Market Update August 2023
After a while, I was so busy helping my clients buy or sell the property (including buying for myself), let’s review the property market. To summarize market change and price reduction now convert slightly to a price increase (about a 0.5% increase per month in part of Auckland). If you were waiting to catch the downturn you missed it but the good news is still there is time to find property at a reasonable price (check deal of the month). Here is some key factors that contribute to price increase:
- Interest rates are likely to have reached their peaks and inflation starts reducing
- First-home buyers’ confidence improved due to income are increasing
- Investor confidence improved due to rent increase (Need to consider rent increase due to net migration and flooding damage)
- Residential construction reduce and fewer people list their home
- Open homes are busier than 3 months ago
- Auction clearance rates are improving to more than 60%
- More competition to limited property in the market and price increasing
While usually election years bring slowness to the property market as everyone’s “wait and see” mode kicks in to check out the new government and its policies but this year buyers return to the market earlier to get a bargain. What about you?
Deal of the month
This is the best deal I came across recently, 135 Foresthill Road, Northshore:
- 4 bedrooms, sunny, brick and tile
- Double Westlake zone (school)
- CV $2.235m sold in auction $1.23m ($1m under CV) (immediate $500K gain)
- With 100K in renovation $300K equity gain.
- 832m urban flat land for future development potential ($1m+ future gain)
Due to the limited number of people I can coach in parallel, now there is a waiting list. If you are planning to buy right property register your interest now!