December statistics provided further confirmation that the housing market has cooled. At the same time there is an apparent calm about the market. With confidence that whilst volumes are low, and prices have corrected slightly the market remains stable and this recent correction may well have prevented something more drastic happening to the property market.
North Shore sales volumes in December were the lowest since the 2008 GFC. There were 213 North Shore sales in December 2018 compared to 278 in December 2017. 2017 and 2018 annual trading volumes were relatively similar, with 2018 volumes 4.6% lower than the prior year.
Median prices on the North Shore also saw a decline of 11.6% to $980,000 when compared to December 2017.
Days on the market have crept up sitting at a median of 40 in December.
There is an eclectic combination of factors contributing to the current market, ultimately producing an element of more than usual choosing to ‘wait & see’. The current market is producing great opportunities for buyers and we have experienced a marked increase of first home buyers. Some of the factors influencing the current market are the introduction of the new Overseas Investment Act, the declines in the Australian property market and potential Capital Gains Tax for investors. On the contrary Auckland has a housing & rental property shortage, low interest rates and not to forget ‘the North Shore is a great place to live’!
All in all, we predict an interesting year and a stable market. There will be a necessity for those vendors looking to move on to ‘meet the market’ as it turns slightly in favour of buyers. It will be a year where choosing to align with the best available property experts will be rewarded.