In Auckland, the number of properties sold in July increased by 30.3% year-on-year (from 1,992 to 2,596) – the highest for the month of July in 5 years.
First home buyer activity remains strong with many families wanting to purchase while interest rates are low.
A similar number of investors are in the market, but many are waiting for later in the year when values could drop as the ‘mortgage holidays’ come to an end.
Auckland’s median house prices increased by 11.5% to $920,000 up from $825,000 at the same time last year, but down 0.1% from June this year.
Open homes are very busy for properties across the board with 25-60 groups attending first weekend open homes in some circumstances.
Auckland saw the median number of days to sell a property decrease by 9 days from 44 to 35 year-on-year, the lowest for the month of July in 4 years.
Buyers are genuinely looking to purchase or buy a second property while interest rates are low.
There has been a strong clearance rate of approximately 80% at auctions.
Some offshore owners are looking to sell as they don’t know when they can return to New Zealand.
Finance approvals are challenging with several buyers having to wait up to 3 weeks to get an update from their bank.
The market should continue to be busy in the lead up to the election.
Auckland had the second highest percentage of auctions in New Zealand with 26.8% of properties (697 properties) sold under the hammer up from 13.6% at the same time last year (270 properties).
This was the highest percentage of auctions Auckland has seen for the month of July in 4 years.
SOURCE: The Real Estate Institute of New Zealand (REINZ)
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.