Marks View of the Auckland Market

Marks View of the Auckland Market
01-Oct-2015 Mark Honeybone

Everyone has different views of the market right now, but one thing in common is that everyone agrees that the last few weeks have been a little quieter. Many agents complaining that there are less numbers at open homes and Auctions have gone quiet.

Well in my opinion this had to happen, at times the market needs a breather, it happened around the time of the last elections and it may happen now for at least a short time, but don't be fooled, in my opinion and others, I don't think it's over for capital gains.

Logically looking at it, the market was reasonably hot until about the time the Government announced the new LVR Rules for Auckland about 4 months ago, at that point the market went electric (way to hot to be comfortable), so to me, logic would say when those rules actually come in (about now), the market would go back to the same level it was previously.

Then take out of the market some of the newer investors (that can't afford the 30% deposits) and the market should cool further.

And then take the uncertainty of Overseas investors about the new rules that affect them, then YES, the market has gone a little quiet.

What does that mean?

Opportunity!

So now is a great time to start using your negotiation skills again, vendors will run a little scared, property not selling at Auction all creates great opportunity for the shrewd investor.

Take advantage of this moment in the market, it doesn't happen a lot during a cycle.

Will the Auckland market pick up again?

I'm no expert, but in my opinion there are still so many factors why its not over just yet, in saying that be cautious and buy well.  Here are some reasons:

At the end of the day these are only my opinions based on what I see in the market right now, and other experts in the field that I talk to every day.

Carpe Diem, seize the moment!

Mark