Interesting times in the Auckland property market. A year-on-year comparison of house price growth by Core Logic shows some parts of the city are still seeing some price increase but that’s not a unanimous picture, and the increases aren’t exactly huge:
  • Rodney is down ever so slightly by about 1%
  • North Shore is up everywhere by around 2-4% depending on the suburb
  • Auckland city itself is up 2-3%
  • Waitakere is flat
  • Manukau East is down while the central and northern part are up, to give a flat performance overall
  • Papakura up 1.5%
  • Franklin up 1%
It’s a stark contrast to what was going on in 2015 and 2016 where everywhere was up, and up a lot. In my book, 1-2% growth across a region is the same as saying no growth so I’m gonna call house price growth in the Auckland region as being flat as a pancake. You can see it in how home buyers are approaching property. We’ve got customers who are keen to buy in the Auckland property market and pre-approved to do so but they’re not feeling any urgency. They’re being cautious, taking their time, and are increasingly prepared to walk away. Good on them. Offers with a full suite of conditions or an all encompassing due diligence clause are now the norm through our office. Against that, we’ve seen plenty of cash out clauses being inserted by vendors, and while I understand why you might use one, I haven’t seen one being activated for over 12 months. Longer actually. Makes me wonder why you’d bother. Truth is that a better offer probably won’t come along, and if it does it probably won’t materialise unless the deal in progress fails. As I say, buyers are highly likely to take a ‘see how it goes’ approach, even if they love a property. It all adds up to a situation where the buyer has more control over the process than they have had for years, particularly in those areas which are traditionally first home buyer territory (ie. West and South). We’re also seeing buyers being more aggressive when making offers too, they’re not so worried about vendors thinking they’re being cheeky. On the other hand, you can also see the first rule of real estate in play – location, location, location. Desirable locations tend to see growth in all markets. Maybe not double digits all the time, but they hardly ever go backwards. Stats in central Auckland and over on the Shore tell you that. My advice as always is to understand what your financial position is before you get too far down the track. In the current market that applies as much to vendors as it does to buyers. Where are you at at the moment? Whether you’re itching to make a first home purchase or move on to your next home, we’re always here to give impartial, straight up advice when you need it, so please get in touch.
About Campbell Hastie

Cam is one half of Auckland based mortgage brokers, The Go 2 Guys.

He makes a living by sharing what he knows about mortgages with people, arranging mortgages for people and then insuring people.

He doesn't claim to know everything about mortgages himself which is why he teamed up with David Mercer — hence the ‘2’ in Go 2 Guys.

He writes posts regularly on his blog and has been told he has an ability to share his knowledge in a simple and sometimes memorable way.

Feel free to comment and ask any questions. Contact Campbell Hastie m: 027 697 7789.

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