Surveys reveal buoyant market

Asking prices have reached another all-time high and the loan-to-value restrictions have not slowed investors’ intentions of buying, two sets of data released today show.

Friday, November 1st 2013, 12:00AM

by The Landlord

Realestate.co.nz issued its monthly report, which showed increases in asking prices across all the major regions.

The national average asking price in October was $482,063, up from $466,526 in September.

Realestate.co.nz’s acting chief executive Philip Dunn said the increase was driven by all the main centres reporting all-time high prices. “Particularly notable is the increase by just over $16,000 in Auckland to make their new asking price a high of $666,126.”

The Hawkes Bay, Wellington and Canterbury regions all experienced significant increases in asking prices and set new records.

An average property in the Hawkes Bay is selling for $375,209 while in Wellington and Canterbury buyers could expect to pay $465,050 and $441,908, respectively.

Listings also improved – all regions reported more new properties coming on to the market, except the West Coast. Listings are up 27%, to reach 13,978.

The number of Auckland listings has risen by 28% and Christchurch also appears to be showing signs of supply improvements.

Dunn said: "“Listings are up, asking prices are up… seller confidence is high. Inventory has stayed relatively flat but there has been a slight ease in pressure."

BNZ chief economist Tony Alexander has reported similar buoyancy in his latest consumer confidence survey.

He found that in spite of the new loan-to-value restrictions, which kicked in last month, the gross percentage of respondents thinking about buying an investment property had risen to 6.1% from 4.2%.

He said: “The change is greatest for those aged 30-34 with a rise to a net 14% thinking about a purchase from 2% in October.”

Respondents were also asked what they thought of the rules. Of the 524 responses, 164 said they support the rules, 242 opposed them, and 118 were indifferent or had no view.

Only those aged 65 or over were strongly in favour of the restrictions.

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