Third wind of strength in the housing market
Investors in the Nelson/Marlborough region saw the greatest gains in housing market momentum in the last quarter, followed by Auckland, Wellington and Southland.
Friday, February 2nd 2007, 2:54PM
by The Landlord
The Mike Pero Mortgages-Infometrics Property Cycle Indicator showed Nelson/Marlborough sitting at +3.78, Wellington at +3.53, Auckland at +3.13, and Southland at +1.28. A PCI value of –10 shows a strong housing market downturn, while +10 shows a strong upturn.The weakest areas were Hawkes Bay (-6.67) and Manawatu/Wanganui (-6.35).
Nationally, the PCI was -2.65 in the December quarter compared with -5.91 in the September quarter, and other factors indicate an upturn in the housing market too.
Mike Pero Mortgages chief executive Jeff Staniland said the company wrote a record $200 million of mortgages written in November and another record for December of $140 million.
The time it took to sell a house in the December quarter was only two days longer than a year earlier, another sign of improving strength in the housing market.
House price inflation bounced above 10% after a weaker result in the September quarter.
Together the signs seem to give credence to the Reserve Bank’s view that the housing market could be gaining a ‘third wind’ momentum.
Rising immigration looks set to sustain the Auckland market’s momentum over the coming six to nine months.
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