Originally Posted by
Roger
Friend of ours tried auctioning their modest West Auckland home on Saturday 31st October. A classic basic 3 bedroom property at the affordable end of the market for Auckland, (reserve was under $600K).
After spending several thousand dollars on advertising and promotion no buyers showed up to the auction at 2.00 p.m.
I spoke with the general manager N.Z. of one of the major real estate franchises last week. Market's turned completely on its head Rodge was what he told me. Its now a buyers market.
I spoke with another client / real estate agent the week before and got the same story.
Thing is, our friend now can't move into the retirement village she wanted too and was counting on a sale to eliminate her remaining mortgage and have a comfortable retirement. She's so broke, (can't really afford her remaining $150k mortgage mortgage), that she put the $4K marketing and promotion costs on her credit card and now she's really snookered. Just one example, granted, but valuable feedback from others at the coal face that should know.
Hmmm...If people can't sell their homes they can't move into the retirement villages can they ?...and then if that happens en masse stocks priced for perfection in this sector on a PE of circa 30 might find their operating environment isn't perfect anymore. After many years of increases in the Auckland market it won't surprise me if there's a decent sized correction.
BUT retirement sector stocks are immune to a housing downturn supposedly so you guys will be alright...too early for a Tui ?