Home Inspection News – Issue 42

WELCOME TO OUR NEW FRANCHISEES

  • Eric Wong – Howick Area
  • Bharat Prajapati – Rotorua Area
  • Mohan Singh – Wellington & Johnsonville Areas

September 2020 Market Update

Once again house prices have increased in every region of New Zealand. Prices are up 16.4% compared to September 2019 and up 2.4% compared to a month earlier (August 2020). 8 Regions saw new record median prices:

Auckland $950,000 up 16.0%

Northland $590,000 up 16.6%

Waikato $628,000 up 16.7%

Manawatu / Wanganui $450,000 up 15.1%

Taranaki $451,000 up 15.3%

Canterbury $497,000 up 13.0%

Otago $580,000 up 17.2%

Southland $373,000 up 20.3%

All increases are compared to prices in September 2019. The number of sales nationally are down 5.6% in the last month. The time to sell was down Nationally by 5 days to 34 days compared to the same month last year.

For Auckland it was down by 9 days to 35 days. 7652 properties were sold in September making it the highest number sold in a September month for 5 years. The number of properties for sale nationally was 17,974 which fell for the 14th month in a row.

A mixture of fewer houses for sale, historically low mortgage interest rates, the removing of the LVRs (minimum amount of deposit required) and a lot of returning kiwis have all payed a part in price rises.

Is Now a Good Time to Buy a House?

The table above with the current median prices of homes and the current 12 months fixed mortgage interest rate of 2.55% shows it is cheaper to buy than rent. The figures in the table use the full purchase price of the home and only the interest part of a mortgage. Banks will require a deposit and usually principle repayments too.

These costs however could be regarded as savings. Also we know that over time house prices rise so capital gains is in addition to the benefit of buying rather than renting. Providing you can find a suitable deposit and meet mortgage payments now is a good time to buy a home. Safeguard your investment with a detailed home inspection report from A Buyer’s Choice Home Inspections.