The real estate market continues to show improved signs for all sectors within property sales on the strength of the continued low Official Cash Rate of 2.5%, steady immigration numbers coming toNew Zealand linked with the recent election that saw the National Party return to government with an increased majority.
Prices have continued to firm, particularly across Auckland where the average sale price has lifted during the past two months and is now $475,000 which is a lift since the beginning of the year of just under 4%. The numbers of sales also across Auckland have remained consistent during the past three months to be just below 2,000 per month and we expect this trend to continue throughout the final months of 2011 and during the first quarter of 2012. What has been of interest is the increasing amount of property that has been marketed by auction, which is at a record high of 26.4%. Across New Zealand the sales numbers have also remained just above 5,000 per month and the average sale price has increased from $340,000 at the beginning of 2011 to $359,000 in October 2011.
It is now forecast that the Official Cash Rate will remain at 2.5% at least until September 2012. This will continue to give confidence to first home buyers and investors and this in turn will keep the market remaining active in the second and third home buyer areas.
The recent capital valuations received by property owners throughout Auckland are a definite reflection of the continued activity that has occurred in certain areas of Auckland and also those properties within the $500,000 to $1 million price bracket.
The outlook for property prices over the next period remains strong; with lower days on market and an active buyer pool this should continue to drive sales across all markets.