Is a ‘permanent home’ in New Zealand now good for under 7 years?

Poised to spark the next round of water-cooling property debate, new data tracking Kiwis’ home buying and selling over the past 14 years has just been released by realestate.co.nz to reveal that the famous “seven years” is almost over.

Across the country, Kiwis now hold their jobs for five and a half years on average.

Is the Kiwi dream of a “permanent home” well and dead?

It certainly has changed a lot.

“People also tell us, ‘This isn’t home forever – it’s home for 10 years.’ Or our five to seven-year-old house,” says Rachel Berry, Auckland real estate agent with Ray White.

“Because one place may be good when your children are small but when they grow up, you need more space, maybe in high school, and then when your children leave, you don’t want to stay.” to be at this great price. “

“So you can look to sell and downsize and split your money between a bach and a townhouse or apartment.”

Vanessa Williams, spokeswoman for realestate.co.nz, agrees.

“People choose to sell for many reasons,” says Williams.

“Whether they’re looking for a place to live, a stylish townhouse, or more space to accommodate a new family member, real estate options are inextricably linked to lifestyle needs and wants.”

Jumping back over five and a half years, the data also shows which regions change the most and where people tend to live longer.

LIST OF

It may come as no surprise that people in the Auckland and Waikato regions sell their homes more frequently than in New Zealand, both averaging five years and three months between sales.

The next is five years and four months with Nelson and the Bays, and the Bay of Plenty; then Coromandel, Canterbury, and Marlborough with five years and five months.

BELOVED

At the other end of the scale, people held onto their land the longest in Taranaki, Palmerston North and the Manawatū/Whanganui areas, which averaged six years and four months, Gisborne, with six years and three months. , West Coast, six years and one month, and Hawke’s Bay, six years.

SO HOW ARE WE SELLING?

In Auckland, it can be a matter of climbing that brutal ladder.

“Maybe it’s the perception that Kiwis have that they’re trying to get more,” says Berry.

“Honestly, my favorite price bracket is the people who are selling up to the next level.”

“A lot of people buy in an area like Māngere Bridge or Avondale or whatever and maybe stay there for a short time before moving to a better place, which might be closer to transport or in a better location. school districts or something like that. Maybe that’s the main driver.”

Growing families are another area to consider.

“There are five factors that drive people to buy and sell real estate,” says Berry, “and I think for us in the industry that we work in, that’s true.”

“So we have young people who don’t have children and then within a few years, their family situation has changed and they’re growing up and they want to do something, and maybe they can have a better job.”

Higher interest rates and higher capital gains may also make Aucklanders’ investment options more affordable.

“People who bought a few years ago, with a higher interest rate than it was then, are looking to make a change and are downsizing, upgrading, moving out of town,” says Berry.

“Maybe 15 to 20% of the land we sell, people have left central Auckland. So they’ve moved north, the Whangaparaoa route or towards the north, or the Coromandel or the South Island.”

“Longer tenures sometimes mean higher returns, but many factors can affect this, including market conditions, economic pressures, regulatory changes, your region, and your personal needs,” says Williams.

“Auckland is an interesting story here. Aucklanders have been very busy, but across the board, they’ve seen the smallest gains over the last five and a half years. [our national average time between resale]. It’s up 13.7% since November 2017,” says Williams.

“Usually, the asking prices are usually higher, so, theoretically, most properties will sell for five or six years later. But it depends on the area how much,” says Williams.

Five years and three months ago, in February 2018, the average asking price in Auckland was $957,005; last month was 12.8% higher at $1,079,055.

BUT THEN WHY DO SOME STAY?

Williams says that smaller towns tend to have less available real estate, and having fewer options can mean homeowners hold on to their properties for longer:

“Limited choice in smaller areas may mean Kiwis have to wait for the right property to be listed, which may explain why it takes longer to sell.”

It may also be that life in these areas, no doubt already a little comfortable, does not leave the inhabitants feeling in a rush so that they can move forward.