Time to haggle for houses as property market flattens
Home buyers are back to cutting deals rather than battling for a house at auction as the market flattens after years of record growth.
QV figures show that while city home values are up 16.7 per cent year-on-year, they have dropped 0.8 per cent over the past three months.
QV spokesman Stephen Hare said sales by negotiation have been popular.
‘‘Sales by negotiation are becoming the favoured way to sell in the current market rather than auctions, which were more popular last year,’’ he said.
‘‘Properties in the $400,000 to $500,000 range have become a rarity and are attracting strong demand from first home buyers who are snapping them up very quickly.’’
The First Home Buyers Club aims to get would-be buyers ready through free planning sessions, making its money on commissions on mortgages and insurance.
Commercial and media manager Lesley Harris said it’s too early to call the shift a trend.
‘‘I think there’s a number of reasons people don’t want to go to auction,’’ she said. ‘‘It’s symptomatic, possibly of a slightly weaker market - but I’m hesitant to label it that because it could be the time of the year.’’
Nationwide residential property values for February increased 13.5 per cent on last year.