Economists predict increase in AKL house prices for 2020
Auckland house prices stumbled in 2018 and plateaued in 2019 after years of considerable growth. Now, a number of leading experts are predicting that 2020 will be the year that the market in the region recovers, with steady median price increases forecasted.
That means if you’re planning on buying or building a home in Auckland, now could be the best time: right at the bottom of the market.
Auckland house price rebound forecasted
During the 12 months to October, Auckland’s median house price increased by just 0.8%. During the previous year it decreased by over 3%, according to the Real Estate Institute of New Zealand.
The market could behave very differently in 2020 if the forecasts of leading experts are correct. Back in May 2019, Westpac’s chief economist Dominick Stephens predicted that by 2020, Auckland’s median house price would be increasing by 7% a year. In a recent media release, he explained why:
“Median prices are lifting as a result of a number of influences such as the Official Cash Rate drop back in August, which is slowly injecting more confidence into the market and the continued lack of supply across many parts of the country.”
ASB’s senior economist Mike Jones also predicted a house price increase in 2020, albeit a more modest one of 5 to 6%.
The Auckland property market could be about to perk up.
Auckland property market in 2020 and beyond
Leading property listing site OneRoof recently crunched the numbers to see what Auckland house prices could be by 2040, and what they found was incredible. If prices were to increase at the same average rate that they did between 1999 and 2019, the median price in Auckland could be $3 million by 2040.
You may think that such a high median price is impossible. But keep in mind, that’s probably exactly what Auckland residents in 1999 would have said if you told them that the average house price would increase from $240,000 to roughly $900,000 over the next two decades.
The future’s looking brighter and brighter for homeowners in Auckland. If you’re in the market for a brand new home, now could be the perfect time to make your move – get in touch with the team at Golstruct Homes to get started