47 less residential properties sold each day in August, the latest data from the Real Institute of New Zealand (REINZ) shows.
Overall, the number of properties sold across the country fell by 20 per cent during August, a reduction of nearly 1,500 when compared to the same time last year. Auckland was hit with the one of the biggest reductions in volume at 21.5 per cent.
Fewer sales but rising prices
Bindi Norwell, Chief Executive, REINZ, commented on the impact this may have on those looking to purchase their first home.
“We’ve seen the number of properties sold across the country drop significantly. The drop in volume this month meant that, on average, 47 fewer properties were sold each day in August 2017 in comparison to August 2016 – that’s a big drop. Banks’ lending criteria and LVRs are still impacting first home buyers and investors,” she said.
“If you looked at the number of properties sold, without looking at the bigger picture, one might assume that the market was showing significant signs of slowing. However, as prices are holding up, and even increasing, then it suggests that people may be holding off from selling their property unless it’s absolutely necessary,” Norwell elaborated.
And prices are definitely still holding up. Residential property prices across New Zealand increased by over 8 per cent year-on-year to reach $530,000. Further, REINZ statistics show that, on a month-on-month basis, Auckland’s median price increased by 1.2 per cent.
In a housing marketing that many find difficult to break into, what can you do to increase your chances of a successful purchase?
Tips for securing your first home
If you’re purchasing your first home without an unlimited budget, the experience can be understandably nerve-wracking. But it’s crucial to go into the potential purchase with a plan, not only to avoid overspending beyond your means, but to help negotiate the sale in a quicker and easier manner.
Below we’ve set out a few tips to help you make the most of your purchase opportunity.
- Feel free to negotiate the price – Do so reasonably and without being rude.
- Use uneven numbers and mathematical workings to show that your offer is considered and well-thought-out.
- Resist allowing yourself to be pressured by real estate sales tactics, instead set firm deadlines around offers being negotiated and accepted.
- Would you let pride get in the way of securing your dream home? In the grand scheme of things, is another $1,000 or $2,000 worth missing out on your family home?
- Don’t be afraid to ask how many times other people they looked at the property. This will let you know whether you’re the only interested party, and how strongly you will need to negotiate.
Let our team assist you in your purchase
At Maxim Legal, we aim to achieve best possible outcomes for our clients. Our team will review all conditional documentation for your proposed purchase, so you can make an informed decision on the property. One of our core aims is for you to avoid any nasty surprises well after completing the purchase of the property.
We obtain our information from Land Information Memorandums (LIM reports), titles, digital databases and public information that we have access to, then raise any concerns we may have to you in a clear and understandable manner.
If you need assistance with purchasing your first, or next, property, contact the team at Maxim Legal today. We make sure everything is in order, so you can focus on negotiating and securing your new home.