Welcome to spring. Temperatures are just starting to creep up, Labour weekend is approaching which is always a sign that it is time for planting the vege garden, of course what happens, within days of planting etc a late frost hits!!!

What is happening in the local market, sales volume for September 2018 was a low 28. For the same month last year 39. So, sales volume is still very low, to put into perspective for all of New Zealand for September 2018 there were 5,506 so we recorded .5% of the NZ total. The number of days to sell were 42 for September 2018, for September 2017 an average of 50 days. The medium sale price September 2018 $1,007,200 for September 2017 $986,000. The local market still seems to be very much driven by supply and demand and it is that factor that is holding up values at present.

It will be very interesting to see the impact of the Overseas Investment Amendment Act. In essence if you are a citizen of New Zealand, Australia or Singapore then you are classified as a resident. Outside of this if you hold a New Zealand residency Visa and have lived in New Zealand for 183 days in the last 12 months then you are classified as a resident. If you have not resided in New Zealand for 183 days you are classified as non-resident with major restrictions in place for purchasing property. In a location like Queenstown this could potentially have a big impact on the real estate market.

Whilst it would be fair to say that banks have tightened the reins in the lending market place; this is more related to restrictions like the LVR handbrake being applied by Reserve Bank and nervousness regarding the outcome for the Australian Royal commission of Enquiry into Banking and potential flow on effects to New Zealand. Having said that when lending proposals meet all the big ticks we are seeing some pretty aggressive pricing being offered by the Banks. So, if you are looking at topping up for those spring renovations or you have a fixed interest rate coming due, don’t hesitate to contact us to review.

Until next month enjoy spring, longer sunshine hours following daylight saving and roll on summer.

Cheers

Charlie & Michelle