Auckland’s residential property sector has become a seller’s market, as prices in the city are more expensive than anywhere else in New Zealand, according to Massey University’s research.
Those who plan to hire a real estate agent in Auckland should notice a 53% surge in property values, while the median home price now amounts to 13.5 times than the annual median income.
The home price growth may be good news for property owners, but it will be a problem for buyers especially for first-timers. The Massey research showed that prices not only increased in Auckland between September and November year over year, but also in other parts of the country.
The increase even occurred in the Southland and Manawatū/Whanganui regions, which are the most affordable housing markets. A limited supply of listings and weaker demand serve as some of the reasons for the nationwide growth. Therefore, prospective sellers should consider hiring brokers or agents to clinch the best possible transaction. In Auckland, this strategy paid off for some owners who sold their assets for more than $1 million in 2017.
More than 35% of sold homes last year carried a price tag above $1 million, despite sales falling to 674 transactions in December from 721 deals in the year-ago period. However, the average sale price rose to almost $940,000.
This indicated that more people likely gained a profit from selling homes on the higher-priced tier. Still, prices for the lower segments of the market may continue to increase in the near future, due to population growth and a shortage of homes for sale in the city.
New Zealand’s property market, particularly in Auckland, has become a seller’s market. However, owners should consider that high prices will not be enough to warrant a listing on the market.