Ok, so while Barfoot and Thompson recorded sales pretty much identical for Jan 2011 compared to Jan 2010, the same does not seem to have been the case for the whole of New Zealand.
REINZ figures released via the NZ Herald show 3252 sales this January as opposed to 3,666 in January 2010.
One suspects house sales in Christchurch are somewhat depressed, holding down the nationwide average, but its not something I’ve looked into.
All in all, our suspicions are that the property market will remain in the relative doldrums until people see either (a) capital gains or (b) cashflow positive rental investments. The severe lack of residential construction should, in time, put pressure on prices, and the lack of residential rentals is already putting pressure on rents.
Anecdotally, renovation work is providing a lifeline for many tradespeople as customers feather their nests rather than buying a new one feathered by someone else. On the other hand, we are also seeing people that are now reasonably confident that they can buy and sell on the same market..ie that anything they lose in their sale they can make up by buying at a good price…as long as you are staunch enough in your negotiations.
Next post will be on something specifically legal for a change…the subject of sham trusts. Never more timely a subject than in a double dip recession such as we seem to have had (the last quarter of 2010 definitely felt like a contraction and quite a savage one at that).
How are people getting on with their homes? Looking to rent and unable to find anything? Thinking of selling but just a bit apprehensive of the market? Renovating your home? Would be great to hear from you.