Local purchasers deem house prices as too high – especially for first time buyers – and are hesitant to commit on buying at these prices. Demand is driving prices up though and buyers will have to anticipate paying more or missing out on securing a property.
June proved to be an eye-opener as a substantial number of sales involved Auckland buyers. They’re snatching up properties coming to the market as it is good value for money compared to what they’re up against in Auckland. Expectation is that competition will only increase as the deadline of 1st October 2015 draw closer. Higher deposits for Auckland investors will result in higher rentals – not ideal for the current conditions up there – as they are focused on return on their investments.
Vendors are not complaining as record prices are achieved. The only issue is that demand outstrips supply of properties for sale.