Auckland’s property market plateaued for a couple of months (December and January) but sales activity picked up in February. There were more property listings last month than in February 2015 plus a modest increase in the average asking price.
RealEstate.co.nz reports Auckland’s average property price increased by a modest 4.5% on the previous month, January. This increase would have come as a surprise to many especially commentators whom were predicting a fall off in the market and specifically in asking prices due to home buyers being locked out of the Auckland market. Auckland property investors have bought properties in the regions. Bay of Plenty has witnessed double-digit percentage growth in property asking prices and sales volumes.
More Auckland properties made it on sales listing sites in February 2016 compared to February 2015. According to interest.co.nz there were 4202 new property listings in Auckland in February, however the listings were from higher value properties not homes for first home buyers. Listings from the lower end of the market are still in very short supply.
Low interest rates are still attracting home buyers to Auckland properties with Auckland mortgage brokers working hard to secure the best fixed rates on offer for their clients. HSBC recently launched a 3.95% 18 months fixed rate offer however uncharacteristically the other banks did not follow their lead.
The current OCT is 2.5% and the next announcement from the RBNZ is on Wednesday 10th March. A drop in the OCR could trigger the banks to drop fixed rates further.
This blog article was written for PropertyBlogs by Mobilize Mail.