homes.co.nz Monthly Property Update – April 2019

Twice as many Aucklanders losing money on their homes

Early results from this year show that the rate of Auckland properties selling less than they were purchased for has more than doubled since this time last year. Auckland is now seeing 7.2% of confirmed sales resulting in a capital loss for the owners. This percentage is also trending upwards as the market decline continues.

There are 3 key themes emerging across NZ’s main centres:

Auckland and Christchurch – Auckland has a growing rate of properties selling for a loss, and Christchurch continues to see this occurring in over 12% of all sales transactions. While the trend in Auckland is a result of a soft market (and is set to continue), we expect the trend in Christchurch is a result of the remedial work that continues to go on in the city.

Wellington and Dunedin – The rate of properties selling for a loss are trending downwards as both markets continue to grow strongly. Our median HomesEstimate has increased in these areas by 11% and 13.4%, respectively. Only 1.6% of properties selling for a loss in Wellington, which is the lowest since the start of 2016, and lower than Auckland in its peak in 2016.

Tauranga and Hamilton – The rate of homes selling for a loss has remained low and steady at between 1 and 3%. Steady, but not spectacular capital growth in these areas seems to be keeping the market performing well.

This analysis highlights the changing property cycles that occur and its impact on property prices. When the market is soft as is the case in Auckland, people tend to hold their properties for longer and only sell if they have to. Conversely, when prices are increasing as in Wellington and Dunedin, the length of time owning property decreases as people are keen to realise the capital gains on their property.

One thing to remember – It’s important for homeowners to take a long-term view of capital gains ensuring they can withstand drops in property prices and can avoid being forced to sell at a loss.


April Property Update

The homes.co.nz Monthly Property Update is generated using homes.co.nz’s April 2019 HomesEstimates, providing an up-to-date perspective on house values around New Zealand.

Trends in our Main Cities

Dunedin goes from strength to strength and has Christchurch in its sights! The median HomesEstimate has increased by 13.4% since this time last year. Wellington is also growing strongly with the median HomesEstimate up by 11% and Tauranga and Hamilton continue to show steady, although not spectacular growth with median HomesEstimates increasing by 5.8% and 7.8%, respectively. The flat Auckland market continues with a slight decrease since April 2018.

NZ’s First Home Buyer HomesEstimate

The “First Home Buyer HomesEstimate” is homes.co.nz’s estimate of what a typical first home may cost. It is calculated to be the lower quartile HomesEstimate in a town.

How do we calculate these figures?

The homes.co.nz Monthly Property Update is generated using homes.co.nz’s monthly HomesEstimates and provides an up-to-date perspective on house values around New Zealand. By valuing the entire housing stock, the homes.co.nz Monthly Property Update can compare median values from month to month in a consistent and reliable way. Our HomesEstimates are calculated for almost every home in New Zealand by an algorithm that identifies the relationships between sales prices and the features of a property.

Established in 2013, homes.co.nz is NZ’s first free property information portal eager to share free property information to New Zealanders.

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The Data Team - homes.co.nz (Tom Lintern - Chief Data Scientist)

About the author

Tom Lintern is homes.co.nz’s data guy and is in the know when it comes to the property market. If you have a burning question for the homes.co.nz data team, send it through to insights@homes.co.nz and we’ll take a look!

Comments

  1. My property at 17c Vintners Lane, Tamahere. Is valued at $795,000.
    This is artificially low based on a recent internal sale between my two trusts.
    It should be around $950,000.
    Built in 97, brick and tile, 190sqm
    Plus 88sqm garage sleepout plus archgola cost $15k

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