There are many Auckland realty agents that can help you buy or sell a house. Their help can make the process of buying and selling a home easier and more time-efficient. These agents can help find the right house for you, based on your needs and budget. It’s great that these agents will work hard to earn and retain your business.
Average home price
Despite a slowing New Zealand housing market and numerous negative reports on the housing market, Auckland realtors say that the market remains active. They also claim that active buyers remain available despite the fact that there has been a decline in housing prices. While New Zealand’s housing markets are expected to show a slight increase in spring, it hasn’t been as strong as previous years.
The home values in New Zealand are down compared to a year ago in all major cities, with the exception of one. The greatest declines were seen in Auckland and Waitakere. However, Napier was positive and Wellington had some positive values.
While credit constraints are getting tighter and interest rates are rising, the housing sector is still active. Sellers want to sell properties in the spring. There are still properties available that are below the median.
The Auckland central suburban areas saw the greatest decline. Their average home value fell by -6 percentage points. However, significant declines were seen in the majority of other districts.
Queenstown Lakes District property values rose by 11.7 percent. On the North Shore, the average value increased by 9.4 percentage. Values also rose in Central Hawke’s Bay and Wairoa Districts.
There is an increasing number of New Zealand cities where property values are declining over the past few months. Tauranga is the latest addition to this growing list. This means that Tauranga’s median value has dropped 6.9% in the past 12 month.
Auckland’s average house price has dropped by $157,000. This is the 3rd quarter in succession that values have fallen. However, each quarter’s declines seem to be accelerating.
Other main centres are continuing to fall into negative territory with credit constraints, interest rates and credit constraints putting a dampering on the market. The decline in values seems to be slowing across most provincial centers.
Number of properties sold
According to REINZ, Aotearoa’s property market increased by 128.8 percentage. According to the same data however, the number and sale of properties decreased by 26.4%.
New Zealand’s HPI (house price index), rose 6.3% during the twelve months to April. Seasonally adjusted, the house price index saw a decrease of 0.01 per cent in December and 0.03per cent in January.
Auckland saw 248 property sales worth $5 million and more in 2021. This number has increased by 93.8% when compared with 2020. In addition, the number selling properties for at least 3 million dollars increased by 81.6%.
The prices of properties continue to rise but the growth rate is slowing. This could be because of the increasing number of properties available on the market. Resale prices in some areas were almost twice as high. One Victorian homestead was sold in the south Auckland area for $1 million. It went on sale for $1.7 million within six months.
Aotearoa saw a decrease of 1.7% in new listings in January. Wellington is at the bottom of New Zealand regions’ HPI rankings for the ninth month.
The number of properties that are available to buy in New Zealand fell 2.2% between July 2021- July 2022. New Zealand’s million-dollar property market saw a 94.6% increase, with a 81.6% jump in the number properties that are selling for more than $5 million.
The number of properties that were auctioned decreased by 8.8%. Only 16.3% were sold by auction in July 2021 compared to 26.1% for July 2022.
Foreigners purchase homes
While it is possible for foreigners to buy a New Zealand house, there are certain caveats. The Overseas Investment Office relies upon the honesty of lawyers as well as transaction facilitators. The Overseas Investment Amendment Bill also was passed. This severely restricts foreign ownership for New Zealand property.
Foreigners are permitted to buy single family homes, but they cannot purchase large amounts of luxury properties. China is followed by Australia as the largest foreign buyer. New Zealand property prices have increased an average of 114% in the last five-years.
A recent study has shown that only a tiny fraction of all residential property transfers to the country were due to foreign home purchases. However, the International Monetary Fund called for the government’s reconsideration of its ban.
New Zealand welcomed 71.100 foreigners over the last year. The country’s restrictive immigration policy means that many of these foreigners have no chance of returning.
Foreign owners purchased 174 New Zealand residences in December. This amounts to 3% of all residence property transfers.
The Overseas Investment Office has approved a variety of properties for foreign investors. Certain properties must be approved by the government before they can be sold.
To stop runaway housing prices, the government has placed restrictions on several aspects of life. Non-residents cannot buy existing homes but can purchase large apartments and hotels.
To stop a spiral in housing prices, the Overseas Investment Act (OIA) was created. However, the ban against foreign home purchasing has yet not been put into effect.
New Zealand’s ban on foreign currency has been called into question by the International Monetary Fund. However, the International Monetary Fund has stated that it is unlikely that the new law will improve housing affordability.
Commissions charged
No matter if you’re selling a house or renting a property, it’s likely that you will pay commissions for real estate agents. These fees pay for the costs of the property transaction (such as marketing, advertising, etc.) and are split among the agent and company.
There are many different commissions charged by New Zealand real estate agents. There are a few agents who charge a fixed fee and others that charge a percentage from the sale price. A real estate commission calculator can help you determine the final cost to sell your property.
A real estate agent earns approximately $84,500 annually. Agents may refuse to negotiate and are not paid a commission. This can be dangerous since the agent is not compensated if the property fails to sell.
Property Developers and Licensing Board regulates the commissions charged real estate agents. New Zealand has an average commission of 2.9% for sales less than $400k and 2.5% if sales exceed $350,000.
The market for real estate has rebounded from the 2008 downturn. Expect prices to continue rising over the next 12 month. It is unlikely that the market will reach its prerecession level of 2020.
For many years, real estate agents have not had to change their commissions. However, commissions charged to real estate agents are declining. This is due to stagnant properties.
Many agents are also quitting. A Herald calculation recently estimated that New Zealand’s real-estate agents had charged about $2 billion in commissions over the past 12 months.
Real estate agents are also making more as house prices rise. Auckland’s average asking prices have increased from approximately 800,000 dollars to $1million. This means agents are able to charge more for higher-priced properties and make more money.
Working with a professional real estate agent
The process of purchasing a property can be exciting and rewarding. A good real estate agent can make this process easier. It is essential to find a good agent that can give you all the information necessary to sell a property. Good agents can ensure you get the highest price for your property.
You must hold a relevant qualification in order to become an agent. You can earn this qualification by taking a Graduate Diploma (Real Estate) in Business Studies. You will also require a license as a salesperson. Massey University offers this qualification.
Real estate is a competitive industry. It is crucial that you stay on top of the latest developments in the field. By attending real estate seminars, conferences, or workshops, you can do so. These events will give information on the real estate market. There are also real estate agents who will offer tips and tricks to help you make your property standout on the market.
A property can also be bought without the involvement of a real-estate agent. This is an excellent option for New Zealanders who don’t wish to deal with third parties. There are some risks. It’s possible that you don’t get the right information. You could even end up paying more.
The average asking for property in Auckland has risen from 800,000.00 to 1m. While the average asking price for a property in Auckland has increased from 800,000 to $1m, the proportion of agents charging a fee has not changed. There are real estate agents who have lowered their fees.
