Dear Resident,
The number of sales of dwellings including apartments in Waitakere City for June was 354. There were 8 sections sold. The median selling price in June was $784,250 up again from last month. The average days to sell was 30.
|
Sale Prices |
|||
| Suburb |
Median selling price June 2016 |
No sold | Days to sell |
| Titirangi |
$890,000 |
23 |
37 |
| West Harbour |
$1,005,000 |
22 |
29 |
| Glendene |
$763,000 |
13 |
22 |
| Henderson |
$830,000 |
61 |
31 |
| Massey |
$712,000 |
41 |
27 |
| Ranui |
$660,000 |
22 |
32 |
| Sunnyvale |
$750,000 |
11 |
32 |
| Te Atatu Peninsula |
$1,009,000 |
28 |
30 |
| Te Atatu South |
$1,114,750 |
20 |
35 |
| Glen Eden |
$680,000 |
31 |
28 |
| New Lynn |
$720,000 |
32 |
27 |
| Swanson |
$760,000 |
13 |
32 |
| Kelston |
$688,000 |
9 |
37 |
| Green Bay |
$885,000 |
5 |
31 |
| Laingholm |
$908,500 |
4 |
45 |
| Royal Heights |
$754,000 |
6 |
24 |
Capital Gains June 2011 – 2016 Median Prices
Laingholm 130.0%
Massey 64.6%
Te Atatu Peninsula 123.2%
There was no change in the OCR (official cash rate) on the 9th of June. The next
review is on the 11th of August. The reserve bank has to “protect” the NZ economy by not allowing public borrowing (debt) to climb too high or have banks lend to high risk
clients.
They have to balance the risk of a high $NZ dollar which would hurt exporters and that happens in part when our interest rates are high (compared to overseas) so the bank wants to cut the OCR.
Stopping that however is the rapidly rising house prices especially in Auckland but now in many other cities such as Tauranga, Hamilton, Queenstown and others. When there are cuts to the OCR the cost of mortgage borrowing goes down and fuels rising house prices.
The best way to prevent increasing house prices is to build more houses but that takes time (2-5 years at least to redress the supply / demand imbalance). The quick way therefore is to reduce demand—hence the increasing LVR (loan to value ratio) or deposit required to buy.
In Auckland 46% of sales recently have been to investors. Expect an increased LVR this year for investors — probably 40%. Other Reserve Bank options being
considered are making the banks carry larger cash reserves and the possible
introduction of an income to debt ratio eg. Borrowers can only borrow so many times their annual earnings.
In the U.K since 2014 borrowers can only have mortgage payments up to 45% of their income. Such a measure will require legislation and is not likely this year. Be aware however measures are planned and will be taken to reduce house price rises.
Do you want to know the value of your property? Its probably worth more than you think. Contact me for a free no obligation value update.
Best wishes,
John Goodrum
Licensee Agent REAA 2008
021945140
thelegendofthewest@gmail.com