Sell­ers bank $75k

House prices will con­tinue to rise mod­er­ately

Wanganui Chronicle - - Front Page - By Staff Re­porter

Whanganui home own­ers who have sold up this year have pock­eted an av­er­age profit of about $75,000 each.

Fig­ures re­vealed by prop­erty in­for­ma­tion com­pany CoreLogic s how Whanganui prop­erty own­ers pock­eted $21 mil­lion in gross profit from sales in the first quar­ter of the year.

CoreLogic se­nior re­search an­a­lyst Kelvin Davidson said its “Pain and Gain” re­port showed Whanganui prop­erty mar­ket was gen­er­ally in good shape, with losses from sales at his­tor­i­cally low lev­els.

“We’d anti c i pate prop­erty val­ues con­tin­u­ing to rise mod­estly over the rest of the year, given that mi­gra­tion is hold­ing up, in­vestors are stay­ing in the mar­ket and in­ter­est rate rises re­main a fair way away,” Davidson said. “There’s a bit of ev­i­dence of un­cer­tainty for in- vestors and in the apart­ment sec­tor but it’s min­i­mal. This is con­sis­tent with the con­tin­ued gains in over­all prop­erty prices in most parts of the coun­try.”

He said that pro­vided an owner had held a prop­erty for “a nor­mal amount of time”, they would see a gain re­gard­less of where t hei r prop­erty was lo­cated. “It’s likely most peo­ple will hold a house for three to four years at least. So even if prices stay flat for the next six to 12 months, they’ve had those pre­vi­ous three to four years to build up their gains and when a sale is made, there’ll prob­a­bly be some sort of profit.”

The re­port showed to­tal losses from re­sales na­tion­ally dropped from $36.6m to $27.2m, in­di­cat­ing peo­ple were not con­cerned enough about the mar­ket out­look to push through quick s al es f or a l ower pri c e. To­mor­row’s Chron­i­cle will fea­ture an in-depth look at what is hap­pen­ing to Whanganui’s hous­ing mar­ket and how it is af­fect­ing peo­ple dif­fer­ently.

Ed­i­to­rial: see P8

Whanganui prop­erty own­ers have pock­eted $21 mil­lion from sales this year.

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