Sellers bank $75k
House prices will continue to rise moderately
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.