What a month October 2008 was. Share market volatility indexes going sky high to there highest since 1990. And the amount of money evaporated from the worlds share markets in one month, wow.
Well I thought I would do a little research going back over the last 6 months. Amidst an environment of papers, radio & TV Current affairs programmes champing at the bit to get statements like “Property prices to plunge” out.
The fact still remains as I have said before property is all about supply & demand. Recently I learnt that another NZ market region had 300 apartments for sale out of a base of 1000 properties (on average) on the market at any one time. In that market the monthly sales rate is less than 5%.
As the chart shows its the under $300k first home owner / investor zone that is being impacted currently, followed closely by the sub $400k category. Although mixed for the other price bands Nelson’s still holding the middle ground as indicated by the dotted line.
The left column uses the scale that 1.00 = published CV Value.
October 2008 figures, due from the REINZ any day soon will surely show that purchasing Real Estate was not Kiwi’s favourite pastime this past month.
However amongst all the non-positive information on property this chart shows what is happening in Nelson over the last 6 months, based on REINZ data. Certainly our volumes are down.
– nesteggs knocked for six by Finance Companies belly-flopping
– capital gains aren’t what they used to be or perceived to be going forward
– finance companies / banks saying goodbye to 100% “low doc” loans
– world events in the last few months + upcoming elections
– interest rate jitters
…have all had an effect on individuals but it is still clear from the chart that Nelson is holding up well, as it always has.
NB: Data used for above chart is based on unconditional sales dates from last 6 mths.
Love to know your thoughts on this, and if charts of your region would look similiar?