LoganT

Build it and they will come...

Batty

Nobody is punting on rising prices - if the market gets moving it will get moving at the 'market' price. As soon as people get it into their heads that they don't have to make the profit they needed even a year ago to buy what they want then it'll start moving again.

Batty

Exactly my point The cost of change is the same no matter what the market is doing.

southerner

Or it might even be cheaper now, with lower real estate fees.

Dave1892

The person mentioned in the earlier thread who has bought two investment properties is punting on the market.

whitesand

Batty, do you mean when people come out of denial and realise that they ain't gonna get what they were hoping for. And, there is no 'market price' - only what someone is willing and able to pay for a house. And, this will change as the recession bites and bites.

It's also a myth that there will be a greater demand for rentals due to less people buying. During a recession folks become more resourceful, think more creatively, and learn that less is more. Therefore, they think of alternatives to paying a large rent and might go for smaller places, double up, or go back to stay with the parents.

sparkie down under

I heard that PGGWrightinson's in Palmy shut it's doors last week and made 5 people redundant as they weren't selling enough. Now what, if true, does that say?

Batty

Yes, that's exactly what I mean but you can't blame people for not wanting to cave in too quickly.

When I talk about the market I don't particularly mean the price - it's the market place we need to get moving.

jmh

Interesting piece about the rise in mortgage sales:

http://www.nzherald.co.nz/nz/news/ar...ectid=10564171

Predicted unemployment rate of 7%

strawbie

People have only ever paid for a property what they think its worth! Estate agents offer a guide, which has been greatly overestimated in the past few yrs. we have ours for sale now and also had it for sale a couple of yrs ago in the boom! we eventually had 2 people bidding on it and the 'winning' bidder pulled out 10wks into the sale-prob realised he'd bid too much!! When you look at property for sale now in the uk it doesnt seem vastly reduced in price....yet! there are just no buyers, its like a ghost town!

whitesand

No, they did pay more than they thought the property was worth. But, they also believed that when it came to their time to sell it, they could make an even greater profit! And, crazy as it may seen, they kidded themselves into believing that this would go on and on. And, even when there were warnings that things could not last, they were ignored because folks tend to believe what they wish to happen, not what will happen. Really, it was all about greed as against common sense. And the sad thing is that folks thought this was an okay way to live.

NZBee

I think it is difficult to predict what is going to happen in the New Zealand market, as I dont think we have yet felt the full impact of what has happened with the global economy. One thing is for sure, if I was an estate agent, I would certainly be saying that the fall of house prices has come to a halt, as to encourage people to buy!
But with unemployment on the increase, and it becoming increasingly difficult to get loans, I really dont think we have seen the end of it.
New Zealand has traditionally been obsessed with owning their own homes, and thus getting into debt...as some experts are saying, I think people should focus on saving and being smart with their money right now, rather than get mortagages that are unmanagable.
People are beginning to see that renting for the foreseeable future isnt a bad option after all....