Slow start to first quarter

Despite a strong finish in residential house sales in 2009, the first quarter’s activity for 2010 shows a weakening property market, with fewer sales and a slight drop in median house sale prices in Gisborne. Just when there was signs of a strengthening recovery, there are now signs of easing confidence.

Prices however are steady. There does not seem to be any significant drop in market values from 2009. The monthly median house sale price for Gisborne has fluctuated over the quarter, more as a result of what price bracket is selling stronger in a give month, than a rapid rise and fall in property values.

Investors, who tend to buy in the lower end of the market have been slow to buy. This is having an affect on the values of low end properties, as demand eases and supply is plentiful. The pending tax law changes to investment property is impacting on buyers’ decisions. So too is the air of general caution that many people are expressing. Once the law changes are confirmed in May, we may see confidence returning to the investment sector.

At the top end of the market we are seeing movement, but properties need to be competitively priced in order to sell.

When the economy slows and business profits are down, many folk put their moving plans on hold. However, regardless of the economic situation, there are always those who chose to buy and sell. It’s important to remember that as long as you are buying and selling in the same market, the perceived loses at one end can be recovered at the other.

Right now, this is the time that astute buyers can make money and grow their wealth. Real estate goes in cycles and prices will rise in the future. Those who are buying now will benefit later on. Today’s investments grow tomorrow’s wealth.

house sales and medians for Gisborne