Exciting times ahead
It seems a while since I last looked at the sales stats in Upper Hutt so for those of you curious to see what’s happening, I hope this helps.
As I’ve previously said we will have considerably fewer sales in 2017 compared with last year's total of 976 residential dwellings. This is simply down the Loan Value Restrictions (LVR) placed on the bank by the Reserve Bank Governor. Simply put the banks aren’t lending as much and require buyers to have a much larger deposit.
What this means is that to the end of April there have been 268 sales compared with 354 in 2016 a drop of 86 sales. Still, it’s better than the 238 of 2015. In theory this is the kind of market where prices drop but prices are stable as there are historically low level of listings and people are reluctant to sell as they are aware that they may not be able to find another home.
As agents we are hearing that the LVR will be relaxed and the banks may start lending again to buyers with a 10% deposit but that’s not the case at the moment. If we look back to 2013/14 when the first LVRs were imposed we didn’t see a relaxation until October 2014. This year, that will be straight after the election.
My thoughts are that the market will remain stable until then and accelerate after that.
The forecast for the next 3 years is a net gain on migration of 70,000 people per annum. Well, they are going to need somewhere to live……….
If you are thinking of selling your home, would like an appraisal, or want more information on the Upper Hutt property market please call me on the numbers below or contact me via email firstname.lastname@example.org alternately fill in your details here on my website.
(04) 212 6787
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