Northland Property Investors' Association

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15-06-2008

The boom has turned to bust

NZHERALD

The property downturn is not a blip and Auckland's top suburbs are suffering, with the desirable suburbs of Kohimarama, Greenlane, Westmere, Point Chevalier and Epsom declining more than any other.

The best-performing suburbs in Auckland are Ellerslie, Mt Wellington, St Johns, Otahuhu and Waiheke Island, according to information released to the Herald on Sunday.

But sales are so low across the board that it is inaccurate to judge trends by median sale prices. Some suburbs had fewer than 10 sales in the past quarter.

The Quotable Value analysis uses three levels to read data - median sales price, average sales price and the number of sales from the end of the past quarter until now.

Kohimarama median and average sales prices have fallen by more than $300,000 and Epsom prices have fallen by more than $100,000. Greenlane prices have declined by more than $150,000 and Pt Chevalier prices have decreased by about $100,000.

But the Kohimarama and Epsom declines in average and median sales prices reflect cheaper properties selling rather than a major fall in value, says QV's Jonno Ingerson.

The downturn is also hitting provincial areas across the North Island and the property market has already gone backwards in Gisborne, New Plymouth and Palmerston North. Other towns are expected to follow.

Property investor Kieran Trass, of suburbwatch.co.nz, says the real estate industry needs to stop waving around the median house-price figures and accept the market is crashing.

Trass says that emotional buyers - those who pay a high price for their dream home or to live in a desirable area - have been holding up the market until now.

An increasing number of homeowners will suffer negative equity by the end of the year and not as a result of people "talking down the market".

He says the statistics that show average property sales are not falling in value are flawed and they are convincing homeowners or prospective buyers to make devastating decisions. He has lost $1 million in equity on his own portfolio in a year.

"If you bought a property a year ago and put in a 20 per cent deposit I'm convinced you've lost it," he says.

Trass says Mt Roskill is suffering, based on the data that's coming out in suburbwatch.

In the first three months of this year, values there dropped by more than 6 per cent - meaning a $400,000 property would have dropped by $25,000 in three months.

"That's a lot of money and a lot of value disappearing, and that trend doesn't look like it's going to change in a hurry. It's just a matter of time as it filters through the

The downturn is also hitting provincial areas across the North Island and the property market has already gone backwards in Gisborne, New Plymouth and Palmerston North. Other towns are expected to follow.

Property investor Kieran Trass, of suburbwatch.co.nz, says the real estate industry needs to stop waving around the median house-price figures and accept the market is crashing.

Trass says that emotional buyers - those who pay a high price for their dream home or to live in a desirable area - have been holding up the market until now.

An increasing number of homeowners will suffer negative equity by the end of the year and not as a result of people "talking down the market".

He says the statistics that show average property sales are not falling in value are flawed and they are convincing homeowners or prospective buyers to make devastating decisions. He has lost $1 million in equity on his own portfolio in a year.

"If you bought a property a year ago and put in a 20 per cent deposit I'm convinced you've lost it," he says.

Trass says Mt Roskill is suffering, based on the data that's coming out in suburbwatch.

In the first three months of this year, values there dropped by more than 6 per cent - meaning a $400,000 property would have dropped by $25,000 in three months.

"That's a lot of money and a lot of value disappearing, and that trend doesn't look like it's going to change in a hurry. It's just a matter of time as it filters through the 

The downturn is also hitting provincial areas across the North Island and the property market has already gone backwards in Gisborne, New Plymouth and Palmerston North. Other towns are expected to follow.

Property investor Kieran Trass, of suburbwatch.co.nz, says the real estate industry needs to stop waving around the median house-price figures and accept the market is crashing.

Trass says that emotional buyers - those who pay a high price for their dream home or to live in a desirable area - have been holding up the market until now.

An increasing number of homeowners will suffer negative equity by the end of the year and not as a result of people "talking down the market".

He says the statistics that show average property sales are not falling in value are flawed and they are convincing homeowners or prospective buyers to make devastating decisions. He has lost $1 million in equity on his own portfolio in a year.

"If you bought a property a year ago and put in a 20 per cent deposit I'm convinced you've lost it," he says.

Trass says Mt Roskill is suffering, based on the data that's coming out in suburbwatch.

In the first three months of this year, values there dropped by more than 6 per cent - meaning a $400,000 property would have dropped by $25,000 in three months.

"That's a lot of money and a lot of value disappearing, and that trend doesn't look like it's going to change in a hurry. It's just a matter of time as it filters through the  

The downturn is also hitting provincial areas across the North Island and the property market has already gone backwards in Gisborne, New Plymouth and Palmerston North. Other towns are expected to follow.

Property investor Kieran Trass, of suburbwatch.co.nz, says the real estate industry needs to stop waving around the median house-price figures and accept the market is crashing.

Trass says that emotional buyers - those who pay a high price for their dream home or to live in a desirable area - have been holding up the market until now.

An increasing number of homeowners will suffer negative equity by the end of the year and not as a result of people "talking down the market".

He says the statistics that show average property sales are not falling in value are flawed and they are convincing homeowners or prospective buyers to make devastating decisions. He has lost $1 million in equity on his own portfolio in a year.

"If you bought a property a year ago and put in a 20 per cent deposit I'm convinced you've lost it," he says.

Trass says Mt Roskill is suffering, based on the data that's coming out in suburbwatch.

In the first three months of this year, values there dropped by more than 6 per cent - meaning a $400,000 property would have dropped by $25,000 in three months.

"That's a lot of money and a lot of value disappearing, and that trend doesn't look like it's going to change in a hurry. It's just a matter of time as it filters through the

The downturn is also hitting provincial areas across the North Island and the property market has already gone backwards in Gisborne, New Plymouth and Palmerston North. Other towns are expected to follow.

Property investor Kieran Trass, of suburbwatch.co.nz, says the real estate industry needs to stop waving around the median house-price figures and accept the market is crashing.

Trass says that emotional buyers - those who pay a high price for their dream home or to live in a desirable area - have been holding up the market until now.

An increasing number of homeowners will suffer negative equity by the end of the year and not as a result of people "talking down the market".

He says the statistics that show average property sales are not falling in value are flawed and they are convincing homeowners or prospective buyers to make devastating decisions. He has lost $1 million in equity on his own portfolio in a year.

"If you bought a property a year ago and put in a 20 per cent deposit I'm convinced you've lost it," he says.

Trass says Mt Roskill is suffering, based on the data that's coming out in suburbwatch.

In the first three months of this year, values there dropped by more than 6 per cent - meaning a $400,000 property would have dropped by $25,000 in three months.

"That's a lot of money and a lot of value disappearing, and that trend doesn't look like it's going to change in a hurry. It's just a matter of time as it filters through the

The downturn is also hitting provincial areas across the North Island and the property market has already gone backwards in Gisborne, New Plymouth and Palmerston North. Other towns are expected to follow.

Property investor Kieran Trass, of suburbwatch.co.nz, says the real estate industry needs to stop waving around the median house-price figures and accept the market is crashing.

Trass says that emotional buyers - those who pay a high price for their dream home or to live in a desirable area - have been holding up the market until now.

An increasing number of homeowners will suffer negative equity by the end of the year and not as a result of people "talking down the market".

He says the statistics that show average property sales are not falling in value are flawed and they are convincing homeowners or prospective buyers to make devastating decisions. He has lost $1 million in equity on his own portfolio in a year.

"If you bought a property a year ago and put in a 20 per cent deposit I'm convinced you've lost it," he says.

Trass says Mt Roskill is suffering, based on the data that's coming out in suburbwatch.

In the first three months of this year, values there dropped by more than 6 per cent - meaning a $400,000 property would have dropped by $25,000 in three months.

"That's a lot of money and a lot of value disappearing, and that trend doesn't look like it's going to change in a hurry. It's just a matter of time as it filters through the market."

Trass says people need to come to terms with the fact that property is more unaffordable than it has ever been before and the market needs to go through a correction.

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