There was more good news for the American housing market in July as sales of previously-owned home rose for the fourth straight month, hitting their highest pace in 2014.
The National Association of Realtors released the figures last week showing sales of existing-homes – which include single-family homes, townhomes, condominiums and co-ops – climbed 2.4 per cent to an annual (seasonally adjusted) pace of 5.15 million in July.
Existing-home sales data is an important barometer of the housing market as it represents most of the homes sold.
There was good news elsewhere in America in July, distressed home sales in the month dropped from the previous July to 9 per cent. The first time they h…
An Auckland property investor has pointed to sky high costs when dealing with the council as a reason why residential development in the city is slowing and prices are rising.
Andrew Bruce, president of the Auckland Property Investors' Association wrote in the New Zealand Herald recently that some building consent fees had risen by 2000 per cent over the past 11 years. He said this was restricting new building work in New Zealand’s biggest city.
“An APIA member who has built numerous minor dwelling units throughout Auckland over the past 13 years has felt the price-pinch.” Mr Bruce wrote.
“Back in 2003 he intimated to me that obtaining a consent for a minor dwelling unit cost $2,000.
“Re…
A leading New Zealand economist is warning that while property might remain a good investment in the near future, a correction is inevitable.
BNZ economist Stephen Toplis commented in the New Zealand Herald last week that property prices compared to rental returns in New Zealand were overdone by around 30 per cent.
“Are they likely to correct anytime soon? No because excess demand still exists and will probably do so for some time.
“But supply will come on stream at an ever accelerating rate over the next few years. Eventually that excess demand will be whittled down and that’s when the correction will come,” he said.
While a bubble may be forming in the NZ real estate market the USA l…
