Now is an opportune time for first-time homebuyers to hop in to the property market while it’s flat.
• The Auckland cycle has peaked & will probably sit flattish w/ small rises for a few years, says BNZ’s chief economist Tony Alexander.
• The flattening is caused by the 40% deposit requirement preventing many investors from buying, and average prices reaching a “new temporary equilibrium”.
• Auckland’s avg. price is down 4%, Christchurch is hit by an oversupply of property (down 3.5%), while Wellington’s price growth has slowed down from 5.8% to 2.5% in 3 months.
• This is an environment in which canny buyers can take advantage of the most panicking vendors seeking to relieve their stress by their unsold property.
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