Residential property buyers in Auckland may find it more attractive to acquire homes, following a huge drop in median prices in the city, according to a Real Estate Institute (REINZ) report.
The report noted a 3.2 percent decline in home prices in October year over year, which is the most significant drop since December 2010. Part of the reason for the record-high fall involves apartment sales.
REINZ CEO Bindi Norwell said that a high number of sold apartments in the old Auckland City boundary brought down home prices, which fell to $850,000 in the Auckland region. That is the lowest price over the last 16 months, according to Norwell.
Aside from the city, Nelson home prices also dropped 6.8 percent to $447,500. Buyers should take note that this is the biggest decline in prices since April 2012. Elsewhere in the country, home prices rose in October by 3.3 percent year over year on a seasonally adjusted basis.
Homeowners in these areas that want to sell their properties to unlock a profit, while planning to buy homes in Auckland or Nelson, may increase their chances with some home improvements.
Upgrade your driveway with asphalt sealing provided by firms such as Auckland Asphalt Repairs, or getting some new paint on the walls are just some of the ways to increase the value of your house.
The New Zealand Reserve Bank’s loan-to-value lending restrictions also affected prices in Auckland and other areas, according to Norwell. It may change if the bank decides to lift these restrictions, which the REINZ anticipates to take place.
Norwell said that the restrictions were imposed to curb the market and now that prices have fallen, the REINZ urged a review of the limits for first-time buyers.
There is no guarantee that home prices in Auckland or other regions will continue to drop, so you need to ask for expert advice if you plan to buy properties in these areas.