Property Growth Expected 2020

Property Growth Expected 202023 Oct 2019

Buyers beware: House price rises tipped to hit 7 per cent in coming year

“The Auckland property market turned in September helping drive a national month-on-month rise in home prices of 1.4 per cent, but greater price rises could be on the horizon”
Westpac's economists are tipping house price growth to accelerate next year and believe home prices could rise 7 per cent in 2020.
The median price paid for an Auckland home in September was $848,000 and homebuyers faced a record national median house price of $597,000 at the end of September, up from $560,000 at the end of September last year.
Dominick Stephens, chief economist at Westpac, predicted the coming year would see house prices accelerate away.
"We predicted (in May) that the housing market would gradually pick up, and that annual house price inflation would accelerate to 7 per cent over 2020. We predicted that the turnaround would be most noticeable in Christchurch and Auckland, which at the time were the weakest housing markets." That would make it harder for people who needed to save their own deposits, rather than being gifted it by relatives, to get into properties, he predicted.
"This rise was the result of an uplift in the percentage of properties sold between the $750,000-$999,999 mark and the 6.3 per cent rise in median prices in Waitakere City – the only territorial authority in Auckland to see a median price increase during September,"
It is said the housing market will continue to strengthen heading into next year, and we expect aggregated price gains to pick up towards 5-6 per cent year-on-year in 2020.
"This is expected to be driven by modest rises in Auckland, following over three years of either flat or falling prices. Meanwhile, the regions that have experienced significant house price appreciation in recent years are likely to see gains slow as the current rally in prices runs out of steam."
Atlas Property have 3 different boutique developments coming to Auckland from under $650,000 which is below the medium price in Auckland, if you are interested in these upcoming developments, please email [email protected] for more information.
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