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.
Getting into KiwiSaver is one of the best ways to save money for your future. 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 $10,000 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.
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