It's not a good year so far for buyers and aspiring homeowners in NZ, as the national average asking price for houses in the country reached a new record-high last March, reaching over $805,000. This is a 16% annual increase and is expected to keep increasing in the following months. Unfortunately, according to Trade Me Property sales director Gavin Lloyd, there's no sign of it slowing down any time soon.
Here's the average asking price in the Auckland and Wellington region:
The increase in house prices is connected to the increasing demand for property which doesn't match the current supply. With a 26% year-on-year increase, demand outweighs the supply, which has dropped by 9%. This puts pressure on the market, and if this prevails, buyers can expect the price to keep increasing.
Of course, this is good news for homeowners since they'll be able to sell their houses at a higher price. However, for potential buyers, this means lower chances of finding affordable homes.
On the bright side, Westpac acting chief economist Michael Gordon said that the basis for the asking price might be inaccurate and they're expecting the prices to lower or remain the same for the rest of the year, but this will all depend on how the market is doing at a given time.
With the continuous power bill increase and house pricing increase in NZ, it's essential to manage your finances well to keep up. Here are some tips to consider before buying a house:
If you're currently renting and you plan to move to your own place soon, make sure to set goals first. A drastic big purchase like buying a house can just get you into more financial troubles in the future, so start planning early to avoid making wrong decisions. Figure out where you want to live, how much your budget is, and when you want to buy a house. Will you be able to afford monthly utilities such as electricity, gas, and internet?
If you're unsure where to start, try a mortgage calculator to get an idea of how much your home loan repayments are likely to be if you ever plan to borrow money.
The Kāinga Ora – Home and Communities offers several options such as First Home Loans, tenant homeownership, and KiwiBuild to help you with your home purchase. You may check more details about it here.
Consider joining a KiwiSaver scheme. It's a great way to save money for your future, plus if you've been contributing for at least 3-5 years, you may qualify for a First Home Grant, which can give you up to $5,000 for an existing home or up to $10,0000 to help you purchase a house.
Finding the right KiwiSaver scheme for you is important! Some people don't get the results they want all because they're in the wrong scheme and fund.
If you prefer a newly built home, ASB’s under 2% floating interest is a great mortgage deal for you. Here are important things ...
Make extra money during your free time! Simply subscribe to a fast internet plan and take up online side gigs that match your s...
Glimp were bloody great. I have very recently lost my wife and was dreading changing everything out of her name and resigning and looking for best deals but Glimp made the process so bloody easy. Thank you so much Glimp you guys rock.
Thank you. Very helpful, lots of info and friendly!
Their was no report shown when I was credit checked and I went through the check to many times two days of checking thank you Emil
I found Glimp when I was looking for Internet Providers that I would have to sit through and compare myself. I at first thought Glimp was an Internet provider but then I was pleasantly surprised when they came up as a website solely for comparing all sorts of different things so the customer could find the best deal. I found my new Internet provider on there and even found out I could be with a better Power company then the one I am with now. Very Useful and I recommend Glimp to the bargain hunters!