City Sales Report Property Market Back to a Healthy Level of Activity

Scott Dunn, Licensed Apartment Broker for City Sales, is reporting that, “After a real tough market for the last 18-24 months we have 12 auctions booked already for our 28 August schedule, signifying the market is back to a healthy level of activity and there is fantastic buying around.”

The Real Estate Institute has released its statistics for July, which show the number of homes sold across the country in the month lifted 3.7 per cent from the same time last year to 6118. It was the highest number of properties sold in a July month for three years, and in Auckland, the rate of sales increased 6.6 per cent, year-on-year, to 1894. Volume growth was particularly strong in Papakura, Manukau and Waitakere.

This is the first time in eight months that the number of properties sold around the country has increased on an annual basis, suggesting some early signs of growth. Some of this can be attributed to more certainty post the removal of the capital gains tax, but it's also about pockets of renewed confidence and parts of the market finding its new normal in terms of pricing.

With August's surprise 50 basis points drop in the official cash rate, going forward we would expect to see even more signs of growth – especially as we move towards the warmer weather when we tend to see more activity in the market.

However, the growth in sales in July does highlight the potential for further activity in the housing market: fixed mortgage rates have continued to drop lower, the falling official cash rate is making people want to find investments that will make them more than term deposit interest, the idea of a capital gains tax off the table, and the loosening of loan-to-value ratio restrictions at the start of this year will all be contributing to more buzz in the property market.

Cameron Bagrie, of Bagrie Economics, says the market seemes to be stabilising, "Sales volumes are starting to tick up a bit and turn the corner which is somewhat encouraging."

For more information on new apartments Auckland, rental property management and apartments for sale Auckland City please go to http://www.citysales.co.nz .