The housing market is turning a ‘mad scramble’ right now as buyers compete for limited listings across most of New Zealand.
After many experts predicted a major property market downturn, instead the market has gone in completely the other direction: after an unusually active winter, there’s been a dramatic spring boom.
Records are being set all over the shop:
- The national median price in September was $685,000, a new record, and record median prices were also set in Auckland ($955,000) and eight other regions across the country.
- First buyers are leaping into the market as never before, taking out a record $1.34 billion in home loans in August, although many are missing out due to the rapidly-rising market.
- Home loan interest rates are at record lows. Currently, Heartland Bank is leading the pack with a pretty astonishing 1.99% one-year home loan rate, but expect to see other lenders following suit.
- Rising prices have been reflected in a record high REINZ House Price Index, which rose to 3145 in September after the number of properties sold in the month was the highest in 14 years.
- Inventory levels are at their lowest on record, down 17% on the same time last year.
Pre-election uncertainty usually leads some people to put off house-buying, so it’s possible we’ll see an even stronger surge in sales now the result is in. One thing looks certain: anyone who’s been waiting for a big drop in price to snag a bargain is out of luck.