Housetalk Issue 190

Dear Resident,

There were 240 dwellings including apartments and 15 sections sold in Waitakere City in October. The median selling price was $780,000. The average days to sell was 34.

       Sale Prices    
Suburb Median selling price
October 2017
Number sold Days to sell
Green Bay $890,000 7 7
Titirangi $890,000 13 27
Sunnyvale $650,000 7 45
West Harbour $1,100,500 11 53
Glendene $807,170 5 30
Hobsonville $955,000 14 24
Henderson $787,500 34 27
Massey $762,500 26 32
Ranui $780,000 15 38
Swanson $790,000 7 53
Sunnyvale $700,500 8 84
Te Atatu Peninsula $840,000 13 37
Te Atatu South $740,000 13 28
Glen Eden $635,000 15 34
New Lynn $656,500 30 43

Capital Gains October 2012 – 2017 Median Prices 

Hobsonville          56.8%

Henderson           79.0%

Te Atatu South    53.5%

The latest reserve bank announcement on the 28th of September left the official cash rate (OCR) unchanged at 1.75%. Little has changed to the economy and the OCR is not expected to change this year and perhaps not in the first half of 2018. Following the election of a coalition government of the 2nd and 3rd parties in the general election, there is likely to be significant changes to the property market.

Signalled are cuts to immigration, overseas buyers not allowed to buy a house, extensions of the bright line test from 3 years to 5 years (buy and sell in less than 5 years and you will be required to pay capital gains tax). More restrictions on landlords and a warrant of fitness for rental property are just some of the impending changes. Since the announcement of the coalition government the New Zealand dollar has fallen which will make purchase of all imported good more expensive -  including building components.

 

The real estate industry and others have been lobbing for the LVR (loan to value ratio) restrictions to be eased especially for first home buyers but so far there is little indication that the reserve bank will listen. Adding to the mix is that the government wants to build an extra 10,000 houses a year (highly unlikely) due to the shortage of building tradespeople. We still have a shortage of about 40,000 houses in Auckland so taken together with all the above factors it is very difficult to predict what will happen with prices.

If I had to make a forecast -  no change this year and small increases next year. 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

 

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