Property prices in Auckland are continuing to rise despite lending restrictions and higher interest rates pushing up the cost of borrowing.
Figures released yesterday by QV show the Auckland market increased 12.3 per cent year on year and values are up 31.4 per cent since 2007 peak.
Read more about it here.
Massey University last week released a study showing housing affordability had deteriorated by 9.1 per cent in Auckland in they year to May 31.
The numbers seem stacked against buyers so should people buy a house in the current market?
NZIER principal economist Shamubeel Eaqub says it depends on why you are trying to buy a house.
“If you are already in the market it doesn’t matter what the property cycle is doing.”
Eaqub says for those wanting to down size it’s a great time to sell up.
Property consultant Olly Newland says renting is cheaper than owning at the moment but renting has its own pitfalls.
“I agree that renting is cheaper than owning at the moment but you are always at the mercy of the landlord.”
Massey University professor Bob Hargreaves says it depends on a lot of factors.
“Buying property is an individual thing. If people are cashed up and ready to go then that is usually when they buy.”
Hargreaves says in the long run people that buy are usually better off than people that rent but he says it can also depend on how long a person intends to own a property.
Auckland Property Investors Association president Andrew Bruce says newbie investors and first home buyers tend to jump in when they have got their deposit sorted – they don’t tend to time the market.
and just 2 months after the article “Is now a good time to buy property in Auckland?” was published it seems that Auckland house sale volumes fell 7.5 per cent last month and the average selling price fell by 1.1 per cent to $711,768, says real estate firm Barfoot & Thompson.
Peter Thompson, managing director, has just announced results from last month and blamed the election which he said had put the market into a wait and see mode.
“With new listings for the month at 1129 – a decline of 19.1 per cent on those for July – August was a quiet month in terms of activity,” he said in the article “Auckland house prices slump in August“.