The market at the moment is hot but somewhat fickle, which is not necessarily a bad combination.
Let me explain what I mean by fickle! About 8 out of 10 houses sell under the hammer at Barfoot and Thompson, which is a fantastic result. This means one or two don’t sell on auction day/night. A house recently didn’t sell on auction day but sold later in the week with several offers resulting in a great selling price.
Most houses are selling extremely quickly with many getting more return than expected. This makes for happy vendors, however on the flip side these conditions are also creating some frustrated purchasers who must find another house to buy. Markets always ebb and flow as supply and demand are constantly changing, supply seems tight in Te Atatu Peninsula and in West Auckland in general.
Lets look at a few stats.
The West Auckland average sale price shows a one month gain of $13,972 or $465 dollars per day. That’s incredible gains but the pace will lessen at some stage as momentum like this may not remain in the long term.
March 2016 West Auckland Suburb Report
Source: Barfoot & Thompson
The interest rate is the cost of money. If I borrow $100,000 @ 5%, the cost to me for the use of that money is about $5,000 per year. Is it any wonder houses are in strong demand when the cost of money is so historically cheap. The graph below is the 5 year interest rate going back to 2002. Money during this time frame has never been lower. I know there are many other factors in determining demand but interest rates in my opinion is a major factor.
Here are some houses that have sold recently with their sale price.
If you have questions, call me, I am a local Te Atatu real estate agent Mark Boyd with Barfoot and Thompson. Licensed under the Real Estate Agents Act 2008. The figures that I have calculated 0n this page are correct to the best of my knowledge.