Property values in the Auckland region declined by 5.9% over the past year (calculated over the three months ending June 2009 in comparison to the same period last year), an improvement on the 7.6% annual decline reported in May. The average sale price for the region increased from $483,397 to $489,444.
More balanced pricing conditions are providing purchasers and vendors with a greater degree of certainty. It is widely accepted that we are unlikely to see any significant capital gain in the short to medium term, so buyers are not pricing this into their offers. Securing finance is key to many deals eventuating and it seems as though prices achieved depend on the ability of parties to negotiate. Job security is still creating uncertainty, so people are not committing to beyond their means.
Taken from my newsletter Talking Property.