It’s a New Year. Time flies.
It’s very important to look ahead to 2019. With all the upcoming changes to legislation relevant to the property market (covered in the last omnibus residential report for the Eastern Suburbs), and the always-looming economic tailwinds, it will be interesting to see how the property market performs.
Undeniably, whilst 2018 has not been a great year for property owners, you should remember that the past 5 years or so have been fantastic. Home prices in the Auckland central region have been up a massive 8.3% each year on a compounded basis, proving by far and large a fantastic return on investment (especially when you consider that many homeowners are leveraged via their mortgages). As such, the current market simply means is that the frenetic pace of price increases in the Auckland real estate market have slowed. This will lead to a more stable, and ultimately more resilient, property market in the long run.
But just remember: if you only own one property for owner-occupation, you are almost always buying and selling in the same market. This means that when you sell high, you will also be buying high (relative to historical house prices even if you are downsizing).
Let’s dive straight into the December sales and reflect on how the year has gone for the popular Eastern Suburbs of Remuera, Kohimarama, Orakei, Mission Bay, Glendowie, St Heliers, Wai O Taiki Bay, Stonefields, St Johns and Meadowbank.