Posted by lindsay on April 27, 2014
House prices have seen a dramatic upwards shift over the last 2 – 3 years. However recent statistics suggests this might be about to change, which isn’t good for potential property investors.
Last year, the Herald’s House Price Index documented an average 10.2% increase in home values over 2012, double the 5.1% in 2011. Early reports for 2013 showed values were starting to slide back a bit, with many of Auckland’s central city suburbs beginning to flatten. As an example, the greatest slow down is currently being evidenced in Westmere. Looking at value growth, the area saw a 15.8 per cent increase in 2012 year; but over the first quarter of 2013, there was only been a marginal increase of 0.2 per cent. When considering this value change, over a year that would only annualise at 0.8 per cent; a drastic reduction. Other areas such as Mt Albert, Remuera, Titirangi and many on the North Shore were all experiencing a similar fate; Herne Bay even showed a -0.1% fall.
A change in the direction of the property market is often expected after Christmas, so the next few months will be very telling as to whether the slow down is likely to continue or simply be temporary.
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