Good news for first time buyers

[MotherBear]

Residential property 'buyers' market'
12:30PM Wednesday February 13, 2008

Residential property became a "buyers' market" last month with low sales and a sharp increase in days to sell figures, the Real Estate Institute (REINZ) says.

The national median price dropped to $340,000 in January, from $345,000 in December and compared to a peak price of $352,000 in November.

The national median was 3.97 per cent up on the $327,000 figure in January 2007.

REINZ said sales last month were unusually low, even for January which was traditionally a weak month.

The 5186 sales last month were the lowest for a January since 2001, and compared with 7566 in January 2007 and 5597 in December 2007.

New Zealand Mortgage Brokers Association chief executive Megan Salt said there was no doubt that the market is slowing.

More here .

[selchie]

I thought the market might drop, considering it seems to follow the real estate trends on the US (so far as I can tell).

[nickydwuk]

For us yet to land in NZ - lets hope it lasts until September

[duane1x]

We are keeping an eye on it. We will watch for our first year here and build a sense of neighborhoods and what is realistic. One person advised us that there are some properties put on at the "tourist" price, meaning anyone who comes through Nelson Bays on holiday and decides they must have a house might pay a certain premium. You can probably say that about anywhere.

Anyone know a way to look up what a house has sold for, other than ringing up the agent all time?

[MotherBear]

Originally Posted by duane1x

Anyone know a way to look up what a house has sold for, other than ringing up the agent all time?

There are some sites where you can look up property values and what has sold and for how much but mainly you have to pay for the service.

Terranet
QV
RPNZ Reports

I'm sure I've seen a similar service offered on some of the real estate agents' sites.

[molly]

Careful with the property prices. In some areas prices still up and very well sought after!

I think the best property page by far is: Open2view - New Zealand's Real Estate Website

Cheers

[KiwiHopeful]

The small decrease in 'average sale price' is more than made up for rising interest rates:

NZ money markest continue climb | BUSINESS | NEWS | tvnz.co.nz

NZ rates going higher
Feb 21, 2008 11:57 AM

New Zealand money markets continued the upward climb on Wednesday, as credit becomes harder to secure through lack of liquidity.

For investors the news was great as the 90 day rate rose to 8.75%, well above the cash rate. Long term bonds rose another two points.

But for borrowers it was not so great.

Swap rates came back a few points at both ends of the curve, but with a one year swap rate of 8.86% and a 10 year swap rate of 7.81%, there are fewer options for highly leveraged operations.

Such high rates at both ends of the curve are just another signal that high interest rates will be with us for a while longer.

You can find the current rates here: Mortgage interest rates in New Zealand

Play with some of those numbers and you'll find yourself pretty depressed ...
Mortgage repayment calculator | Sorted

[MotherBear]

Property prices falling - latest figures
12:30PM Wednesday March 12, 2008

Anyone watching house prices shoot up over the past decade will hardly be able to believe the latest figures out from the Real Estate Institute.

The last year has seen virtually nil movement in prices - unthinkable in the heady days prior to 2007.

House prices actually fell 0.7 per cent last month from January, and rose slower for the year than the rate of inflation, according to new REINZ figures.

The residential property market had reached a "tipping point", with the percentage annual growth rate on the verge of moving into negative figures, REINZ said publishing the figures today.

They show the national median price easing back from $340,000 in January to $337,500 in February, leaving it just 0.74 per cent ahead of the February 2007 median of $335,000.

More here .

[MotherBear]

Prices tumble as buyers hold out for a bargain
Page 1 of 2 ...... 5:00AM Sunday March 23, 2008
By Rebecca Milne

'Alan Bollard Special - $100K off price". "Price Slashed." "Now Selling Below GV. You Couldn't Rebuild For This Price."

The property market is in a slump and buyers couldn't be in a better bargaining position. The nation's real estate agents are in fire sale mode, with prices dropping by the day.

A Herald on Sunday probe into what's for sale around the country this weekend revealed hundreds of properties advertising themselves below capital value (CV).

Agents confirmed they were talking sellers into cutting prices by up to 30 per cent.

"I had one vendor drop the price on his land by $300,000 [to $1.1 million] recently," says Waiheke agent Howard Gee of Barfoot and Thompson, who is selling a bach on the island for $105,000 under CV. "It's a buyers' market... [sellers] are ringing up and saying drop this [price] and drop that."

More here .

[MotherBear]

No deposit ... no mortgage
5:00AM Wednesday April 09, 2008
By Maria Slade

Home buyers with no deposit wanting 100 per cent finance will now find it extremely difficult, if not impossible, to get a mortgage.

The contracting property market and international credit crunch has prompted mortgage lenders to tighten loan criteria, to the point where those with little or no deposit - or the self-employed who can't show a track record of earnings - may not be able to get finance.

Whereas 18 months ago mainstream banks were competing aggressively with non-bank lenders to gain 100 per cent and 'lo-doc' loan business, now all lenders have stepped back from that end of the market.

Lo-doc loans, where self-employed borrowers complete a reduced set of loan documentation because they have difficulty providing proof of regular income, are a feature of the New Zealand mortgage market because of the many Kiwis who work for themselves.

However, Westpac has just reduced its maximum loan to value (LVR) ratio for a lo-doc loan from 85 per cent to 65 per cent. That means a self-employed borrower wanting to take out a mortgage with Westpac may need at least a 35 per cent house deposit.

More here .