House sellers and estate agents will breathe a sigh of relief after Saturday’s election, which is expected to end a property market lull caused by hesitant buyers sitting back to see how the politics play out.
A general feeling of uncertainty, talk of a capital gains tax and proposed warrant of fitness schemes for rental housing – alongside loan-to-value ratio restrictions on mortgages and the usual winter hiatus – are behind the quiet spell, industry experts say.
Real Estate Institute figures for last month show dwelling sales dropped 7 per cent from the previous month.
The latest monthly QV Residential Price Movement Index shows a continued reduction in transactions and low listings in the Auckland region.
Real Estate Institute chief executive Helen O’Sullivan said the election had played a part in the drop-off.
Every three years, the pace of sales slumped in the 12 weeks before a general election, said Bayleys Real Estate managing director Mike Bayley.
“It will be several weeks before the residential property market is again comfortable,” he said.
“That timeframe coincides perfectly with the arrival of spring and the usual uplift in not only temperatures, but also more properties coming on to the market as vendors become motivated to settle on a sale before Christmas.”
More homes should come on the market in November, Mr Bayley said.
Labour and the Greens have promised to introduce a capital gains tax if they gain power. Several parties have also talked about introducing a warrant of fitness scheme for rental housing.
But Ms O’Sullivan didn’t think any specific policy was affecting the market – rather, it was people “sitting back to wait and see as the world might be different next week”.
“There’s uncertainty about all sorts of things,” she said.
Written by: Kurt Bayer
Sourced from: The New Zealand Hearld Website
Kurt Bayer is an APNZ reporter based in Christchurch