Prices drop in Auckland
The latest QV House Price Index data shows values rose just 1 per cent on average across the Auckland region in the year to February, and while some areas are seeing values rising or holding, others are seeing values drop back.
While prices remain very high and out of reach for many, there are a number of suburbs where values have dropped back considerably, making them more affordable. There are now more homes for sale under the $500,000 range than there have been for some time.
There’s also been a surge of new listings on the market over the past few weeks, meaning there is more choice for buyers.
This coupled with the slight easing in LVR restrictions for home buyers and investors along with competitively low interest rates means that it’s an easier time to buy than it has been for some time.
The latest qv.co.nz quarterly Property Report (March 5) shows that out of the 169 suburbs measured, 58, or a third of them, saw values drop in the year to December 2017.
For Auckland central, nine of the 50 suburbs measured saw values drop in the year to December. The greatest decrease was in Waterview, home of the new motorway tunnel. The median value there dropped 4.7 per cent, or $45,000, from $938,150 to $893,150. Values rose the most in Wai O Taiki Bay, up 17 per cent, or $197,100, from a median value of $1,156,400 to $1,353,500 over the same period.
For the North Shore, values dropped in five out of 39 suburbs and the greatest decrease was in Schnapper Rock where the average value dropped 3.2 per cent from $1,420,650 to $1,366,200. Campbells Bay had the greatest rise in value, up 6.7 per cent in the year to December to a median value just shy of $2 million at $1,986,400.
In Waitakere, 11 of the 17 suburbs measured saw values drop during 2017. In Te Atatu South, values decreased the most, by 3.6 per cent, or $30,100, from a median value of $832,100 to $802,200. Values were up the most in Glendene and Green Bay, by 1.4 per cent .
In Manukau, values dropped in 26 out of the 39 suburbs measured. The greatest drops were in Dannemora, down 5.3 per cent, or $78,000, from a median value of 1,477,900 to $1,399,500 and in Otara, down 6.7 per cent, or $39,350, from a median value of $589,950 to $550,600
In Papakura and Franklin, five out of the 11 suburbs measured saw values drop during
2017. The greatest decrease was in Rosehill where the median value dropped 5.2 per cent, or $35,150, from $681,150 to $646,000.
In Rodney, just two out of the 13 suburbs measured saw a drop in value with values decreasing the most in Manly, down slightly by
0.6 per cent, or $5000, from $903,300 to $898,000.
In general with rents at all-time highs, interest rates still at record lows and prices down in many areas, if you have the deposit, I would say now is a good time to negotiate as a buyer and to get a better deal than it would have been when the market was more buoyant.