An Auckland real estate agent is making the big call that the bottom of the market has passed.
Harcourts North West’s Diego Traglia, who runs a large team of agents and features on the TV show Rich Listers, said the market was on its way back up again.
The latest OneRoof house prices figures show Auckland’s average property value has fallen 3.2% in the last six months to $1.287 million. This new slump followed a brief market revival in the second half of last year, which followed a 19% tumble in property values in the city.
Separate figures from the Real Estate Institute of New Zealand showed house sales in Auckland in June were the lowest for a June month since records began.
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Traglia, however, believes the market has turned a corner. He has seen over the past two weeks a sharp rise in buyer activity, including a return of investors to the market.
He said one investor had told him he was looking to buy 10 properties in the coming weeks. “They thought they might as well put money into property, because we will see a very sharp rise in values over the next two or three years.”
He said he was seeing more buyer activity across a range of prices. “Basically, I’m calling it: we’ve passed the bottom,” Traglia said.
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Included in the deals was the sale of a challenging section in Laingholm. It had been on the market for nine months without serious interest, but then received a multi-offer and sold unconditionally for $212,000 to an Australian buyer wanting to relocate to New Zealand.
A new five-bedroom, three-bedroom Hobsonville property received a two-way multi-offer within a few days of hitting the market.
Another five-bedroom, three-bathroom Hobsonville house, this one on the waterfront and sporting a CV of $1.44m, had been on the market three months but then received a three-way multi-offer at the weekend.
Harcourts agent Diego Traglia: "I think a lot of astute buyers realise it's not going to get much lower than we are now and that's always the start of the cycle." Photo / Fiona Goodall
A West Auckland section was snapped up for $212,000 after sitting on the market unloved for nine months. Photo / Supplied
A Te Atatu South house on an 809sqm freehold site that had been on the market for six months suddenly sold after getting a two-way multi-offer, and in Swanson, a property on the market for three and a half months this week received a multi-offer.
The two-bedroom townhouse had been marketed for enquiries over $730,000 but was now stamped sold with the listing proclaiming: “Sold by Team Diego, need another.”
Traglia said townhouses were still a slow segment of the market but the Swanson property had two people fighting for it.
“I’m seeing a lot of activity I wasn’t seeing two weeks ago. I think a lot of astute buyers realise it’s not going to get much lower than we are now and that’s always the start of the cycle, because if people think it’s a good time to buy it will create competition, which, of course, will drive the price up.”
A five-bedroom on Te Aho Matua Road, Hobsonville, received offers within days of hitting the market. Photo / Supplied
Investors were out in numbers he had not seen for a long time, he said. “I’m not talking 2021 levels, right, but nevertheless a level that we haven’t seen over the last 30 months.”
While the Coalition Government’s changing of the rules in favour of investors was part of it, Traglia said that was only a marginal part of the picture.
“I think it’s really to do with where we are in terms of the cycle. I honestly think astute investors are buying because they think the prices are cheap and, of course, the banks are making it a little bit easier for them as well.”
First-home buyers, who have had a good run in the market despite the high interest rates, would be wise to make their move.
“I think anyone that has purchased in June, July – they’re going to be raving to family and friends for years to come they’ve bought at the bottom of the market.”
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