Provisional housing market update: February 2014, Auckland
Provisional housing market update: February 2014, Auckland and Northland
3 March 2014
Provisional data from New Zealand’s largest real estate group Harcourts for the month of February shows there is continued pressure on the housing market in Auckland and Northland, with the average sales price sitting at $644,613 – up 13% on the same time last year.
Harcourts CEO Hayden Duncan says each month Harcourts’ data is repeatedly demonstrating that the LVR restrictions have not had the intended effect, with prices and written sales continuing to increase.
First home buyers and investors, who were initially dissuaded from entering the market because of the restrictions, have found their way around the need for a 20% deposit through the assistance of second tier lenders and family loans.
Harcourts sales consultants continue to report increased interest in properties on the outer edges of Auckland, as buyers look to make affordable purchases away from the heated central suburbs. Competition for these properties is also becoming fierce.
Rising immigration and falling unemployment have contributed to the overall confidence in the housing market and demand for property remains extremely high.
Interest rates are expected to rise from this month; however, this is unlikely to dampen a market fuelled by unprecedented high demand.
Full statistical data from Harcourts for the month of February will be available on 10 March.