Scott Yu - Loan Market - Johnsonville
About Scott Yu - Loan Market
New Zealand house prices have continued their downward trend, with prices falling in most parts of the country in recent months, according to CoreLogic.
The national median house price fell 0.9% over the three months to May, which is the biggest quarterly decline since 2010.
Looking at a more local level, house prices fell in four of the six major cities over the quarter:
- Wellington = down 4.0%
- Hamilton = down 3.8%
- Dunedin = down 2.3%
- Auckland = down 1.8%
- Tauranga = no change
- Christchurch = up 0.5%
Affordability and rate rises are affecting buyer demand
There are two main reasons why prices are going backwards in much of the country.
The first is affordability. Prices can only rise for so long, until buyers stop being able to bid up prices. New Zealand’s median house price is over $1 million, despite the recent declines.
The second main reason is rising interest rates. The official cash rate has increased 1.75 percentage points (to 2%) since October, which has flowed through to higher mortgage rates. That has made it harder for some people to qualify for a mortgage, and has reduced the borrowing power of those who can. Rates are expected to rise further, which will continue to sap demand.
As a result, it looks likely that house prices will fall further in the months ahead.
Prices have almost quadrupled over the past two decades
That said, it’s important to put these recent price declines in context, because house prices have sharply increased since the pandemic. Looking just at the 12 months to May, New Zealand’s median house price jumped 15.3%, according to CoreLogic. That included city-by-city gains of:
- Christchurch = 24.5%
- Tauranga = 21.7%
- Auckland = 16.4%
- Hamilton = 10.0%
- Wellington = 9.1%
- Dunedin = 7.0%
Nobody can say for certain what the future holds, but there’s a good chance that when the market bottoms out, the price gains at the start of the cycle will turn out to have been quite a bit larger than the price falls at the end.
That’s because property prices tend to rise over the long-term. Between December 2003 and May 2022, New Zealand's median house price increased 290%, according to CoreLogic.
If you’d like to refinance to a lower-rate home loan, or you’re wondering how future rate rises might affect your repayments, please get in touch.
Contact Scott Yu - Loan Market
| Address : | Scott Yu - Loan Market 20 Moorefield Road, Johnsonville, Wellington 6037, New Zealand |
| Phone : | 📞 +8797 |
| Postal code : | 6037 |
| Website : | https://www.loanmarket.co.nz/brokers/scott-yu |
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Oliver Ruan on Google
★ ★ ★ ★ ★ Scott and his team are professional and work efficiently. When it comes to buying a home, Scott and his team work hard to provide you with a quality experience by taking away some of the stresses involved in the process. I really appreciated their ability to respond quickly to my queries and provide clear answers.
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Gil'emal on Google
★ ★ ★ ★ ★ I bought my first home in late 2021, and Scott was a great help.
He was professional, timely and patient with all my questions.
Highly recommended.
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tao tao on Google
★ ★ ★ ★ ★ Scott is the BSET broker I ever met. I was new to home buying, and have heard horror stories from friends and family about terrible agents. Scott was professional and reliable all the time! He helped me every step of the way and explained everything in a way that was easy to understand! The best broker I have ever dealt with. Very professional, experienced, reliable and helpful. Highly recommend!!
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Jenny Weiting Chu on Google
★ ★ ★ ★ ★ Scott Yu was exceptionally helpful in the whole process for our house purchase. It was a long journey for us from the beginning to the end as the special condition of the house and stricter lending rules. He used his professional knowledge and experiences to help us getting through every complicated and difficult situation at each stage.
He always efficient in everything he did and provided a great communication and timely response at all times.
He also stands in the position of customer and try his best to ensure customer’s benefits are maximised.
We can’t imagine how we can move in to our new home without his help.
Thank you so much once again. I will be recommending you to anyone looking for a mortgage or having trouble to get a loan.
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Jamie Thompson on Google
★ ★ ★ ★ ★ Scott has truly been a pleasure to deal with. Buying and selling a house is always a stressful time and even more so when you have clients like my family, with all our complications! Scott was calm and accomdating, taking the time to understand our particular situation and provide advice accordingly.
Thank you again Scott, you made the process a success and (relatively) stress free.
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Paulo Renato Rato on Google
★ ★ ★ ★ ★ We recently bought a property and Scott helped us to get our first mortgage.
Scott made the whole process simple and straightforward, and arranged our new mortgage in no time at all.
Scott did a fantastic work guys and we wouldn't hesitate to recommend him.
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Rachel Nixon on Google
★ ★ ★ ★ ★ Scott was super attentive, even through the holiday period, and worked hard with the bank to get us an offer on what is a difficult time for first time buyers. We were pressed for time going into an auction but he managed to get us an offer comfortably within our deadline. He happily talked through any questions we had and put any concerns at ease. We will definitely be using him again in the future. Thanks for all your help Scott!
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Silvana Lacich on Google
★ ★ ★ ★ ★ Scott Yu is simply amazing.
Scott was thorough with his figures, he knew what he was talking about. He kept us in the loop at all times and gave us exceptional and clear advice about our options.
I recommended Scott to my son and his partner for a house loan. Great outcome. They have purchased their first home :)
If you are going to need home loans then look no further than this man: sheer piece of intelligence and hard work."
Silvana and Douglas
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