Extract from "House prices on way uo" suggests jury is still out regarding property a bit of positive/negative. This mornings large crossing of almost 10M @ $5.30 appears someone has heaps to sell and could destroy a bit more capital for newly SUM holders?
"However, other indicators suggest the market remains somewhat sluggish. The number of houses sold across the country fell 7.8 percent to 7,263 compared with sales in May last year with Auckland sales down 21.8 percent to 2,462.
And the number of days it took to sell a house in May stretched by three days to 41 nationally and by five days to 45 in Auckland compared with May last year."
Most recent data (as per picture above) wellington up 5.4%
The HPI has Wellington City up a massive 6% on May last year which is pretty fantastic. What one defines as ‘recent’ varies but the past 3 months don’t look too flash for Wellington City (down -3.2%) which is nothing too concerning given the cities recent increases.
It’s nice to see Auckland City’s HPI recover of last months drop and rebound up 1% but still down -3.7% on May 2018. There really is no point using the median when the HPI is available and as shown by the charts provided by REINZ it is a much less volatile metric.
The HPI has Wellington City up a massive 6% on May last year which is pretty fantastic. What one defines as ‘recent’ varies but the past 3 months don’t look too flash for Wellington City (down -3.2%) which is nothing too concerning given the cities recent increases.
Property isn't like shares where we can look at quarterly results and see subsequent swings. Property is a long term thing - a year on year variance is the shortest time frame we should worry about. Anything less is subject to the vagaries of an illiquid market and one or two properties in that market disproportionatly affecting the median or average.
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