Factors of the future: how the Auckland Market will remain strong
When looking at the Australian market and seeing many changes come to property from the government it can stand to reason that some people could be nervous about the markets strength and possibly hesitant to enter the market as either an investor or a first time buyer.
But experts are seeing even with these changes and fears that the local market had in fact remained rather strong and as a result form different factors across the city and in various sectors of the market, the outlook is positive.
Let’s start with some direct reports from the people who work directly in the market, a recent report from Barfoot and Thomson has revealed that prices have remained steady in May with a slight improvement on the previous month. Barfoot’s average selling price in May was $928,992, slightly higher than $928,330 in April, the median selling price was $850,000 in May, up $20,000 from April’s median of $830,000.
The Auckland market has remained steady in the past five years, it has had its growth and may may be worried that no major growth is a bad sign, but many disagree, a steady. Arlen is much more healthy than one that keeps radically increasing, and with every year there are the predictable outsider effects such as winter, months and government policy that will always have their effect on the market.
For example, Barfoot & Thompson Managing Director Peter Thompson said that The drop in sales volumes isn’t surprising or uncommon as dips are expected in the winter months where the market tends to cool off. Thompson also commented on the slight increase in selling prices was owed to a return in buyer confidence in the market, “What is clear is that the Auckland market has come through the concerns created by the now abandoned Capital Gains Tax and sales are settling at current levels in a robust fashion”.
Another report from Corelogic has also revealed that the biggest property gains in the country were still being made in Auckland, where the median gain-maker pocketed $343,000. Auckland’s median loss was $28,000 and Corelogic senior research analyst Kelvin Davidson is confident that Auckland prices will remain steady as they are for the foreseeable future, “I don’t think Auckland house prices are going to go anywhere – certainly not up – in the next year or two.”
And that’s a good sign. It only for those looking to enter the market as a first time buyer but also those looking to invest, security Tim the market should always be a top priority even before making profit.