New Zealand Housing Market Updates

anski · #1 (**permalink**) 5th March 2012, 04:39 AM

I will keep adding to this thread as new information comes to hand.

As a newcomer to New Zealand 11 years ago I found it all bewildering at first especially when making your biggest purchase. So many houses are marketed using terms such as PBN which means Price by Negotiation other terms used can be

BEO
Tender
MWP

for an explanation of Kiwi terminology when buying property in New Zealand, Kiwibank offers some good explanations on their website here is the link

Home loans in plain English - Kiwibank

Arming yourself with as much information about the property market will hopefully help you make wise decisions.

The following articles appeared in today edition of the New Zealand Herald & the entire articles can be read online.

Quote:

The recovery of the housing market is much wished for by those in the property industry, but is it really happening in the early stages of 2012? What are the signs? Our industry heads give Gill South their honest take on the sector, which is, on the whole, cautiously optimistic.

to read more follow the link below

QV: What the property industry says - Business - NZ Herald News

Have you ever been to a property auction? Some pointer for you.

Quote:

The lady is just three rows in front of the auctioneer - not the greatest place to start stretching with an innocent arm above the head when a deal is in the making.

Instantly she recoils as the man with the hammer jabs away pleasantly, trying to establish whether he's dealing with a live bid or a solo zumba display.

Find out what happened next: QV: Caution in the air at property auctions - Business - NZ Herald News

Quote:

The Property Report, published in today's Herald, shows average house prices since the 2007 market peak have climbed throughout Auckland city, but prices in other North Island cities are up to nearly 18 per cent below what they were four years ago.

And Auckland property: well if you want to buy in close proximity to the city it seems to be the winning choice for property owners.

Auckland property market out in front - Business - NZ Herald News

They had a separate Property Report in today's NZ Herald which charts the movements in prices since when property prices peaked in late 2007. The results are for 400 suburbs across the North Island.

If interested in following this further log onto QV to read the data in detail.

Another website for all manner of real estate values & suburb information is http://www.zoodle.co.nz/

anski · #2 (**permalink**) 8th March 2012, 08:46 AM

Just goes to show buyers will pay way over Council Valuation if they feel a property merits it.

Quote:

An architect-designed Grey Lynn house, scoffed at as odd by neighbours, has sold for $2.6 million - $900,000 more than its QV.

you can read more here

http://www.expatforum.com/expats/new...ote=1&p=731187

Song_Si · #3 (**permalink**) 9th March 2012, 02:29 AM

there are unfortunately some rogues in the NZ building industry

Quote:

Million dollar dream home misery
Friday Mar 9, 2012
Two Aucklanders are $1 million out of pocket after their dream holiday home in one of Northland's most exclusive streets was condemned and the people responsible declared bankrupt or liquidated.

Mike and Paula Scandle sought and were awarded damages through the courts but will not see a cent.

from Taranaki, the case of the fake Registered Master Builder:

Quote:

Taranaki home builder goes into liquidation
02/03/2012
Failed Taranaki housing company Dream Homes has been put into liquidation amidst revelations the company traded under a fake Registered Master Builders logo.
. . . more than 80 unsecured creditors were owed $823,000 and 12 secured creditors were owed $692,000.
more

and more on above

Quote:

Builders upset over false ads
06/03/2012
Registered Master Builders is considering taking failed Taranaki housing company Dream Homes to the Commerce Commission for "fraudulent" branding, the federation's chief executive says.

The Taranaki Daily News revealed last week that Dream Homes used a Registered Master Builders logo on its promotional material despite having had its application declined.

Because Dream Homes was not a Registered Master Builder, customers who had built homes with the company would not be secured against their investments.

A Master Build guarantee protects homeowners against loss of deposit, non-completion, defective workmanship, rot and structural defects or if the builder is unable or unwilling to put things right.

. . . New Plymouth man Mr Xiao, who did not want his first name published, was a Dream Homes customer fooled by the unauthorised branding. Mr Xiao said he signed a contract with Dream Homes in November 2010 to build a three storey, five-bedroom home in Hine St, worth more than $700,000. The contract required a 10 per cent deposit of $70,000 but the plans failed to get past the consenting stage because they did not meet building codes.
more

and flees the country:

Quote:

Less than a week after placing six companies into liquidation Dream Homes director Thomas Buckthought has fled to Australia
source

Song_Si · #4 (**permalink**) 1st June 2012, 12:48 AM

hard times for many NZ home-owners; I am surprised at these numbers, though as a percentage of the overall housing market it must be very low.

Quote:

More homeowners losing homes
31/05/2012

High numbers of "mum and dad" homeowners are losing family homes to mortgagee sales and the numbers are only getting worse.

Terralink International's latest figures show there were 2265 mortgagee sales during 2011.

This was below the record of 3024 in 2009 and 2434 in 2010, but numbers began to rise during the second half of 2011 and have remained high since.

***

"More Mum and Dad property owners are losing their homes. It's hard to claim things are getting better for ordinary Kiwis while this trend continues."

more

anski · #5 (**permalink**) 1st June 2012, 01:34 AM

Quote:

Originally Posted by Song_Si

hard times for many NZ home-owners; I am surprised at these numbers, though as a percentage of the overall housing market it must be very low.

Yes always sad when people loose their house but I don't think the picture is quite as grim. Newspapers like to print these stories to making startling headlines in order to sell papers.

Many of the sales were as a result of people over committing themselves in the first place & not being realistic about what they could comfortably afford.

I also blame banks for being so reckless in giving 0% -5% deposit loans to buy property.

When we first bought in the 1970's you could only borrow a limited amount based on repayments not exceeding 25% of 1 (not 2) take home salaries. You needed a hefty deposit and not a bad idea either, don't think many homes were repossessed in those days.

When we arrived here in 2001 we bought our house -no mortgage & over the next few years TV programs were all about buying property to refurbish & sell at a profit or building up a property portfolio by negative gearing. People like ourselves were made to feel stupid for not jumping on the bandwagon, but I wonder how many of these property portfolios ran into trouble when rents, rates, repairs, letting fees etc were not sufficient to repay the mortgages!

Many mortgagee sales are owners walking away from leaky home, it's often cheaper to walk away than repair them.
Once again banks have lowered their interest rates & offering housing loans on small deposits & property prices keep rising (at least in my area) but if prices drop or owners loose their jobs- what then?

Reading the comments following the newspaper article I note someone commented on high road tax in NZ obviously they have never owned a car in Australia!

anski · #6 (**permalink**) 1st June 2012, 01:41 AM

Following on from previous post just came across this article in Hawkes Bay newspaper
Poverty and mortgagee sales up as recession bites | Hawkes Bay Property | Real Estate News for Hawkes Bay, New Zealand

So all regions have been affected, but there is nothing about what the situation is now in 2012, I had read in our local rag that the numbers of mortgagee sales have dropped in 2012.

anski · #7 (**permalink**) 1st June 2012, 01:24 PM

The latest New Zealand Property report has just been published & just as I anticipated prices have increased in most parts including Auckland & Canterbury.

Hawkes Bay prices have declined.

If you wish to download & read the full report here is the link.

http://unconditional.co.nz/blog/nz-p...port-may-2012/

These results are based on actual sales figures as supplied by Real Estate Agents & not merely pulled out of the air.

Perhaps you would like to make comments about what the housing market is like in your part of New Zealand.

jimfisher · #8 (**permalink**) 28th July 2012, 01:49 AM

And... we have now reached the pinnacle of being able to advertise $1,000,000 as suitable for "1st Home Buyers"

anski · #9 (**permalink**) 28th July 2012, 04:49 AM

Quote:

Originally Posted by jimfisher

And... we have now reached the pinnacle of being able to advertise $1,000,000 as suitable for "1st Home Buyers"

Well there certainly is a lot of heat in the market lately, a house near me sold for $256,000 more than purchased a few months before after having only spent $40,000 on cosmetic improvements. CV was $610,000 sold for $905,000 3 bedroom ex state weatherboard.

Song_Si · #10 (**permalink**) 29th July 2012, 01:44 AM

experts and experts - who to believe here?
Can anything be blamed but buyer demand? People willing to mortgage themselves for the rest of their lives (and beyond I think).

Quote:

Auckland house prices could double by 2022 - experts
5:30 AM Sunday Jul 29, 2012

How high could house prices go, particularly in Auckland?

Some experts are predicting the revival in the market may not be shortlived, with two of the most bullish saying Auckland prices could hit a median of $1 million within the next 10 years.

The prediction by Olly Newland and Auckland Property Investors Association president David Whitburn, that house prices will double by 2022, comes as Auckland hits a record median sales price of $500,000.

House prices last doubled between 1996 and 2006.

****

But Realestate.co.nz chief executive Alistair Helm cautioned against generalisations such as those Whitburn and Newland were making.

He said though prices doubled up to 2006, inflation was about 4 per cent. With inflation currently under 2 per cent, to reach 8 per cent growth each year would be more difficult.

more