The latest monthly QV house price index shows Tauranga's residential property values have outstripped the national average by about 10 per cent.
The QV house price index for June shows home values in Tauranga continue to rise rapidly and have increased by 23.65 per cent year on year, and 4.9 per cent over the past three months.
The average value in the city is now just shy of $600,000 at $599.915. Western Bay of Plenty home values also continue to rise rapidly, up by 20.9 per cent since June last year and 5.8 per cent over the past three months, with the average value in the district now $526,756.
Nationwide, residential property values for June have increased 13.5 per cent over the past year. Values rose by 5.6 per cent over the past three months and are now 42.6 per cent above the previous market peak of late 2007.
When adjusted for inflation the nationwide annual increase drops slightly to 13.0 per cent and values are now 21.6 per cent above the 2007 peak. The average value nationwide is now $590,909. The Auckland market has increased 16.1 per cent year on year and 4.7 per cent over the past three months. Values there are now 78.4 per cent higher than the previous peak of 2007.
When adjusted for inflation values rose 15.6 per cent over the past year and are 52.1 per cent above the 2007 peak. The average value in the Auckland region is now $975,087.
18 comments
First timers
Posted on 05-07-2016 12:54 | By Dino
This is purely and simply - GREED - auctions are pushing up the prices unrealistically - houses are not worth this much - people want a house so they have to pay the price - yes I know its competition, but what about those just staring off? they don't stand a chance!! Come on people, someone has to have a brain sooner or later
Dino
Posted on 05-07-2016 13:23 | By maildrop
You fail to grasp it. This is purely and simply economics - demand vs supply in it's purest form. Nothing greedy about it, other than agent fees. Why would someone sell below market price? Unless they were feeling charitable. Auctions don't push up the prices - people bidding do. The market will rise and fall, always has. And property will always be a good bet. There are still plenty of cheap houses to buy for those getting on the ladder but they need to get on at the bottom, not half way up. My first house was a dump, in a bad area, and interest rates were 15%! I had no car, no $50 phone plan, no social life and no $5 lattes every two minutes - choices and sacrifices have to be made so stop whining.
The truth
Posted on 05-07-2016 16:36 | By laugeo
is that current house prices ARE crazy. If you want a proper and relevant analogy - look back to when you purchased your first house and consider how many years gross income it took to buy it? For me it was 3 years joint income and yes there were high interest rates and yes it was very difficult. Now however, I imagine it will take an average couple (starting out) maybe 10 years combined gross income! The truth is, the only people benefitting from these ridiculous prices are Banks, Solicitors and Realty Agents who's greed knows no bounds. What's an agent gouging from a seller of an average property these days - $40k? For what? For the home seller, it matters little what price they get when buying and selling in the same market but they still pat themselves on the back for their perceived capital gain.
Inevitably
Posted on 05-07-2016 16:58 | By laugeo
at some point, the government will decide that the 'only course open to them' is to raise interest rates significantly in order to curb borrowing and spending. At this juncture there will be a marked fall in property values which will leave many new homeowners with negative equity. They in turn will be forced to give up and hand the keys back to the bank and this will lead to further price drops as the supply and demand of property swings the other way. It's ok though, the wealthy will remain relatively unaffected while others less fortunate will carry the emotional and financial burden (some for life!). Couldn't happen? Take a look at England in the early 90's. House values outstripping income increases at the current rate will end in disaster.
It's GREED
Posted on 05-07-2016 20:51 | By FunandGames
Why building products cost 40% more in New Zealand than Australia? Land banking to create a land shortage and drip feeding the land on to the market at high prices. The Govt needs to intervene for the greater good. If the land owners won't realise the land the Councils need the ability forcefully compelle the sale. Same as if the need your land for a road etc. market force only work for those who control the market. Wake up people you are being shafted.
Well said Maildrop
Posted on 05-07-2016 20:53 | By Kenworthlogger
Totally agree with what you have said and could not have said it better than you did. First home buyers dont want to start off down the bottom and instead whine about affordability.
It won't last forever!
Posted on 05-07-2016 21:18 | By monty1212
When you look at the massive national debt and the average wage now and mix that together with the problems in the rest of the world it is obvious that a massive correction will happen and I pity those who have bought at the top of the market as what went up will surely come down!
@funandgames
Posted on 06-07-2016 07:50 | By jed
I agree about building suppliers-they give kickbacks to builders too.Strange that noone has exploited this market opportunity to supply cheaper products.I find the whole situation sad...govt very much to blame too.
Rip Off
Posted on 06-07-2016 08:48 | By peecee09
Real estate agents are the cockroaches of the industry. An agent bought a prospective buyer to our home. They put in an offer we countered , they responded, agreement was signed, all within 3 days.Real estate company billed me $27,000 commission for 3 days work! What a rip off. Bunch of theives.
peece09
Posted on 06-07-2016 09:11 | By whatsinaname
i totally agree. when i bought the house i am in it was listed on monday and I signed a contract on the tuesday. and they charged the seller the full commission.if i ever sell again i will be doing it privately.
Laugeo
Posted on 06-07-2016 10:45 | By maildrop
Don't apply for the Reserve Governor's job anytime soon. The Reserve Bank control interest rates, not the government. The world teeters on the brink of serious deflation. Very bad for everyone - read about the catastrophic effects this will cause. Hence, low interest rates are here to stay for a good while yet. The RBNZ would like to do what you suggest but they simply cannot. And won't. It's a real conundrum for New Zealand and unfortunate (or poor 'management') that the stars have aligned like this - very low supply of housing, poor quality stock, low wages, high immigration, low interest rates, low inflation, land banking, etc,.It's never been easy but to buy your first but sometimes you just gotta suck it up and make sacrifices. If you don't get on the train you go nowhere. Data suggests that prices don't plummet and downturns are short lived.
Peecee09
Posted on 06-07-2016 10:49 | By Old
You are 100% correct. If selling , challenge the agents for lower rate. It's easy. If they not interested,, ring another...dog eat dog in that industry. Agents are laughing at the easy money.
Laugeo
Posted on 06-07-2016 11:07 | By maildrop
Prices in England are over 400% higher than early 1990s - hardly a disaster. Some areas it's well over a 500% increase. The dip after the GFC was relatively small and short lived. Prices are rising fast there too, like in many other countries. We could debate the unfairness of distribution of wealth and how the rich have got richer etc,.and I couldn't disagree or condone that. However, I look at it like this - it's a rat race, the rules are set and you or I cannot change it. It's an out of control cruise ship. Jump on board, get the best berth you can, enjoy the buffet and hope it doesn't sink before you disembark. The end of the world is close.
Maildrop
Posted on 06-07-2016 17:40 | By laugeo
That's funny because the Royal Bank of England used to control interest rates there too - however, when it suited it was THE GOVERNMENT of the day that changed that and instead allowed the chancellor of the exchequer to then make that call. Obviously something similar could never happen here? As for short lived 'dips' - it took 10 years for the market to recover over there and I know because I was there. As for first time buyers having to make sacrifices, this is a no brainer, of course they do, however we are talking about a situation where a huge number could dedicate every cent they earn, eat nothing, spend nothing and still could not afford a starter home and that's why they have my sympathy. It is not a case of them simply giving up their take away coffees!
Maildrop
Posted on 06-07-2016 17:59 | By laugeo
Incidentally, you don't need to qualify for the Reserve Governor's job in order to realise 'how many beans make 5'. You have missed the point - prices being 400% higher than the 90's IS a disaster when the average wage has not kept pace. The 'hard yards' that young couples go through to be home owners (you realise later) is actually a good thing and teaches you a lot about yourselves - I would just like to see a situation return that permits them to experience that. Telling them to "suck it up" when they would love nothing more but simply cannot, is simply ignorant. I will write it more simply - buying a home of any kind is now beyond the reach of more people than it used to be and I am saying that I think that is wrong - nothing more.
Laugeo
Posted on 13-07-2016 17:30 | By Kenworthlogger
Then those people should be buying in places like Te Puke where you can still get houses for under $300,000. Oh i guess its easier to whinge than buy a house in the burbs away from 1st ave
Actual costs
Posted on 19-07-2016 14:02 | By Anbob
The escalating house and build costs are not hard to fathom. Per site 1. Ridiculous real estate commissions on sales, normally $30,000 plus for what is often an afternoon
Maori Land
Posted on 30-07-2016 12:07 | By flyingtoaster
Maori are claiming they are severely affected by the housing crisis. I think iwis should build housing on maori land. It would be wonderful to see some of the maori land actually being utilised. I understand, maori land does not require building consents or rates
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