Core Logic – National Property Update
Core Logics, June property numbers are out, and it provides some very interesting reading with the overall market slowing down. With Queenstown Lakes average house price exceeding that of the Auckland region.
Key outtakes: There are a range of factors contributing to the slowing down of the main centre housing markets
- Tougher lending limits
- Tougher lending criteria
- Interest rates
- Election looming
The latest monthly QV House Price Index shows that nationwide residential property values for June increased 8.1% over the past year. Importantly, this is the slowest annual rate of growth since way back in March 2015! The nationwide average property value is now $639,051 and when adjusted for inflation, the nationwide annual increase drops slightly to 5.9% with values now sitting at 28.8% above the 2007 peak.
Residential property values across the Auckland Region increased 7.2% year on year, which is the slowest annual rate of growth seen since September 2012. Quarterly value growth has plateaued at 0.0% over the past three months. The average value for the Auckland Region is now $1,045,059 and when adjusted for inflation, Auckland values rose 4.9% over the past year and are at 59.6% above the 2007 peak.
More homeowners are selling properties for a profit based on the buoyant housing market conditions over the past few years, according to the data released in CoreLogic’s new report, Pain and Gain.
In the first three months of 2017, 96.3% of all homes resold did so at a gross profit compared to their previous sale price, according to the March quarter Pain and Gain report. Owners pocketed a median gain of $167,000 per sale, with almost $4 billion in profits realised nationwide.
Meanwhile, the number of properties resold at a gross loss dropped from 4.2% to just 3.7% compared to the previous three months.
this month’s quick market overview,
