With only a few months left until the end of the year, David Rainbow of Bayleys Remuera expects that the next couple of months leading up to Christmas will be an active time in the property market, in line with tradition.
“The market is still positive, providing people listen to the market. However, there is no set formula and a house is only worth what a willing buyer is prepared to offer and a seller accept on that particular day,” said David. Afterall, ‘the market is the market’.
Remuera has traditionally been a stable real estate market. Those who own property in Remuera may be holding on to it currently due to the low interest rates and market steadiness. If buying and selling in this current market environment, you can know what to expect.
It is a somewhat unpredictable time for the Auckland property market generally, with a range of external factors shaping activity and these mostly relate to the current global scene and a weakness in business confidence.
“People aren’t buying in the same way they used to, but to get onto the property ladder, now is a really good time to do so because of historically low mortgage interest rates” says David. The gap has narrowed between lower and higher priced properties also.
David has been successfully working in real estate since 1984 and continues to do so after 34 years. He brings to the business a mix of knowledge, experience and common sense.
“For those looking to sell and downsize, sometimes it is best to accept the market as it is. If you have owned property in an area like Remuera or similar for a long time, what owners have gone through, in terms of price rises in the last 10 years or so has been the biggest jump, almost ever.”
Real estate values and activity in Auckland have been slowing down in the last two to three years. Market Property Research Manager at Bayleys, Ian Little, says “when analysed on a quarterly basis, median values have declined by less than 2.5% from the peak reached in late 2016, or less than 1% per annum over the same period.
“Looking ahead over the next 6-12 months, with low interest rates, migration, high employment, positive economic growth and the continuing housing shortage putting upward pressure on prices – these main drivers are likely to remain in play, meaning prices will probably move sideways and in the short term stabilise.
“With the current domestic situation there is no prospect for upward movement in interest rates, indeed the opposite appears to be true, the Official Cash Rate is forecast to fall over the next 12 months, holding mortgage rates at low levels.”
This steadiness is encouraging to both buyers and sellers who are looking to plan ahead.