Market Updates

96.3% of properties that were resold in New Zealand between 1 October 2018 and 31 December 2018 returned a gross profit. By the time the last quarter of 2018’s property market took its summer hiatus, homeowners had pocketed a total profit across New Zealand of $3.5bn, providing a national median resale profit of $195,000. This was up $10,000 on the previous quarter’s figure and is the highest median resale profit in the history of the CoreLogic Pain & Gain series, which goes back more than 20 years. The CoreLogic Pain and Gain Report is an analysis of homes which were resold over the previous quarter. It compares the most recent sale price to the home’s previous sale price (determining whether the property resold at a gross profit or gross loss). The report provides a proxy for the performance of the housing market and highlights the magnitude of profit or loss the typical seller of a home makes in those regions analysed.

With house prices now falling significantly in Australia, the inevitable question is beginning to arise: “will the downturn spread across to NZ?” We’re not convinced that it will, for three main reasons.