Spec­tre of neg­a­tive eq­uity

Marlborough Midweek - - OUT & ABOUT -

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

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