NZ housing market is still hot as hell
 

Well it's hot in Dunedin, anyway. Bumped into the guy who sold me my house this morning and he said everything is selling fast since Xmas. Probably faster than anytime last year.

He doesn't think this week's 0.25% interest rate increase will have much impact. Might6 make some people keener to buy and fix the rate now before it goes up again.

He reckons he is recognising the signs of a quick bump up in prices of about 10% - you know, when everything suddenly goes up a notch.

I reckon he wasn't talking bull as he knows my house isn't up for sale.

Yes I can see the market continuing like it is for another 12 months but may slow down toward end of year if further interest rate rises kick in.

One way of making a capital gain on a house is to buy a rural section and move an older house on to it then do up the house and landscape. Its a lot of work but good capital gain is possible.

Graham

Don, house opposite me sold for $450,000 2 years ago just sold for $920,000. Mind you it has been bought by a couple from NY as a holiday home. Its alright for some.

Cheers Kev.:D

Here in Tauranga (papamoa) the houses peaked in October, there wasnt a 'for sale' sign anywhere, now they are all over the place. people are starting to reduce there house prices because it is getting more competitve so now it has become a buyers market. house sections were being sold last year for $70,000 december those same sections were being sold for $170,000. is that greed or what.
People wanting to make money on buying now and selling now may have missed the boat.

HI ratliffe

Well that good new for any of us who want to move to those areas then :)

Must be a bit of a p#sser if you bought in December though.

How are you finding Tauranga, anything you do/dont like.

If we can get into NZ (wifes job permitting) we have narrowed it down to Tauranga or Whangarei. Do like the sound of Hawkes Bay, though I will have to look into it a bit more.

Jack

Hi Jack
We havent bought a house yet because of the very reason but we are actively looking for one at the right price. some people are starting to get desperate in some cases now to sell there investment that didnt go quite as planned where they are not going to make as much money as anticipated.
Tauranga is a great place where you have everything here.The Kaimai's 20 mins away, the beach is just-- over there! i say the beach because we love it although the surf is real small at the moment. i work 6 days a week and work much harder than in the u.k generally the pay is crap but mine is o.k. The cost od living is relative, there are things cheaper and dearer than the u.k.
there is a real problem in NZ with 'HOONS' (boy racers). kids dieing all over the place because of terrible driving. the driving here is incredibly terrible. if you were in the u.k you would be in fights all the time.
The earth quakes around Hawkes Bay put me of a bit, Wellington had a 3.2 last weekand it could be felt in Gisbourne.
We love it here in Tauranga.people are so much friendlier than the u.k
Until i visit other places we will stay here for some time
Gavin

Thanks for the reply Gavin.

Is it really that bad?

Is it in certain areas or all over the place?

Now I have visions of wacky races ;)

Jack

Hi Jack
the house price increase mainly at the mount and in papamoa. in Tauranga itself is pretty safe for the moment but later in the year i reackon it will go up a bit. we are looking in the town for house now as you get more for your money.
If you wanted to have a house a bit further out of town you will get a big house with loads of land for the same price. there is so much choice it all depends on what you want and how much you want to spend.
check out www.realenz.co.nz
Gavin

Hopefully there's a ripple effect spreading out from AKL and Dunedin has still got some mileage :p :p :p

The housing market has become quite silly.

My partner and I bought a house in November of last year(beachside Christchurch), the house across from us has just been listed for $100,000+ more than what we paid. While it's a nice house....it has one less bedroom than ours and it's across the street from the beach rather than adjacent to it(everything else being comparable).

Although I'd like to think my partner and I found a great deal....the % price appreciation we're seeing in one MONTH is equivalent to what one would expect from one YEAR.

When you consider this price appreciation in conjunction with average wage/housing affordability data and decrease in net immigration inflows......it doesn't look good for anyone paying top dollar at the moment....it's just not sustainable

Anyone considering buying a home in NZ....all I can suggest is the following:

play it safe....truly LEARN the market you're considering buying in...don't "shoot from the hip"

Consider renting for a year or two(that's what my partner and I did..and we haven't regretted looking at SEVERAL HUNDRED HOUSES) until things settle down.

I suspect prices will soften in many areas, particularly with older homes in less appealing areas later this year and into next.

I'm not a real estate professional, but having spent so much time in the last few years learning the New Zealand real estate market......I think it's best to be prudent at the moment.

The BNZ chief economist was in the paper this morning saying he saw NZ house prices rising another 5-10% early this year then falling back maybe 5% by the end of 2004. Plus he predicted big drops of 40% or so in the 'silly' places that have seen the biggest rises.

The Home Loan Report at www.asb.co.nz states that "the tightening cycle has started" - hard to say really if its going to have an immediate impact, as there is, at least in the minds of the public, a perception of a crazy market.

However, the interest rates (which affects domestic demand), plus the fact of the strong NZ dollar (which affects international demand) discouraging some immigration might have a collective impact.

CYKIWI
www.5horizonway.com