The number of home sales in February indicated an increase in demand. The increase stemmed from lower prices, which may continue until this year’s autumn. A house in the city cost an average of more than $919,000, down 2.7 per cent compared to the price in February 2017.
Home builders should consider working with more land surveyors in Auckland for development opportunities to meet the increasing demand.
Strong Housing Sales
A total of 665 properties exchanged in February, whilst property listings reached almost 1,750. Both increased when compared to the prior month last year. Some economists believe that the upswing in market transactions reflected lower price growth expectations among buyers.
On the other hand, ASB Bank’s Kim Mundy noted that a ban on foreign-bought properties could be a reason for higher demand, which makes it a good time for home builders to develop more land. While lower home prices bode well for buyers, homeowners in Auckland who plan to sell their properties should reconsider and wait until the market conditions become favourable for them.
Based on the ASB Housing Confidence Survey, more people think that it is a good time to buy a house mainly because of falling prices. The poll showed that confidence in the property market among Kiwis has reached its highest level since January 2013.
Fewer people likewise expect that housing prices will increase in the future, as expectations dropped to an eight-year low in the city, according to ASB Chief Economist Nick Tuffley. This occurred as the Reserve Bank of New Zealand’s regulatory actions seemed to be doing its work to cool the market.
As home prices fall and demand increases, Kiwi home builders need to find ways on how to capitalise on buyers’ upbeat outlook on the housing market. It is best to understand the market even better by monitoring the news and gathering more information.