A couple of the major Banks are predicting house prices to increase by up to 7 per cent next year with the property market due to “spring back to life”.
This is a welcomed announcement as it comes on the back of a fairly quiet winter – so signs are emerging of a brighter spring.
This prediction follows the latest data from the Real Estate Institute showing prices picking up after what’s been a sluggish period.
It’s likely that the combination of the cancellation of CGT, combined with falling mortgage rates, will help accelerate the market.
The area’s most likely to notice the upturn will be Auckland and Christchurch, both areas having suffered weak markets.
The Real Estate Institute’s House Price Index, measuring the changing value of property, determined an increase of 3.6 per cent, to a record high in the year to September.
Median house prices across New Zealand have increased by 7.3 per cent, to a record high of $597,000, over the year earlier.
Median house prices in Auckland rose 0.5 per cent to $848,000 with sales volumes up nearly 3.6 per cent in the region over the year before.
The regions with the biggest increase in median prices included Manawatū-Whanganui, Southland, Taranaki and Hawke’s Bay. Whereas regions with the highest volume of sales growth included Tasman, Otago and West Coast. Those with the biggest price drops were West Coast, Northland and Nelson.
Upturn in House Sales…
Although the national volume of sales was flat, REINZ confirmed the highest number of properties sold in a September month for three years, which indicates the usual spring uplift and that more confidence is starting to creep back into the market.
Mortgage rate cuts that began in autumn have also provided a welcomed boost to real estate activity nationally.
New listings are rising as sellers become more encouraged, assisting the eagerly anticipated housing upswing across the market.
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