Spectre of negative equity
Barfoot and Thompson’s July sales reportshowed the average sale price for an Auckland Eastern suburbs home was $1.117 million in July, compared to $1.193m in July last year.
In the North Shore the average price was down from $1.3m to $1.06m.
In South Auckland it was down from $824,069 to $708,069.
What exactly this all means is up for debate. Has the crash finally started? Is China’s crackdown on money leaving the People’s Republic causing the crunch?
Are anti-money laundering laws finally working?
Have the Reserve Bank’s high deposit-for-investor rules knocked them out of the game?
It certainly isn’t because we’re building enough homes for the expanding Auckland.
Whatever the reasons, some people who bought recently now own homes worth less than they paid for them.
A tragic few may even be in