New Plymouth Market June 2015
Ergo Mortgages take on what the property market in New Plymouth, Oakura and Bell Block has looked liked during the month of June.
We have seen a decrease in the number of sales for June, with 61 properties sold. This is about 25% less than last month which was sitting at around 80 properties. Comparing 2015 figures with this time last year we are also seeing a decrease of around 15% in sales.
The number of days that properties are staying on the market and taking to sell is on average 48 days which is a lot longer than previous months.
Looking at new listings for June they are similar to this time last year but they are down 35% from May, which is typical for this time of year.
Currently there are 240 properties available for sale which is also a 13% decrease from this time last year.
In summary it appears the market is slowing down, which could be a season trend but also could be influenced by other factors around the Taranaki region; such as the gas & oil industry and the low pay out for dairy farmers.
On a more positive note as of the 1st October the Reserve Bank plan to impose new lending restrictions on property investors, these changes have been designed to slow the rapidly growing market/prices in the Auckland region and we believe it will have a positive flow on effect for other areas in New Zealand and could increase activity in the region.
One effect from this change is the banks have more of an appetite to lend to customers with less than 20% deposit especially in the smaller regions of New Zealand.
So keep in mind those buyers that previously may not off been able to meet the banks criteria, as they may find themselves in a much better position come the 1st October.
Keep up to date with Emma on firstname.lastname@example.org for regular & relevant data & stats.