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Auctions Slow, But Prices Still Going Up

Fewer people may be heading to open homes and auctions, but 56 per cent of real-estate agents say they’re still seeing prices going up, says the latest REINZ survey.

8 October 2021

And 66 per cent say they’re still seeing FOMO – fear of missing out – driving buyers.

The survey run by the Real Estate Institute of New Zealand asked real-estate agents what they’re seeing in their areas now.

The survey wanted to see if the Government’s steps to put the brakes on house prices were working.

The survey was done after March 23 and almost entirely before the Easter break, covering the period since the Government said it was extending the ‘brightline test’ from five to ten years and starting to erode interest benefits for property investors.

(The brightline test says if you buy and then sell within 10 years, you’ll pay tax on your profit.)

Only 11 per cent of the 369 agents who responded to the survey said they’re seeing fewer people turning up at auctions, and some said a few buyers and sellers had pressed pause to wait and see what would happen in the market.

And 23 per cent of residential real-estate agents around the country reported fewer people at open homes.

But agents said they were continuing to see prices on average rising in their location, and they continued to say buyers are displaying FOMO.

Property appraisal requests are one predictor of future activity in the market, as potential buyers check out the value of their homes.

Looking ahead, the survey suggested appraisal requests are still going up, but more slowly than before the measures were announced.

One area that has taken a noticeable hit is the overseas buyer market.

Nearly a third of agents (31 per cent) said they were getting fewer offshore calls. But they say this falling away has been happening since December.

Are you an investor who’s changed your mind about buying a house since the steps were announced? Message us on Facebook and tell us why.


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