Comments on: North Wellington House Market Price Update – 25th Nov 2009 http://unconditional.co.nz/northwellington/2009/11/25/north-wellington-market-update-25th-nov-2009/ News and views from New Zealand's Harbour Capital Thu, 01 Nov 2012 23:42:19 +0000 hourly 1 http://wordpress.org/?v=3.4.1 By: David Garratt http://unconditional.co.nz/northwellington/2009/11/25/north-wellington-market-update-25th-nov-2009/comment-page-1/#comment-77 David Garratt Wed, 25 Nov 2009 19:21:40 +0000 http://www.unconditional.co.nz/northwellington/?p=163#comment-77 I agree - this is a really interesting phenomenon. Most banks allow mortgage holders to transfer debt from one house to another especially if the debt holders are adding more debt, so am not sure that the fixed rate theory is the best answer to your question. I think that there is always an info lag between the buying and selling market. Most Potential Sellers are not active in the market until they come to sell. Sellers don't know that it is a good time to sell until they hear it via the media. And the media is always behind the market. The market stats are about a month behind the activity at the coalface for a start by the time they are tabulated and released. I also think that there is still wariness in the market place that is creating inertia in sellers minds. The status quo is always the easiest and default option. If you are unsure about whether to sell or not, you don't sell, making the choice by default. Add to this some migration increases, placing more demand on available homes for sale or rent, and a building industry that has cut back majorly in new building activity, and you have a recipe for a house shortage. I agree – this is a really interesting phenomenon. Most banks allow mortgage holders to transfer debt from one house to another especially if the debt holders are adding more debt, so am not sure that the fixed rate theory is the best answer to your question.
I think that there is always an info lag between the buying and selling market. Most Potential Sellers are not active in the market until they come to sell.
Sellers don’t know that it is a good time to sell until they hear it via the media. And the media is always behind the market. The market stats are about a month behind the activity at the coalface for a start by the time they are tabulated and released.

I also think that there is still wariness in the market place that is creating inertia in sellers minds. The status quo is always the easiest and default option. If you are unsure about whether to sell or not, you don’t sell, making the choice by default.

Add to this some migration increases, placing more demand on available homes for sale or rent, and a building industry that has cut back majorly in new building activity, and you have a recipe for a house shortage.

]]> By: Lara Jones http://unconditional.co.nz/northwellington/2009/11/25/north-wellington-market-update-25th-nov-2009/comment-page-1/#comment-76 Lara Jones Wed, 25 Nov 2009 18:16:11 +0000 http://www.unconditional.co.nz/northwellington/?p=163#comment-76 Thanks for this report - very comprehensive and interesting. Why do you think that simultaneously throughout NZ that there has not been a spring listings surge? My theory is that a huge number of people refixed their mortgages for 5 years at 5.99% in February and are happy to stay put on that low rate? Thanks for this report – very comprehensive and interesting.

Why do you think that simultaneously throughout NZ that there has not been a spring listings surge?

My theory is that a huge number of people refixed their mortgages for 5 years at 5.99% in February and are happy to stay put on that low rate?

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