BARFOOT & THOMPSON
Confidence Returns To Auckland Housing Market As It Enters A New Growth Cycle
The Auckland housing market started the new year with strong sales numbers and rising prices. ”It was an extremely confident start to the year,” said Peter Thompson, Managing Director of Barfoot & Thompson. “In terms of sale numbers, we sold our highest number of properties in a January in four years. The average price and median prices were up on those for December last year, and new listings were up over the 1,000 mark. “Buyers were active across all price segments and were prepared to pay near record prices.
JULY UPDATE…2019 Winter Auckland Property update.
The Auckland residential property market underwent a modest but definite shift in July with property sales prices falling and sales numbers rising.
FEB 2020 – Economists at the country’s biggest bank are warning that “a significant economic headwind” could be in the pipeline as the growth in bank deposits slows at a time of strong credit demand. And they warn that bank lending may be necessarily ‘reined in’. Recent Reserve Bank data showed that household bank deposits grew at the slowest rate last year for nine years, while housing loan growth hit its highest level since mid-2017. The banks refer to such a divergence between credit demand and deposit growth as a ‘funding gap’. In their Weekly Focus publication, ANZ NZ’s economists say the slowdown in deposit growth “matters”. “New Zealand banks need deposits to fund their lending, so the recent widening in the bank ‘funding gap’ is something we are watching closely.
ANZ PROPERTY UPDATE – NZ WIDE (jULY 2019)
This month we take a closer look at housing market performance across different regions in New Zealand. Weakness in the Auckland and Canterbury markets have weighed on the nationwide picture, with these regions comprising 42% of house sales combined. But a number of other regions have experienced strong price gains recently. Based on a number of metrics, we identify Gisborne, Manawatu-Whanganui, Tasman-Nelson-Marlborough and Otago as hotspots, while exceptional heat is being seen in Southland and Hawke’s Bay. In addition, Bay of Plenty, Waikato and Wellington markets are also running hot, just not as hot as they have been. Conditions can change quickly and the outlook is uncertain, but all else equal, strong demand in these markets appears conducive to further regional price increases. This delayed cycle relative to Auckland is not unusual for the New Zealand housing market. On the whole, we expect that the nationwide market will remain contained. But regional divergence is expected, with hotspots expected to continue to outperform while headwinds blow strongest in Auckland and Canterbury.
(Source and Copyright- ANZ)