January is usually a quiet month for real estate in New Zealand because of the summer holidays. Not so in January 2021. New Zealand recorded its highest number of
January sales for 5 years. What is more, the average days to sell was the lowest for 17 years at 35 days nationally.
Prices are usually down in January from December and while there was a marginal fall it was less than would normally be expected. We are living in strange times. Times of record low interest rates, where life savings for retirement give no income (after tax less than 0.5%).
Where they can people are putting their money into property. The capital gains are high and borrowing costs are very low. This drives up demand for houses and because of the long term shortage of properties prices are driven up.
Then of course there is the first home buyer scrambling to buy before the prices get even higher which again drives up the prices. The leading banks economist predict continued price rises in 2021 with increases of anywhere between 8.0% and 16%.
Even with the expected LVR (loan to value ratio) increase to 40% or even 50% for investors I would expect prices to increase by more than 10% across 2021.
|Annual Median Prices Changes January 2020 – January 2021|
|Region||Median Price||12 Month Increase|
|Bay of Plenty||$769,000.00||+13.1%|
|Manawatu / Wanganui||$525,000.00||+25.6%|
Maintain Your Property to Save Thousands of Dollars
There is an old proverb – a stich in time, saves nine. This could not be more true in relation to the maintenance of your home.
Of course there is a lot more to a house than a roof, walls, floors, doors and windows. Having A Buyer’s Choice Home Inspections do a maintenance inspection report on your home on a 5 year basis could save you thousands of dollars in repairs and replacements.
Most home owners pay thousands of dollars each year for house insurance. Why not insure yourself against huge repair bills at a cost of around $500 every 5 years?
You can contact your nearest inspector by calling 0800 86 36 36 or by visiting abuyerschoice.co.nz