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This truly is a really strange market…
After an exuberantly irrational August and September, we are currently experiencing a lull. The change in the LVR rules from 1 October now means a 30% deposit is required and perhaps this new rule is intimidating people…
We are now noticing a lot of buyers looking but not buying as well as a decent amount of vendors who are unsure of whether to put their houses on the market or not. Meanwhile, it seems that investor buyers are in a ‘wait and see’ mode.
However, there is still very much a shortage of property, especially in the bottom end of market. Meanwhile, interest rates continue to remain low, and could drop further. As such, the high prices are likely to hold and the bottom end is likely to increase over the Christmas period, fuelled by a lack of properties in that market.
We have seen a lot of rural properties being purchased for landbanking and this brings its own issues – renting out rural properties with issues like septic tanks, livestock, swimming pools. These properties require savvy tenants who have a rural background that enable them to handle the property comfortably.
On the rental side of things, there are very few houses for rent. However, we have good tenants wanting to move into the area.
As very few listings are coming through, sales or rentals, it seems very likely that there will be an increase in price soon, both locally and all around the wider parts of Auckland.
Speaking of local, did you know that ‘Massey Means Business’ organised a bus tour for local business people? The tour showcased the amazing growth areas in and around Westgate – taking in NorthWest, the new town, the Hobsonville Corridor with the light industrial area opening up near the Hobsonville School, the new Hobsonville Shopping area, Hobsonville Point , the new Whenuapai Special Housing Area, and Red Hills. All in all, we are part of an amazing growth area in West Auckland!
What are you predictions for the housing/rental market? Are you looking for good tenants? Let’s have a chat; give us a ring (09) 832 0832.