With like the dreaded “Auckland Property Bubble” seemingly popping, described by the slowing housing market, perhaps it is about time you consider the best possible alternative. Auckland House Prices continue to dip with sales typical of the recession periods taking over the mainstream amid the continued calls for a permanent measure. Will the correction in prices of houses in Auckland last?
After peaking in October 2016, prices have managed to slump, although it might need to slope more to restore some modicum of affordability. If not, it might take a little more than 20 years for average income to catch up and make everything affordable once again.
House prices in Wellington rose by over a quarter in a year in 2016, and the average cost increased by more than 50% since 2012 across the whole of New Zealand. In fact, the most recent rise in interest rates casts a spell of doom to the entire industry, despite the optimism surrounding the cautionary measures and the glimmers of hope that the dust will settle soon.
As you probably know, a slowdown in the property sector will trickle down to the building and construction industry whereby fewer homes will be built. And, given that all these problems are structural, the only solution may be at the hands of the concerted and enduring politicians. But until then, there must be a better alternative to the pricey houses in Auckland.
Today, it is taking much longer for a house to sell in Auckland compared to the recent past. The average 39 before getting a buyer is, however, a bit favourable, unlike the 50-day waiting period during the previous recessions. One of the reasons for such a phenomenon is the volatility of the entire scene – asking prices on listings rising every day. Another possible attribute to the happenings is the high-interest rates that deter people from applying for loans from banks.
Prospective House Buyers have been feeling coy towards the bizarre costs, with many resorting to moving away. The first groups succumbing to the property crisis are shifting from Auckland to far away and possibly cheaper locations including the rural Otago town of Middlemarch. The reason for the decision is how the two places compare.
To them, notably Sarah McCrorie and her husband, Nigel Howe, Middlemarch isn’t crowded, expensive to live in and arrogant. It is just warm and welcoming, in particular for a couple whose net income is far from what one can average to live a cosy life in the city.
Meanwhile, still rising rapidly are the properties’ asking prices, an issue that’s stopping potential buyers from making the purchase. Of course, one can’t afford to try the fair-weather friends like banks for a loan. Therefore, the best alternatives, for now, are heading out of town, much like how many are doing.