18-11-2013

BNZ-REINZ Residential Market Survey 14 November 2013

1. News
2. 2013
3. November

The following is a section of the report. To read the full report go to http://tonyalexander.co.nz/wp-content/uploads/2013/11/BNZ-REINZ-Survey-November-20131.pdf

The report reads.......

We asked agents a special question this month regarding the impact they are seeing from the LVR rules to see if there is anything happening which our questions may not have captured. The strongest theme is of course the withdrawal of first home buyers. After that a number of agents noted increased interest from investors while many noted decreased investor interest. A number noted strong and rising demand from offshore buyers, especially out of Asia. Selected comments illustrating themes beyond the obvious are as follows. All responses to the question have been placed in pdf file available here. http://tonyalexander.co.nz/wp-content/uploads/2013/11/BNZ-REINZ-Survey-November-2013-Special-question.pdf

• First home buyers are more diligent in decision making and more parents are tagging along.
• Investors and Chinese buyers (both resident and non-resident) have taken their place, but not buying on emotion like First Home Buyers do - hence we are seeing more of a gap between what sellers want and what buyers will pay.
• 1ST home buyers have decided it too hard to get finance due to what they are reading rather than actually going to bank or broker and investigating. May be a reflection on our buyer's market here for the lower priced entry level homes.
• Massive decrease of first home buyers - parents starting to buy properties in their names to on sell to their children as they cannot get finance.
• It seems more investors are buying the entry level properties instead of first home buyers..
• First home buyers have dried up. Investors are starting to appear now.
• Only affecting first home buyers. Overseas buyers are still in the market and buying at good prices unconditionally. Baby boomers are still downsizing at the same rate and investors have taken up the slack by first home buyers. Not much impact at all.
• Contracts are more condition inclusive i.e. subject to sale of house as Aucklanders protect themselves in case Auckland home does not sell and/or Bank does not honour funding approval.
• Has been implemented to slow the market in Auckland and Christchurch but unfortunately has slowed the Provincial Real Estate market that was only just starting to show signs of recovery from the slump of 2008.
• First home buyers are not able to buy. Our Asian buyers with the buying power from the xx bank are buying up in great quantities especially in our area. I have never personally sold to so many Asian buyers in the last 20 years as I have in the last 12 months.