LAST MONTH THE START OF EXPECTED SLOWDOWN IN PROPERTY VALUES
CoreLogic says last month could have been the start of an expected slowdown in property values
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The expected slowdown in property values may already be happening, according to one of Australasia's largest property data and valuation firms.
CoreLogic NZ says Quotable Value's House Price Index for February shows the late resurgence in housing values that occurred in Auckland after the election subsided in February, with a slight fall in average values.
At the same time average values in Wellington tracked sideways after showing sustained growth last year, while Tauranga was the only main centre to show continuing and sustained growth in property values.
CoreLogic's NZ's head of research Nick Goodall says the slowdown in property values expected this year may already be underway, but it doesn't appear that the drop will be very big.
"New Zealand's construction industry faces a major challenge in creating enough affordable stock at the speed required to keep up with our continually strong population growth," Goodall said.
"Net migration hasn't slowed much recently, with figures remaining near all-time highs.
"And of course the kicker is our still low interest rates.
"While banks have tightened their lending standards, low interest rates means borrowing higher sums to secure a desirable property is possible.
"All these things will continue to keep a stable foundation for property values," he said.
However he also warned that the market could be tilting in buyers' favour.
"As with anything, the devil is in the detail and in a changing market with weakening sales volumes, the power can start to shift to buyers as they become less anxious about getting onto the ladder and realise that waiting for the right property can pay off as savings climb faster than house values," he said.
Poll: Have you ever had a scary flight?
A plane flying from Christchurch to Wellington on Sunday had smoke billowing out of the engine and upon landing, passengers had to open the emergency exit and jump out. Have you had any scary flying experiences?
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56.4% Yes!
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43.6% No, it's always been smooth flying
ALEXANDER ROAD SPEED LIMIT
Alexander Road in Trentham-Wallaceville of which 50% separates a golf course from a military encampment enclosure and the rest has mostly high fenced off industrial and residential areas on both sides, should have a 70km speed restriction.
Only a short time ago the road had a 80km restriction and was reduced to a pedestrian 50km much to the frustration of many. It has never been an accident prone stretch of road.
The several round-abouts ensure speed is reduced to 30-40km when these things occur.
I recently stayed a few days in Feilding - often given the title of the best town in NZ - and one of the lengthy main streets has a 70km speed restriction despite a predominance of unfenced residential properties on both sides.
LIVE Q&A: Financial well-being with Cat Rikihana
Today (Wednesday) we're having another Neighbourly Q&A session. This time with Cat Rikihana who is a financial mentor, educator and financial capability practitioner at Financial Freedom Trust in the Manawatū.
Cat Rikihana (Ngai Tahu) like many financial mentors around Aotearoa, works with individuals, groups and whānau to successfully navigate financial stress and hardship. Mentors work alongside whānau to increase confidence and skills in personal money management and advocate with and for clients. Cat enjoys delivering online and face-to-face workshops which provide opportunities to normalise money conversations and encourages people to make time to consider their financial well-being.
Cat is also an independent financial well-being coach, educator and indigenous life coach at Restore Wellness Network. She is a published writer and currently in the process of writing her first non-fiction book: 'A financial self-care guide for women in Aotearoa.'
She'd love to answer any questions you may have around your budgeting and spending habits, strategies for saving, retirement planning and debt. (Don't be shy, but be mindful about what you disclose!)
↓ Share your questions now and Cat will reply to your comment below ↓
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