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Mortgage calculator might now surprise many Auckland renters

Mortgage calculator might now surprise many Auckland renters

“Now’s the time for many Auckland renters to run the numbers on a mortgage calculator. Many could be pleasantly surprised when comparing their weekly rent commitment to mortgage repayments, and realise it may be the best time for them to buy in recent years if they can come up with a deposit,” says Geoff Barnett, National Manager of Century 21 New Zealand.

His comments follow reports that overall residential rents have gone up this year in Auckland, while house prices have plateaued, and interest rates remain low.

Mr Barnett says the latest QV data is a fair reflection of what Century 21 is experiencing – with Auckland prices levelling out while other parts of the North Island have experienced some good price growth this year.

“This coming summer won’t be sizzling, but it will hold up relatively well with housing demand still outstripping supply and interest rates set to remain low in the foreseeable future. More houses are coming on the market too, meaning more choice for buyers.”

He says Century 21’s new listings for October were up over 20% nationwide on the same time last year, and up over 40% on the previous month of September.

“The good news is our growth in listings has been driven by new stock coming onto the market, not languishing unsold properties. What’s more the industry’s lengthening sales times of the past year have now stabilised for us.

“Things are settling down to a more normalised market where vendors with realistic expectations will achieve good prices while buyers won’t be forced to rush their purchases. In one word, summer is set to be ‘steady’.”
Mr Barnett believes any ban on foreign ownership won’t have an overly negative impact on the residential housing market as past data shows only about three percent of buyers had overseas tax residency. Auckland, he says, is also cushioned by its strong and ongoing population growth.
“The New Zealand real estate market is entering a consolidation period. Plain and simple. However, some seem determined to interpret every available statistic with alarm. In reality, all we’re witnessing now is the return to a more normalised market showing more realism and genuine sustainability than the crazy days of a couple of years back.

“Across the Century 21 group, we’re starting to see an increase in market activity. Across the industry we’ll also see increasing activity over the summer months as per normal.

“There might not be too many records broken this summer, but rest assured there’ll still be plenty of willing buyers and sellers negotiating fair prices that both parties are happy with,” says Mr Barnett.
Century 21 is a proud sponsor of the Phoenix Football Club.

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