Positive sentiment dominates among New Zealand’s consumers but challenges remain for the housing market.
The latest update on the housing market and economy from CoreLogic paints a largely upbeat picture with the labour market and general economic conditions improving.
However, the housing market’s challenges are highlighted with falling sales nationwide, especially Auckland; while prices are flat nationwide as values in Auckland, Hamilton and Tauranga soften.
CoreLogic does expect values to rebound following the election but forecasts that any gains will be “significantly slower” than in recent years. Housing market activity is also slower than in recent years with Auckland and Hamilton being hit notably harder by the slowdown.
Better activity levels are evident in smaller markets in the lower North Island and broadly across the South Island, with similar levels of activity to last spring and up year-on-year.
Listings are roughly in line with last winter.
By share of buyer type, investors have seen a rebound in the second quarter following two slower quarters; first home buyers make up 21% while the proportion of movers remains flat.
There has also been a rise in new buyers to the market who are paying in cash rather than a mortgage but the report suggests that their share of the market activity increased as other buyers stepped back.
The report shows $1.03 trillion of residential real estate in the second quarter with 23% ($239 billion) secured by mortgages.
Other findings from the research shows a rise in the net loss of Kiwis to Australia but notes that increased costs for New Zealanders studying in Australia is likely to mean a lower net loss than we are used to.
However, the housing market’s challenges are highlighted with falling sales nationwide, especially Auckland; while prices are flat nationwide as values in Auckland, Hamilton and Tauranga soften.
CoreLogic does expect values to rebound following the election but forecasts that any gains will be “significantly slower” than in recent years. Housing market activity is also slower than in recent years with Auckland and Hamilton being hit notably harder by the slowdown.
Better activity levels are evident in smaller markets in the lower North Island and broadly across the South Island, with similar levels of activity to last spring and up year-on-year.
Listings are roughly in line with last winter.
By share of buyer type, investors have seen a rebound in the second quarter following two slower quarters; first home buyers make up 21% while the proportion of movers remains flat.
There has also been a rise in new buyers to the market who are paying in cash rather than a mortgage but the report suggests that their share of the market activity increased as other buyers stepped back.
The report shows $1.03 trillion of residential real estate in the second quarter with 23% ($239 billion) secured by mortgages.
Other findings from the research shows a rise in the net loss of Kiwis to Australia but notes that increased costs for New Zealanders studying in Australia is likely to mean a lower net loss than we are used to.
