The most commonly asked question our team gets is; “how’s the market?” I thought the following excerpt from a report referred to in Core Logic’s June newsletter summed it up well with its national overview across New Zealand as a whole.
The proportion of properties resold for more than the original purchase price (i.e. a gross profit, or ‘gain’) in the first quarter of 2019 was 96.5%, slightly above the figure of 96.2% in the final quarter of 2018. The high proportion of properties resold for gain in the first quarter of 2019 continues the pattern that has prevailed for a few years now. Indeed, the percentage of properties onsold for a gain has been more than 95% ever since the third quarter of 2016.
Given that property values have been rising pretty much right across the country for several years now, it’s no surprise that the gain figures at resale are high.
The flipside of high levels of gain, of course, is low levels of pain. The proportion of properties resold for less than the original purchase price (i.e. a gross loss) was 3.5% in the first quarter of 2019, slightly down from 3.8% in the last quarter of 2018. Where a property has previously had a building consent issued against it, or in other words has been renovated, the degree of pain is even lower. Just 0.3% of property resales in the first quarter of 2019 had previously been renovated but still made a gross loss.
So I think it’s fair to say the market is alive and well! Call us now for a free market appraisal.