It seems things are finally starting to slow down in the Auckland property market according to some commentators.
The article House sales show big drop in ‘perfect storm’ suggests a perfect storm of interest rate hikes, lending restrictions and inclement weather is being blamed for a slump in house sales.
Volumes and loan approvals are down 15 to 20 per cent on last year, according to QV data out yesterday.
Andrea Rush, QV spokesperson, said the decline had hit new and existing loan approvals nationally and economists watched these trends closely.
Bruce Patten, mortgage adviser with LoanMarket in Highland Park, also noticed the change but thinks it might not last.
“This last month has been considerably quieter than any time in the last 18 months. The loan-to-value ratios are biting, interest rates going up are having an impact and there’s the election. We’re seeing a more traditional winter, wet and cold. People just don’t go wandering into an open home because it’s sunny and fall in love with it because it’s sunny,” Mr Patten said.
In another article the experts point out various hot spots that are starting to slow down.
QV says Auckland property hot spots cooling suggests Auckland’s property market “hot spots” could be starting to warm down, according to QV data out today, which cited changes in Waitakere, Flat Bush and Papakura.
Bruce Wiggins, QV valuer, named these three areas, saying value rises in the latest data were less spectacular than they had been.
“We are seeing a gradual reduction in the rate of growth in property values in some areas and more sellers opting to put on an asking price or sell by negotiation. The gradual reduction in growth is particularly noticeable in ‘hot spots’ such as Waitakere, which was up more than 17 per cent year on year a few months ago and is now showing a 15.2 per cent increase year on year and Papakura, where values are also flattening off,” he said.
“Within Flat Bush, there appears to be a flattening of prices in recent times. This may be due to a number of builders/developers who bought land on terms at around the same time completing construction with the new builds appearing on the market at similar times. This can create an over-supply and may affect values somewhat there,” Wiggins said.