Housetalk Issue 190

John Goodrum — Fri, 24 Nov 2017 21:30:33 +0000

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

Housetalk Issue 189

John Goodrum — Mon, 25 Sep 2017 23:15:16 +0000

Dear Resident,

The number of sales of dwellings including apartments in Waitakere City for August was 284. There were 11 sections sold. The median selling price was $762,000. The average days to sell was 37.

	Sale Prices
Suburb	Median selling price August 2017	Number sold	Days to sell
Green Bay	$910,000	5	29
Titirangi	$800,000	18	30
Sunnyvale	$650,000	7	45
West Harbour	$1,010,900	18	49
Glendene	$875,000	11	28
Hobsonville	$967,000	14	24
Henderson	$740,000	51	39
Massey	$730,414	36	37
Ranui	$675,000	12	68
Royal Heights	$856,500	5	20
Swanson	$888,000	11	65
Te Atatu Peninsula	$770,250	14	22
Te Atatu South	$787,500	22	31
Glen Eden	$730,000	29	35
New Lynn	$719,400	28	31

Capital Gains August 2012 – 2017 Median Prices

Green Bay 64.3%

New Lynn 86.7%

Royal Heights 109.2%

The number of sales of homes in Waitakere City for August was 284, this was up from last month. Prices also increased by 3.8% over July prices. These figures reflect increased prices and sales numbers across Auckland as a whole. Sellers are not willing it seems to sell below the prices they saw similar properties to theirs sell for a few months ago. There is little doubt that the shortage of houses is getting worse in Auckland as demand is exceeding the rate of building new ones.

On that basis prices would be expected to rise. Factors likely to hinder price rises however are (1) the tight lending requirements from banks mainly because of the LVR (loan to value ratio) restrictions imposed by the reserve bank. (2) A change of government as a Labour led government would:

A. Restrict immigration which would reduce demand and slow many sectors of the economy such as hospitality and horticulture which are already short of workers and rely heavily on temporary immigrants / seasonal workers.

B. It is clear that there are not enough construction trades workers and immigration restrictions would prevent more houses been built.

C. Capital gains tax rise on any rental house purchase would mean less buyers for rental properties so prices would be inclined to fall. At the same time a sever shortage of rental properties could ensue. This rental shortage would tend to drive up rents but the government could well put restrictions on rent increases.

D. It looks likely that when a deceased estate property is sold it would not then be classed as a family home and so could be subject to capital gains tax. This is what people are calling an inheritance tax. If that became the case a properties market value would be less. Nothing is certain in life and this is especially true of the 2017 general election.

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.