Are Auckland house prices dropping?

But prices continued to rise, in one Auckland area by 50 per cent annually. Auckland house sale volumes fell 20 per cent from 3234 a year ago to 2576 last month when thousands of the city’s agents were restricted under the alert levels to working remotely or online.

Is there a housing shortage in Auckland?

Auckland’s housing supply has not kept pace with increases in population or met demand for investment, creating the current housing crisis. Over the past 15 years the median house price in Auckland has nearly trebled, and in the past five years is has increased by over 35 per cent.

Will NZ house prices collapse?

A major New Zealand bank is predicting house prices will fall in the second half of 2022 as supply meets demand, interest rates increase and credit conditions tighten. In a report on Wednesday ASB said it’s forecasting house prices will experience a cumulative fall of four percent next year.

Will house prices Drop in NZ 2020?

In May 2020, the RBNZ predicted NZ house prices would fall by about 10\% due to the initial Covid-19 outbreak, instead they went up about 30\%.

Why are house prices rising in NZ?

The same factors continued to drive price increases, she said. “They are supply, demand and relatively low interest rates. There is also a sense of FOMO driving buyers for now.” In Auckland, the median house price increased by 25.0 per cent for the year to $1.25 million, which was a record high.

Are house prices rising in New Zealand?

New Zealand’s lead advisor to the Government on economic and financial policy expects house prices to increase more than 10 percent in 2022 – after a 29 percent rise in 2021.

Why is Auckland in a housing crisis?

“Separations, domestic violence, alcohol abuse, drug abuse, [they’re] stressed, trying to deal with how to get by day by day.” Solo dad Leigh rents a house in Auckland and does not think he will ever be able to buy a house.

Why is housing a problem in NZ?

Housing speculation, a lack of affordable housing options, limited protection for tenants, substandard housing, the absence of an overarching Te Tiriti (treaty) and human rights based housing strategy, and a lack of adequate social housing or state subsidised housing are the main causes of the crisis, the report says.

Will Auckland house prices keep rising?

“House prices continue to climb upward in the Auckland region though at a much reduced rate compared to earlier this year, and it’s likely to continue to slow further as new loan-to-value bank restrictions are introduced, reducing the number of buyers in the market.”

Is now a good time to buy a house in NZ?

Is now the best time to buy a house? House prices in NZ are unsurprisingly still increasing, with the national average house price reaching $922,421. This is a record high that’s 24.8\% higher than a year prior. As of June 2021, the average house price in Auckland was $1,283,895.

Why are Auckland house prices so high?

In NZ our low interest rates and eager bank lenders coupled with our culture of house ownership and pretty soon a virtuous circle of increasing house prices fed into increasing economic growth, which fed into increasing house prices.

Why are Auckland houses so expensive?

Capital is attracted to a non-productive (in respect to current housing stock) sector. High levels of household indebtedness constrain spending and/or other investment.