American’s interest in NZ Property has catapulted in last two days.
“Americans may be weighing up their options as the US election comes to a conclusion, and there are clear indications they are increasingly looking at New Zealand as a viable option,” says realestate.co.nz CEO Brendon Skipper.
“Interest from US citizens in New Zealand homes for sale has catapulted in the last two days,” says Brendon.
Real time statistics from realestate.co.nz (New Zealand’s biggest real estate listing website) show that traffic for 7 – 8 November 2016 from US citizens to the site was up 141 per cent compared to the same two days a year ago.
“The spike follows a month of increased activity in the lead up to the election,” says Brendon Skipper.
In the month leading into the election (Oct 9, 2016 – Nov 8, 2016), American based users are up 51.36 per cent compared to the same time last year
“On average, they are spending almost seven minutes on site, indicating they are having more than a casual glance.
Search terms suggests that they are looking at their options across the country, but perhaps with a skew towards Auckland.
Search terms include “homes for sale in New Zealand”, “houses for sale New Zealand” and “Auckland real estate.”
“It’s also a younger demographic which is looking to New Zealand, with almost half (44.2 per cent) in the 25 – 44 age bracket,” says Brendon Skipper.
The average value of a NZ home now $622,309,
in Auckland it’s $1,045,207.
Average housing values are continuing to rise throughout the country but the rate of growth is slowing, according to Quotable Value (QV).
The average value of a New Zealand home is now $622,309 based on sales over the three months to the end of October.
That’s up 12.7% compared to the same period last year, but that rate of growth is slowing.
The average value of a New Zealand home at the end of September was $619,660, which was up 14.3% compared to the same period of last year.
The same trend is evident in the upper North Island centres, where property values continue to rise, but at a slower pace, with the annual increase in housing values in Auckland declining from 15% in September to 13.8% in October, while in Hamilton it declined from 27.1% to 25%. In Tauranga it was down from 28.1% in September to 27% in October.
According to QV the rate at which housing values are increasing in Auckland is the slowest it has been since March last year.
New LVR restrictions take effect, Wellington unaffected
However that may not be much comfort to people struggling to get into the housing market in Auckland, where the average value of a home is now $1,045,207. and even in Franklin, the southern most part of Auckland which has the cheapest house prices, the average value is $641,668 (see the table below for average values and annual growth rates for all parts of the country).
“The QV House Price Index is now showing a slight tick to the right which reflects an easing in the annual rate of growth over the past month as the latest round of LVR restrictions begin to take effect,” QV national spokesperson Andrea Rush said.
“Sales volumes are down by around 12% on the same period last year and mortgage approval rates are also down.
“Home values continue to rise faster in the Wellington region than the Auckland region and the housing market in the capital appears largely unaffected by the new LVR restrictions, particularly at the more affordable end of the market in areas such as the Hutt Valley, Porirua and the Kapiti Coast.
“Auckland, Tauranga and Hamilton home values are continuing to rise, just at a slightly slower pace than they were prior to the new LVR measures being introduced.
“The Dunedin market also continues to see good levels of activity and demand, while investors are less active in the Christchurch market and home values there continue to show only modest growth.
“The new build market remains strong as the new LVR restrictions for investors do not apply for new homes.
“Less established investors appear to having difficulty raising finance with the new 40% deposit requirement, while recent CoreLogic Buyer Classification Data shows that 34% of investors with five or more properties do not need to raise a mortgage so are not affected by the new LVR rules.
“Those investors shut out of the more expensive markets appear to be turning their sights to more affordable markets in relatively close proximity to North Island main centres,” Rush said.
QV House Price Index October 2015
Territorial authorityAverage current value12 month change%
Auckland Region $1,045,207 13.8%
Wellington Region $558,886 21.1%
Main Urban Areas $747,507 12.6%
Total New Zealand/Nationwide $622,309 12.7%