New Zealand’s house prices are punching above their weight on the world stage, with growth here last year outpacing Australia, Britain, Canada and the US. With the heat on in our major cities, buyers are now turning their attention to more affordable places like Kapiti.
The Economist Magazine recently reported that local house prices in New Zealand have climbed 13 percent in the past year, however growth in Kapiti topped that with a 22.7 percent jump in prices between January 2016 and January 2017. Even despite the higher cost, more people are still taking out mortgages with an additional 40,500 loans made between 2015 and 2016.
These are a lot of big figures to throw around, so what does it really mean for Kapiti? We are still seen as an affordable place to buy, but house prices are set to grow further when the next phase of the M2PP Expressway and Transmission Gully are finished.
Specific local factors, alongside higher migration rates, a steady economy, still low interest rates and fairly lenient lending criteria have driven growth. It’s encouraged people to leverage their increased equity to buy rental properties, upgrade their own home or start a business.
Though interest rates have been increasing and credit criteria is starting to get tougher, especially when it comes to borrowing power.
It’s possible prices will start to flatten with a slower rate of growth over coming months so buyers should carefully consider their tactics - including living within their means, making wise financial decisions (not stretching budgets too far) and considering life-changing events like starting a family.
One thing we know for sure is that Kapiti is a desirable place to live, so if you are ready to make your next property move talk to a mortgage adviser to put you and your family in prime position.
Contact us 7 days a week.