Cash sales declining: Property IQ
The firm of property analysts said it wanted to tackle the question of how many buyers were from overseas, in response to anecdotal information about people paying over the odds, particularly for Auckland property.
“While we can’t specifically nail down whether sales are in fact from foreign buyers, we can look at the proportion of house sales that were supported by a mortgage. This then gives us the flip side, the amount that didn’t have a mortgage and were therefore purchased freehold or ‘cash’.”
Between 2004 and 2007, the number of sales reached about 9000 a monthand up to 18% of those were done without a mortgage.
The downturn between 2008 and 2011 resulted in a drop to 3500 to 5000 sales a month and cash sales increased to a quarter of transactions. First-home buyers and investors were largely absent from the market.
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