Property info thread - ctd.....

[MotherBear]

Buyers in line for good deals as market booms
5:00AM Sunday December 09, 2007
By David Fisher

A mini-boom is about to hit the property market, giving buyers a chance to bag bargains and make money as the market corrects.

That's the advice from Martin Evans, president of the New Zealand Property Investors Federation.

And, according to test-cricketer-turned-mortgage-broker Adam Parore, more deals are likely to come on to the market as homeowners, who have enjoyed low fixed rates for years, have to contend with the current high interest rates.

The Herald on Sunday's search of Trade Me's property website found dozens of properties already going below valuation.

Evans said: "The values have dropped and people are becoming more realistic. The cycle has gone over the top and is on its way back down again."

More here .

[KiwiHopeful]

I saw a similar story on TV One news tonight. It cited several examples of houses selling below their valuation. The problem was, though, that it gave the discounts as absolute dollar figures, rather than as a percentage. Lacking a context, it doesn't really matter if a house sells for $20K less than its valuation.

Furthermore, it would take a hefty discount to cut into the average 75% appreciation that the housing market has seen in the past 5 years.