House Prices

[hueybot3000]

https://www.stuff.co.nz/life-style/h...need-1-million

Insanity.
We sold our first house in May 2021 to fund a new build, we did really well and were over the moon at the time. According to Property Values (Core Logic) it's now worth $100k more than we sold it for! And apparently our new build is worth $500k more than it's costing us. That's all great but realistically what does this mean for our country? The first home buyers? My youngest sister is 21 and still has one year of study to complete her degree. How will she ever get on the ladder? My kids are under 5...better start saving for their houses I guess?

[tweak'e]

yeah its insane.
they say the most important thing in money is understanding compounding interest.
what they don't say is the 2nd most important thing is being able to sit on an asset and force the price up, which is what real estate does.
until kiwis are stripped of the ability to make income from buying and selling the family home, there will never be a fix. even a crash will not fix it because you can sit and wait.
a massive change in culture is required and no govt has ever had the balls for that.

[kenj]

Our first house was in Buckland Rd in Mangere East, about 100 metres from our shop. We paid $9,000 for it in February 1969.

Its current value is rated between $1.44M and $1.66M. Effing ridiculous!

Ken

[kenj]

As a follow up, that house of ours went up 73 times its cost.

Wages (average) in 1969 was around $50/wk. Multiply that by 73 and it comes to $3650/wk.

Does not add up does it?

Ken

[zqwerty]

Yeah that's what governments are supposed to for to stop this sort of crap happening.

In the end nobody benefits but a few rip-off artists and the whole economy is being disrupted because of manipulation and greed.

[prefect]

The price of houses is supply and demand and obviously there are people mainly immigrants who can afford to buy them. The government cant do much if stupid people and immigrants pay stupid prices.

[gary67]

About to put our house on the market, rural lifestyle block with 2 bed, 1 bath 2 year old house that I designed and built on the outskirts of a holiday town expecting to get substantially more than it cost us. Then going to sit tight and see what the market does as going on the road as travellers for a while.

[Lawrence]

There may be a price correction mainly relating to the Reserve Bank policy but it depends on a few other things like interest rates ,job security, NZ outlook along with World outlook(growth)

Immigration is the wild card

Pretty uncertain time ATM with covid but one thing for sure is the relaxing of Reserve Bank Policy 6 Months prior to the Election for that Fluffy feel good feeling allowing the sheep to go house hunting

[1101]

No kiwi will ever sell their house for less than they paid for it, so prices will NEVER go down

[prefect]

No kiwi will ever sell their house for less than they paid for it, so prices will NEVER go down

Not so in times past if they have to sell their houses like being divorced, emigrating, new job out of province. The best brains says this years prices may stabilize and drop slightly. As I said if stupid you pay stupid prices for a house you are part of the problem.