From a recent article on Interest.co.nz, according to the Real Estate Institute of New Zealand (REINZ), the sale prices in July for Northland, Auckland, Hawke's Bay, Taranaki and Nelson posted significant falls from the previous month.
First home buyers have also been given an extra boost with interest rates now at their lowest following Kiwibank's recent cut, making them market-leading with their 1 year rate at 3.55% and 2 year rate at 3.65%.
The lower quartile price average in Auckland Central has dropped by 17.4%, from $708,000 to $585,000 in July, with 33% of the sales being apartments.
Other significant falls in Auckland were in Papakura, West Auckland and Franklin where prices were averaging at approximately $540,000.
To add to the positive outlook for first home buyers, effective as of Thursday 22nd August 2019, ASB has announced that their interest rate used to determine the loan servicing of the Uncommitted Monthly Income (UMI) calculation will change from 7.70% to 7.20%. This will give a potential near 10% increase in lending power for borrowers.
