My latest video discussing the new average record for NZ house values!
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Michael Anastasiadis – Mortgage Broker Wellington | Mortgage Broker Michael Anastasiadis
FULL Transcript of the Video Here:
Okay, good afternoon, everybody. It’s Michael Anastasiadis here from Bozinoff Mortgages, Mortgage Advisor, mortgages made easy, coming to you live here from a beautiful afternoon here in Wellington.
I just wanted to jump online and just share the news today that we got a new record in New Zealand. The average national house value had a record today of well, in the month of June of $900,000. That’s a new record for New Zealand.
The total New Zealand residential property value as now $1.5 trillion. That’s how much our New Zealand residential properties are worth. That’s a fair bit of money there. Look, it’s a record. We’ll probably hear it, if you haven’t heard already, on the news, you’ll probably hear about it more today. It’s come out from our friends at CoreLogic.
Nick Goodall and the team there have put out that data. It’s another record for New Zealand.
One thing that you’ll also see if they mention this on the news, is that there’s been a slight drop in the values of houses in June compared to May, so they’re slightly down across most of the centers, really, and when I say down, like values are down 1% or less, so probably in the margin of error, especially if you’re selling your house at the moment, with so many people looking to buy, someone at the top end’s going to pay over that anyway, so it’s really negligible.
But for those people out there that look at this and will say, “Aha, look, house prices are going down.” Yeah. I don’t think something under 1% really, really counts, so we’ll need to see many more months of that happening.
For those of you that follow me and watch my videos, you know I’ve been going to open homes now… Well, I haven’t really stopped going, and I’m still seeing a lot of first home buyers at open homes, right?
There’s a lot of people looking to buy property, which shows that demand is still high, and as we all know, the supply is low because there’s not enough stock out there. What does that mean? It means prices are still going to stay high.
Yes, they are starting to drop, but there’s other factors at play here as well, right?
If I look at Wellington, the average house price in Wellington as now $1,024,649. That’s a massive average house price.
Now, what people forget is that people that want to buy a house need to get a loan and to get a loan that high, income needs to be very high as well. So the banks are doing their servicing.
Debt-to-income ratios aren’t in officially yet, but the banks do do their servicing criteria. Is there enough income to be able to service the loan? And I’ve done a video previously on that, so you can search that once I finished here.
Look, traditionally, despite the beautiful day here, this is the quietest time of the year as we head into the July school holidays. Usually real estate agents are overseas.
People are on skiing holidays or taking time at home with the kids trying to have a mid winter break, so the market is flat. It’s really after the July school holidays and as we head into spring, that we start to see more and more listings come on. As more and more listings come on, there’ll be more and more buyers out there, and I’m sure eventually the investors will get it back out there as well. It’s not all doom and gloom for this record residential housing market in the country.
Just wanted to jump online and share this update with you all. Hope you’re having a great day. Hopefully this was useful. If you like getting these videos, please press that like button and press that share button, because it just helps to put out this good content out there during these times of uncertainty and other misinformation that’s out there, so it’s really useful.
And of course, if you know anyone that’s looking to get pre-approval or wanting to run their numbers past me, always happy to have a chat.
The criteria is still pretty much the same. You’ve got to be New Zealand citizens, permanent residents. You’ve got to have a minimum 10% deposit. In Wellington now, that means what, a 10% deposit, so you’re looking at a minimum what 102 and $103,000 deposit, and then you’ve got to have enough income to pay that $900,000 loan.
So you are talking of a combined income of in excess of 170, maybe 180,000. So 90,000 for each of the applicants on the loan. It is tough guys. It is tough. And that’s why prices have plateaued and they’ll stay plateaued for a while, because until we get some proper wage salary hikes in this country, it’ll be awhile before prices take off again. And it’ll either be that, or when the borders open up.
Anyway guys, signing off. Have a great afternoon.
God bless you all, and please do me that favor, press that like, press that share button, and should be coming to you from Tawa this weekend from a open home there for some first home buyers. It’s a great property for first home buyers, so we’ll see you live again on Sunday. Cheers guys.