October Market Update
Yet more new records were set for Real Estate prices across New Zealand in October. Auckland’s median price reached $1,000,000! 9 other regions across the country reached new record median prices too. Last month alone in Auckland prices rose 4.7% and 5.2% across New Zealand.
For the last 12 months Auckland prices have increased by 16.3% and nationally they have increased by 19.8%. Here are the regions with new record median prices and their 12 month
Gisborne up 34.1% to $570,000
Marlborough up 26.8% to $565,000
Otago up 22.7% to $532,000
Wellington up 20.8% to $785,000
Manawatu / Wanganui up 17.5% to $470,000
Northland up 16.5% to $600,000
Auckland up 16.3% to $1,000,000
Bay of Plenty up 16.2% to $720,000
Waikato up 15.9% to $565,000
Canterbury up 9.7% to $465,000
Despite the price rises, sales volumes or number of property sales has been up both on last month and for 2020 compared to 2019. Nationally there were 25% more residential sales than in 2019 and in Auckland sales were up 50.9% for the year.
No LVR (loan to value ratio) or minimum deposit restrictions by the reserve bank, a big shortage of houses, record low interest rates and influx of kiwis returning to NZ due to Covid19 has lead to these increases. At the last OCR (official cash rate) announcement the rate remained unchanged. The reserve bank signalled that it would bring back the LVR restrictions when it next meets (February 2021) which would be implemented in March.
The LRV restrictions will certainly apply to investors, reducing the number of rental properties available and driving up the rents. It is not clear if first home buyers will be affected. It is very likely that they will but the restrictions may be lower.
Why you should use an A Buyer’s Choice Home Inspector
Did you know that there are no regulations that control house inspectors in New Zealand. Literally anyone can print a business card, say that they are a home inspector and that in New Zealand is legal.
Such a person can operate without any insurance, let alone the proper insurance and that too is perfectly legal in New Zealand. That is not the situation in most developed countries around the world.
In Canada and USA for example, home inspectors must pass exams after completing an extensive home inspection training course – either at a college or online.
As part of an international franchise operating in 19 countries around the world, all A Buyer’s Choice Home Inspection inspectors have to complete the same course and pass the same exams as inspectors in USA and Canada.
Furthermore all A Buyer’s Choice Home Inspection inspectors including those in New Zealand must pass the InterNACHI (International Association of Certified Home Inspectors) membership examination.
Qualifications and Professionalism!
InterNACHI is the worlds leading professional body for home inspectors who have members in over 82 countries world-wide. To maintain membership of the prestigious professional organisation, all members must abide by its code of ethics and undertake 24 hours of continuing education every year.
As well as the formal qualifications all A Buyer’s Choice Home Inspection inspectors in New Zealand have to complete a 5 day in-house training course.
That is followed by the newly qualified inspector accompanying our experienced, qualified inspectors on 10 onsite inspections. All new inspectors reports are reviewed before release to customers until quality assurance it satisfied.
Next there is the matter of professional indemnity insurance. All A Buyer’s Choice Home Inspection inspectors in New Zealand carry the best available professional indemnity insurance underwritten by Lloyds of London.
Don’t be mislead by some who claim to have professional indemnity insurance – for your own protection ask to see their policy. Ensure it clearly covers home inspections and is profession indemnity insurance, not some other type of insurance.
Home inspections are a specialised service which requires specialised qualifications and training. It is not a job for a builder who is specialised in building, but perhaps not electrical or plumbing or a waterproofer or HVAC, or many other specialised trades that go into constructing a dwelling.
Finally the reputation of the inspector used is of great importance. All inspection companies will say that they are the best. Check them out on the leading building related INDEPENDENT website NoCowboys where all reviews are verified and cannot be altered except by the person posting the review.
Google A Buyer’s Choice on No Cowboy’s and check us out!