Nationwide residential property values for June showed an 8.1% increase from last year, according to QV. Interestingly, however, despite value growth, the volume of sales is down.
There are a number of factors behind this anomaly and some key implications for those looking to buy or sell property on Auckland's North Shore.
Plateauing property values in Auckland
Property values in Auckland remain steady and the current average across the urban region sits around $1 million, according to QV. Over the last year, residential values in the Auckland region have increased 7.2%.
Over the last year, residential values in the Auckland region have increased 7.2%.
In some parts of Auckland, including fringe areas like Rodney, Papakura and Franklin, property values are on the rise, up 2.2% over the last three months, but for the most part things remain steady.
Values up, volumes down
Regardless of a few flat months, one would still think that the volume of sales would be rising alongside values. That's not the case however, and despite the fact that values are up over the last year, the volume of sales is down by 30%, according to QV.
What's behind this? CoreLogic Buyer classification data points to tightened lending regulations, due to the fact that while sales to cash buyers have remained steady, those to buyers requiring a mortgage have dropped.
"Lenders are asking a lot more questions than they used to, and are taking longer to process loans and get approvals back to customers," explains QV Auckland homevalue manager James Steele.
Sales to investors, however, are still going strong, indicating again, that finance – not property market woes – is the culprit.
What it all means for North Shore buyers and sellers
Selling is very possible in a plateaued market, especially for those lucky enough to own property in reputable areas including Auckland's North Shore. If you aren't in a rush, however, these latest indices make it clear that there's no harm in waiting for this levelled out period to rise again inevitably.
If you're thinking of selling down the line, get the right agent on board now. At Ray White Takapuna, our experienced team understands the North Shore property market, meaning we not only can help you decide when to sell and for how much, but can help you prepare it for a profitable sale in the meantime.
Plateaued values hasn't necessarily meant reduced sale prices in most areas, but the trend has eliminated some of the pressure on buyers to snatch up a home extremely quickly as sellers are more willing to wait or negotiate – both of which are advantageous to house hunters.
For buyers, the bigger concern won't necessarily be getting the right price, but securing the loan, due to tightened restrictions. At Ray White Takapuna, we are lucky enough to be supported by LoanMarket and our own Craig Bonnington will be able to find you the best possible home loan price; tightened restrictions doesn't mean you should settle for a riskier loan in your rush to purchase property.
Whether you're looking to buy or sell property in Auckland's North Shore, working with experienced real estate agents is essential. The team at Ray White Takapuna follows the local market meticulously, and we aren't worried by transient trends in the property market. We can help sellers know the right time to enter the market, and buyers negotiate a fair price for their home or investment.