It turns out that not even Auckland’s property boom could go on for ever.
Wow, what a day for property news – a one-two punch to the Auckland market.
Just as QV data was confirming that the Auckland market is well and truly stalled, along come the Barfoot & Thompson statistics showing the average sales price in June dropped 3.1 per cent on the average for the previous three months, and was only 0.6 per cent higher than it was 12 months ago.
Boom, Auckland house sales have hit the canvas.
When our optimistic friends in the real estate industry start to acknowledge a trend, we can be sure it has become an unavoidable reality.
[Auckland] property stories are now tinged with seller panic.
Meanwhile a combination of the Reserve Bank’s investor LVR restrictions, tighter bank lending and a slowing of Chinese investment money as Beijing tightens capital controls (seriously, Google it) have dampened demand.
Does this mean good news for first-time buyers? Sadly no.
The one thing that this slump hasn’t done is help first home buyers into the market. They can no longer get the loans they need even if their odds of finding a bargain at a wet wintry auction in West Auckland have improved.
The boom went on too long, prices got too high. Now they are falling, over leveraged buyers are going to get burned, and first time buyers are still shut out. Perfect. The magical efficiency of the market strikes again. How low will prices go?
Those that follow this blog will know we are entering panic fear and capitulation phase of property crash B&T & QV figures now confirm this pic.twitter.com/oP5XOTplZ2
— Elephant in the room (@LetsfixthisNZ) July 5, 2017