Raine & Horne Kumeu - Hobsonville Blog

North West Auckland Property Oversupply

House stock on market up 12% Nationally but due to the explosion of townhouse stock in North West Auckland many analysts indicate that this figure is likely to be double this figure.

We are seeing several signals:

• Increase in homes for sale due to migration to Australia
• An increase in townhouses on market due to building completion
• An increase in townhouses for rent due to soft sales market
• A small increase in mortgagee sales

There are further signs the housing market is heading into winter with a large oversupply of unsold homes remaining in the market overlayed by new stock. This also reduces the confidence of buyers thinking there is something better around the corner. 

We've seen a continuing imbalance between supply and demand through this year, with more homes available than demand, suppressing any prospect of price gains. 

The market historically self-corrects over time however this has other consequences:

• Some homes come off market ( a loss in marketing funds)
• Some homes go into the rental pool (boosting supply and softening rental yield)
• Some home stay on the market oscillate between price point, by Neg and Deadline sale. 

In many cases the Owner pays a heavy price of reduced asset value, a marketing spend, and the real prospect of a reduced rental income. 

On the flip side, the Official Cash Rate has been reduced, and the suggestion is that it will continue to fall, with the main banks pitching two year fixed term mortgage rates in the 4% range. 

In my reflection of what happened after the Global Financial Crisis the housing market was slow until banks reached the 3% threshold and at that time investors became more engaged and first home buyers cried foul. What First Home Buyers need to understand is they need to act before the Investor tipping point. I recall the media coverage and the phone calls from First Home Buyers at this time feeling that the investors had grabbed all the low price homes. What in fact happened was that First Home Buyers took too long to decide to buy, let's hope history doesn’t repeat. 

Recently I was privileged to talk with Mike Harvey from the Ignite Podcast and suggest if you would like a very transparent view of the property market and all things REal Estate go to your favourite podcast site, look up ignite and listen in. 

If you are looking to achieve a great result for the sale of your property, please contact me today for a free pre-sale property checklist and appraisal that will provide a starting point in your decision-making. Over 2 decades working with buyers and sellers, I have a depth of knowledge and experience to share with you. No cost, no obligation, just some honest feedback. Call me, Graham McIntyre AREINZ directly 0800 900 700, via text at 027 632 0421, or through email at [email protected]. 

Country Living Realty Ltd t/a Raine & Horne Kumeu-Hobsonville Licensed REAA (2008)