won't be the end of it.
According to some Spruikers here, predictions don't need to be supported by facts to back them up,, so it must be true🤣
Wasn't there a "bottom" last January too?
If anything it will be a floor that will likely give way. A wave of selling pressure from those drowning in debt is still coming - fixed interest rollovers...
Im pretty sure since the start of 2022 you will find a weekly or daily article around “rates have peaked” and “the bottom is here”. It became ridiculous last winter, now it’s just embarrassing.
A couple of great examples from last August:
Tony Alexander: Don’t believe the headline hysteria – fixed rates won’t rise another 1%
https://www.oneroof.co.nz/news/tony-alexander-dont-believe-the-headline…
Tony Alexander: Watch out - FOMO will return to the housing market in early 2023
https://www.oneroof.co.nz/news/tony-alexander-watch-out-fomo-will-retur…
Onespoof.
..lol, and he still believes people look to him for expert advice... Tons give it a rest mate ..
The best you could say about him is he is Panglossian, or alternatively the economist equivalent of a d-list actress turning Only Fans tricks for cash.
The market has, once again, reached a bottom.
This is just one more step on its way to the This Time for Real Bottom, which will arrive next month (and the month after that, and the month after that).
Indeed. An ongoing series of kicks in the bottoms of spequity if you will.
Totally agree, for some there is no shame in blatantly lying if they profit from it.
Many of the so called experts calling for bottom won't be able to find one even if it was in vicinity of 2-3 feet.
Spruikers are the new DGMs - constantly calling the upswing and eventually (after several years of being wrong) they will be right.
The Speed Of The CRASH Is Accelerating ! Why ???
10% Interest Rates This Year, Guaranteed ! Stock up on Popcorn. The 2nd Half of the Show is going to be a DOOZY.
Those that heeded the Warnings of The Prophet and St Landers of Cheaper Tomorrow will be Safe.
Unfortunately the Greed of some others have prevented them from learning their mistakes the First Time.
It's getting Vile out there.
There is an awful lot more townhouses with small sections selling at the lower end, I wonder if this is a drag on averages
Does this index not account for house size like REINZ?
Yes I think so, not an average - rather an index that gives information on drop in price while controlling for the size of properties sold.
It has always seemed a bit disingenious to me. How can the average house price in NZ be @ 1 mill, when it would take 4 average NZers to service the mortgage lol.
Do they give a higher proportionate value to upper end of market than it deserves?
I don't see why they can't and shouldn't just do a real average regardless of size of property
Is that 4 average people or 4 people on average wage?
You couldn’t get more contrasting narrative between this article and the one reported by stuff this morning.
Agree. Sharon Zoller was saying they prefer the other index. What's seasonally adjusted mean anyway? The spruikers seem to be convinced prices are flat when (supported by data), they are in free fall. It's all very confusing for the uneducated.
For most the HPI is the best measure to really understand what's going on...
HPI is best and more up-to-date than this series. This report just tells us what we already found out through HPI a couple of months ago.
HPI was quicker to show the fall in prices, and will be quicker to show the flattening of prices (whenever that may come).
Nifty1, after all these months, we can actually agree on something. Through Spruiker guesswork there could finally be something that could encapsulate the narrative. A massive and coordinated pro-property push is probably in the wind that I'm sure you'll be part of. The key question is, will any appearance of a floor result in something that is sustainable (an up-trend) or a dead feline bounce?
In the face of a tidal of fixed interest rollovers, probably the latter.
Seasonal adjustments are a crock....
Agreed. I worked in health analytics for years. Unsurprisingly hospital admissions rise over winter due to more viral infections etc that rise in the winter. Imagine how laughable it would be if we seasonally adjusted! Surely it’s important to understand that less houses sell for lower prices over the winter period. While adjusted figures might help explain a drop off in volume and price between seasons, it’s still a drop off in volume and price.It’s the unadjusted data that is needed to understand the market at present.
Historically best time to buy for price is winter. Not sure now there seems to be no seasons, no spring flush anyway.
Good post.
Winter is when people who try to sell are probably more after a more urgent sale. Plus defects such as water ingress will be obvious, providing a negotiation angle. But those more urgent sales would apply over a range of property values. ie Divorce, death, moving city... And once sold would not need to occur in the next summer. So presumably overall less urgency that next summer.
But to apply a arbitrary seasonal adjustment factor in my view is kind of arrogant. (Not sure if thats the right word).
Aggregated property values should take into account which houses are selling. eg In Devonport on oneroof at the moment, prices are unrealistically elevated most probably due to a few high value houses selling and others not.
Using terms like seasonally adjusted prices in the the stuff article, what's that about, sounds like data manipulation to support a story,
Sales are sales, let the readers decipher how much they think weather plays on the prices.
You would expect more distress in the areas with recent flood history, where's the correlation with that weather.
I have heard, people from Auckland are moving to Christchurch , because of the weather
More likely prices.
But Chch has some brutal weather compared to Ak when the southerly rolls in... Or even just the sheer cold of the frosty mornings.
But of course, like the whole south island, summer is great.
What's brutal a hard frost gone by ten in shorts and t-shirt. And let's face it 0 degrees in Christchurch and 8 degrees in Auckland ain't much difference except in Auckland you then get rained on at that temp or it stays Grey all day. Bit different if say 12 ft of snow like Wisconsin had this winter to a warn 20 degrees in Key West at the same time. People who work in offices think the hotter the better Aussies think so but anything above 20 degrees if you work physically is hard. At 35 degrees you get ball rot yep your balls start to get boils cause the sweat goes to your crutch and if you work all day (cause you are on site) that cobstant salt around your privates you get the idea
"let's face it 0 degrees in Christchurch and 8 degrees in Auckland ain't much difference"
I'd say it's about 8 degrees difference, and to me, the considerable difference between cold and freezing.
Have you ever heard of location location location, there are a few suburbs in christchurch , that never see a frost, and they are in locations with sea and mountain views, and cost about the same as an average house in Auckland.
Yes I have heard of locations by the sea in Christchurch, I lived in Sumner for 11 years, DIY.
Yet I can buy a brand new modern 4 brm house in a nice suburb for the same price as a shit hole in Mangere with Kaianga Ora beside me. I didn't need to start work till ten I will finish at 4 no rush hour traffic cheaper fuel higher standard of living better rental return etc etc
People are seriously talking about moving south if we have another summer like the last one.
With El Nino it will probably be dry.
Kaikoura HPI up 39k and auckland down the same amount.
Your on to something A-man
And they are in droves
Houses still need to come down another 70% before we can have a democracy.
According to the Scroll there will be many examples of homes that once sold for $1,000,000 sell again for 200K or less.
The Prophet has been 100% accurate so far. We are perfectly on Track !
At one time, the likes of Alexander and Church were right too. Success breeds complacency. Complacency produces poor performance. This prediction is one that will not happen.
Of course not, he/she is just being silly.
Edit; he/she will probably show some floating or credit card rate when fixed interest rates don't reach 10% by end of 2023.
Not silly Yvile.
I see your tactic here, all of a sudden a floating rate is not an interest rate. Nice try.
The Vile meter is manifesting today.
sounds like socialism than a democracy.
You have already been told a million times, but you have to be told again, because it still hasn't sunken in. Democracy means that the majority rules. Nothing more, nothing less. Please tell us thay you have finally got it.
We have friends who have just sold and bought in Christchurch, and both the sale price of their 50 year old house and the price of their new three year old house, were above expectations. I was a bit surprised, I thought they would have to drop them asking price, and then I thought the buyer would pull out on a conditional sale, but neither happened
Something is telling me this data is skewed for Christchurch , totally unsure about other places
Low volumes, some mortgage auctions, more low value properties selling than high value. We must be talking 1 or 2 % of the actual houses in NZ sold to generate this data
So the data is wrong because your mate sold his house? Is the earth flat too?
I'm saying the data as presented is not representative of an average house in Christchurch.
But it must be, because it's data collated by CoreLogic from actual sales data not from a survey of DIYman's circle of friends.
A cursory view of CL's about pages quickly and clearly shows that they are on the Spruiker Side of things.
The table above shows Christchurch down only 6.5% from the market peak. That's about half the fall of the nationwide figure. The market peak was pretty crazy, so I think most wouldn't know how high sales prices got and their expectations are lower.
We bought in Christchurch for 700k in 2019, at market peak homes was estimating our place would go for 1.2 million, and it probably would have given how things were at the time. Now it would probably sell for 900k-1M. I would have low expectations given the crashes going on elsewhere in the country, so I could see a sale exceeding those.
Do you mind sharing the addresses of the properties to support this story, just wondering?
Just this week in Christchurch two 5 year old houses both sold for just 4-10% above what they bought for in 2018. Both substantially below CV - the one in the heart of Fendalton was off by $600k.
One of my kids bought another house in Chch recently. it was such a good deal that he was able to keep his old house as a renter. Why can't everyone do that?
Is this sarcasm? I can't tell if this is a serious comment or not.
Boom.. Boom.. Boom... the sound of crashing house prices
Needs more booms as it hits all those bottoms on the way down
According to CoreLogic, the rate at which values are declining is accelerating.
But but but the talking heads said the bottom was in.. Meanwhile banks continue closing branches and sinking headcount policy's, all the while making record profits. Almost looks like the are preparing for something...
Didn’t CoreLogic also call the bottom only a week or two back?
all of our economists are frauds
Meanwhile banks continue closing branches and sinking headcount policy's, all the while making record profits.
Almost an hour wait yesterday to talk to someone at ANZ. Considering the profits, you'd think they could employ a few more bods to answer the phone.
The houses for sale where I live in the $1.5m bracket and upwards are not selling. People cannot or do not want to get the finance. Something has to give. Maybe the vendors should lower their asking prices which are based on silly times. It is going to be fascinating to watch.
i can see FHBers buying in the 5-8oo ks but those wanting to sell at 1.5 mill must be facing no bid at all.......
I predict 200+ comments... 🙄
Aberration/slight revival in Wellington West? I believe this includes a reasonable selection of lower to higher-value suburbs, Makara to Wadestown maybe. Is there a non-paywalled map that shows the delineation?
The sales rate is pretty low in the area but a few have had a sold sign slapped on them. Still quite a few have been withdrawn or are still sitting there unsold with no interest.
I’ve been looking in west Welly for a while. I wouldn’t call it a revival, just more sales of higher priced homes. Very, very little has been listed in what would be considered the ‘entry-level’ category of homes. Just my observation.
Wait. The rate of declines are accelerating? First year declines that already exceeded Ireland's first year falls?
In Auckland the rate at which property values declined in June was almost double the national average, at 3.0% for the month.
3% in a month. Ireland fell between 7% and 9% in a year.
Oh dear, well I hope that magical "we're diffrunt" force kicks in soon.
The scary thing is that we’re not in a real recession yet either. People aren’t losing their jobs or their homes. What happens when we see forced sales?
Hope for recession as depression looms and Banks will be very reluctant lenders so mortgagee sales may leave Banks big property owners paying rates/insurance/security just like UK in the early 1990s what lesson will they learn or is there an agenda here?
Great question Rumpy ! As they are both pickpockets of different sides of our trousers, I would imagine that they just hate the competition.
An employment consultant told me today that she has huge numbers of people applying for all trade type jobs. Some will be doing so in the hope of getting more $. But it makes me wonder why this govt is allowing so many more people in... I can understand allowing medical people in, but I hope that they are targeting those with the right skills sets. AKA Liam Neeson.
Sh.t and I buy in the region that's gone up. Plus building new. Bring it on
Even in reliable interest.co.nz the data reported is confusing…. “
In Auckland the rate at which property values declined in June was almost double the national average, at 3.0% for the month.”
That’s not shown anywhere in the tables that I can see because they report the 3-month average. Please call the providers out on this.
and if it is 3% in June - annualised 36%.. wow!
31% annualized.
Just a comment. Personally I think it is a good time to buy. 1. Should house prices drop another 20% it is a drop on a lower house value. Most people on here seems to just want a house to live in and raise a family and have not capital gains, however am pretty sure by the time you have raised a family you would have gained back the 20% so your wish comes true. 2. From experience 15 year ago i was gunning for a capital gains tax and getting hard on landlords I obviously did not have a house and envious of people who did. 15 years on i loved the capital gain i made and in the two rentals i bought. Mark my words once you buy your own house and you have CG you will look back at this messages with hindsight and I believe made you made the right choice. The alternative is to wait and that looks like a good option now. What else are you going to invest in?
You're obviously another crooked realestate agent.
hahaha no I am employed in an average job. my point is for some reason everyone hates capital gains until they make it. I been there myself.
Exactly just like uni students think education should be free and they should be able to party etc. All changes when they are paying taxes and want the high paid jobs oh how they change their tune
Yeah those pesky uni students who want the same benefits their parents and grandparents had. How dare they!
Wrong. You had to achieve a higher academic achievement to get into university then.
So the high achievers are these days punished so tertiary education providers can get easy money? Their qualifications devalued as we move to a binary competent not competent achievement framework.
Yes so many degrees in crapology and so few jobs wanting that skillset.
Well I didn't go to uni started work at 15 and half left home then to and I am not a boomer. None of my parents/grandparents went to uni. But we didn't expect something for nothing have never had a benefit always paid my way.
As did many. I'm a millennial and had a part time job in 3rd form spraying weeds and sweeping at a factory. Many of my mates also had jobs at supermarkets, fast food outlets, a clothing store, a bike shop. What you're talking about is not something to brag about unless you're feeling insecure.
Fast forward to today, good luck finding a job for a school kid. The supermarkets, fast food places etc are all filled with adult migrant workers. Maybe it's because we got rid of youth wages. Probably a decision made by your lot.
There is no legal minimum rate for employees aged 15 years or younger.
More like a decision made by your lot that voted for them. The oh poor people we must save them MPs the ones that want 16 yr olds to vote most like. Have no qualms about people working and getting life experience good on them. I do have were by these Uni students cry poverty yet walk down a Dunedin St Monday morning and you have to walk on the road cause of the amount of vomit and alcohol empties on the path.
If 16yr want the vote, they can be tried and jailed as adults as well. Can't have it both ways.
The youth age was abolished in 2008 by Labour. The oldest Millenial would have been 24 when Labour were voted in 2005. I'm a Millenial too, but was only old enough to vote in 2009's election.
https://www.beehive.govt.nz/sites/default/files/Starting_Out_QAs.pdf
I think tertiary education should be free and I'm a net tax payer. Student Loan drawdowns are less than $1b per year. Superannuation has increased by more than that over the past 2 years.
I quite like Invercargill having fees free as long as you pass, I'm not sure if still available though. Seems we're seeing the first year is free everywhere now, TBH not up to date with all that so could be wrong. I've paid my loan back
Ha..Uni used to be free and many boomers partied at the same time (but they pulled that ladder up),,sure changed their tune now.
Totally anecdotally but most people i interact with can see the disaster that our f**ked up house prices are causing. Even some of the people who have brought into the whole 'use the banks money to buy more rentals and get rich'' are now realising how bad things are getting in terms of the whole social fabric of our country.
For what it's worth we own our house with no mortgage for several years now and don't intend on 'getting on the ladder' just so we can add to the misery that goes on. It is sickening to see the amount of people in these comment sections who quite simply give zero f's and wanna stack those rentals like some obscene monopoly banker. When is enough enough......
The greed has fully got out of control and it's time to pay the fat man - keep em coming down.
That is very noble of you and I tip my hat to you, hopefully greens envy tax dont get you for 2% of that untapped Capital gains.
Its got nothing to do with nobel champ - its about doing the right thing for our society. Something many 'investors' don't seem to give a fk about as they gotta 'get ahead'......
I realized significant capital gains on the sale of my first home in 2021 after 4 years of ownership. Of course getting a nice windfall is great.
Thing is, you can personally benefit from something, but still hold a moral compass that doesn't align to your best interests. I'd still be stupid to not take the best offer presented for my house, because likewise I'm going to have to present the best offer for our next place. But I can still disagree with how loose monetary policy created these conditions.
I made capital gain when I was in uni and went halves in a house. I didn’t feel like I did anything to earn it. All driven by access to credit. I’d rather earn from productive activities
Correct. Shamubeel would say that there are two good times to buy real estate. Five years ago, and in five years time. Never now. TA would say, buy now, whatever you can afford. As soon as you can. Which one of those two is correct?
Which of those two pieces of advice would have made us more money over the last 10,15,20,25 30 years? Obvious, really.
I'm more interested in what is happening now and how things will likely turn out in the next few years, actually.
Lots of negatives going for houses. Rates high and going higher Auckland council 12bn debt going from 3.7% to 6.5% servicing, 550k households. It's quite shocking how financially illiterate council leaders are, how the heck did we get here??! Interest rates can't go down cause government continues spending and borrowing unabated for social programs and infrastructure, climate related issues, with no clue on how to improve productivity, or innovate to create real economic growth. There's also imported inflation which will remain high for now.
If you don't own a house, sure buy one, it makes sense to invest for long term eg 10+ years plus its yours to live in as opposed to a rental. There's possibly only 5 to 10% downside from here. From investment point of view, rental yields are low, costs are rising on all fronts...eg compliance, insurance, rates, repairs. The calculus has changed for sure.
There's definitely limited upside for house prices next 3 years so why park your money and pay high interest rates 6+% when there's no capital appreciation?
We got here by successive govts trying to appease monarchies trying to make certain no one is offended and listen to overseas economists on how to run a country into the ground. And a long list of other sh...f..k. We gone away from if you work you get ahead.
Where there’s a bottom it might be ref to as an arse?
Oh dear, how sad, never mind. Looks like 2015-17 levels are the Auckland bid levels now, and very little selling above 2mil
Hi Greg. Small typo in the summary title:
"Average house values dropping like stones " should read: "House values have bottomed out and are now (green) shooting to the moon"
You're welcome
Auckland prices down on Corelogic (In Auckland, the average dwelling value dropped by $38,775 in June) and up on B&T (Selling prices edged up, coming in at $1,097,896 in June, up $27,077 compared to May)
How about we don't get too excited either way and wait for REINZ'S HPI mid July?
Just in time for the next OCR review then.
Burn baby burn!
Hot off the press; TA’s REA’s survey states ‘Market Upturn on the Way’. So there you go, panic over.
Wow. He really is shameless. All the way from his Gold Coast escape.
Will this winter be the end of falling price or.........................
The big question.
When will Lucksout warn of a property crash and blame it on Labour and how Nationals policies will save the market.
Give it a month or so...
Over the last three years the average number of residential mortagee sales on Trademe for the whole of NZ is 20. Currently its sitting at 45. Also, some of the banks have been reported that they are stock pilling cash to pay for future bad debts. Does that mean we are likely to have some sort of clusterf**k in the next few months?
and add in to the equation that more than 400,000 residential buildings are at risk of flooding…
Can't do it while the banks are spruiking that the bottom is in.
Back to campaigning about how many cigarettes were stolen last week in Tawa. A good use of a $500K donation that's for sure, no wasted spending to see here...
Are house price’s in Auckland really worth 1.25 million on average. The weekly mortgage payment of $1900 with a 7% rate would put most of the population into poverty, the 20% down from highs is just the start this time next year another 20% should be expected following year could be the same if rates stay a this level. So many people on this site just don’t get it, the biggest housing price crash that New Zealand has seen is just starting.
Argh! I need my shades - all that red!
Thank goodness for Buller, wherever that is.
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