NZ 1st homebuyers are ScReWeD...

[Dr_Who]

The present market is an unrealistic one to decide whether prices are moving and which way.
My contacts suggest that the median price is affected by the type of property which is selling. Hopefully there will be some stabilisation within a year but the important thing is that ability to save will be important in a wavy market and now there is no hurry to buy (or to sell for that matter)
It may all be decided for us if the overseas investors slow down the available cash at cheap rates.
Who knows?

101 economics

Wait till all those newly printed money with cheap interest rate flood the retail market. History repeats itself. Oh wait, they have already started flowing in. Auckland property market is heating up. Those that still say Auckland market is down are on fantasy island waiting for Tattoo to ring the bell.

[fungus pudding]

101 economics

Wait till all those newly printed money with cheap interest rate flood the retail market. History repeats itself. Oh wait, they have already started flowing in. Auckland property market is heating up. Those that still say Auckland market is down are on fantasy island waiting for Tattoo to ring the bell.

Continuing 101 economics .............outgoings for a roof over your swede are governed by affordability.

[devito]

Wait till the Government bring in the new "land tax" and change a few of the depreciation rules for investors.
They will sell in droves and we will then see where the "norm" is.

[George]

House next door in Henderson, good view, great location (some may
think that is debatable), cv of 280k, on sale for 296k.
Not one person to 6 open homes over last 3 weekends.
With a house up the road only having one offer of 230k compared
to cv of 290 it seems there are no buyers around compared to some
of the more up market suburbs.

[Dr_Who]

Hey George, try going to the open homes out in Ponsonby, Grey Lynn, Mission Bay, Orakei, Mt Albert. It tells a very different story.

[Jay]

Hey George, try going to the open homes out in Ponsonby, Grey Lynn, Mission Bay, Orakei, Mt Albert. It tells a very different story.

Properties around my way - close to one of the above have been selling inside 30 days and above GV.

All auctions with more than 2 bidders

yes these are in the $800K + category

(however I don't think I would get that for our place and i'm not shifting anyway so it is a waste if time thinking about it )

[STRAT]

House next door in Henderson, good view, great location (some may
think that is debatable), cv of 280k, on sale for 296k.
Not one person to 6 open homes over last 3 weekends.
With a house up the road only having one offer of 230k compared
to cv of 290 it seems there are no buyers around compared to some
of the more up market suburbs.

Hi George
A turn in the Market will always start in the more prosperous areas.

Looking for signs of life in the property market? Inner suburbs are where we should be looking for new spring shoots.Following that look for more activity in the domestic building industry in those areas. It then moves out like ripples in a pond after a stone has been thrown.
Out west Ranui is the last to benefit and when it does its a sign the boom is coming to an end.

North Shore is showing real signs of life now too. From one Westie to another you can take renewed activity in Avondale as a early to middle sign of things to come.

Domestic Market
Anyone looking for best entry in the upper price ranges should have been in around when the Share Market turned ( March ) or shortly after. No surprises there. Anyone looking in the mid price range should be getting their A into G and doing some serious hunting. Bottom end should be doing research and keeping their eye on the ball IMO

[The GrandMaster]

Hey George, try going to the open homes out in Ponsonby, Grey Lynn, Mission Bay, Orakei, Mt Albert. It tells a very different story.

Really? I live in Ponsonby. Place across from us has been on the market for what must be well over 3 months now...

[Dr_Who]

Really? I live in Ponsonby. Place across from us has been on the market for what must be well over 3 months now...

He must asking way too much for it and are unrealistic.

I have been buying and looking at property for the last 6-12 months, this includes the Ponsonby and Grey Lynn area. So I do know the area well. All the good properties in that area that are realistically price will get snapped up quickly.

Dreamers should go live on Fantasy Island.

[minimoke]

Two year anniversary Shrewdy, so time to review your original post on buying a first home.

Your original figure of $330k ...

So now to deposit rates – you sure could have looked at buying a house on pretty much zero deposit – but not any more. You’ll now be looking at a 20% deposit.....

And interest rates. The RBNZ had a floating rate in Jan 07 of 9.5% and two year fixed was 8.2%. We know you are against fixed rates – but you would have seen floating rates increase month after month to an eventual high of 10.3% in Sept 08. Some of us who like fixed rates would have sat back on 8.2% and watched you pay 2% over the odds following your view. ...

Three year anniversary shrewdy.

Remember you were looking at a $330k median property and a 9.5% floating rate back then and you didn't think it was a good time to buy.

REINZ figures out today show a median of $360,000 - the highest property values have ever been. Thats a 9% increase in value from your original question - despite all the doom and gloom and the "market will drop by 30%" and "we are due a housing fall...."

We still can't get 100% mortgages but you could get a 90% one now - but banks are probably stil going to prefer a 20% deposit.

Interst rates are at around 5.79% for a floating rate now or 7.20% for a two year fixed.

During the last few years we've seen dozens of finance companies go under and $b's in investor funds lost. A first home buyer would be in deep poo if they had parked their deposit and savings there over the last few years.

As for the equity market, not too many IPO's; a few listed companies no longer around and the NZX and back in Jan 07 teh NZX All index was at 4106 gross (1094 capital index or a market cap of $41,370m) wheras for December 09 it was at 3247 (773 cap index and market cap of $33,431m). Again if a home buyer hopeful had put their money into equities, hoping for a an imporovement in their housing postion I think they will be a bit disappointed.

So in summary we've seen property go up, deposits go down, equities go down. Perhaps back in Jan 07 first home buyers weren't screwed after all.