Read the article or watch the video. Graphs are also included.
Current market conditions
119 Tauranga homes sold in June. Looking at the graph below you can see this is about average or just below. Looking at the trend line for the past two years there is a slight downward trend..
We’re still down on the number of homes for sale which is holding back the number of sales occurring.
Banks are easing back on the Loan to Value Ratio rules. It’s taken them a while to get the balance right and they refined their approach. We have seen a number of sales in $200,000 to $250,000 range.
However sales in the $300,000 to $325,000 range were down a little bit. Sales in the $400,000 to $425,000 range had a spike with really good numbers there.
House prices up 17% ?
The media have been saying the prices are going up, however I question the conclusions that are being drawn. They’re basing the supposed rise in house prices on the median value. The median is simply the midpoint of the sales, it’s not based on the values of the homes sold.
So when the median has moved up, it is simply reflecting that more, higher priced homes are being sold and fewer low priced homes are being sold. This is what we would expect as the LVR rules have mostly impacted on the lower end of the market. A $350,000 home is still a $350,000 home, that hasn’t changed just because the median has increased 17% as you see in the headlines.
With all that said, house prices are strong. They aren’t up dramatically but they are solid. This is mostly caused by the shortage of listings
Winter hasn’t had an impact on the figures. Looking back at the last couple of years we haven’t seen spring have a significant impact either.
Those thinking of selling should get on the market because the buyers are there now.