If attendance, bidding and sales under the hammer are any indication, the residential market is continuing on with a full head of steam. We are enjoying many days with 100% success. If you’re considering selling – it is hard to imagine a better time.

The Cyprus scenario gives further credence to the flight of capital worldwide in search of safe havens for investment. This is yet another factor that will increasingly drive the local property market and further exacerbate the shortage of supply in the Auckland area. We also note with interest some banks reducing mortgage rates this week.

The long spell of unbelievable weather seems appropriate, given the temperature of the residential market. They say it may rain this weekend. Our observation is that a change in the weather will have little effect on heat in the market, which continues to thrive on high interest rates, strong demand and shortage of supply. Consequently, Auckland’s median house prices are up 14.3%.

It will be interesting to see if the talk of the need for more deposit translates into a dampening of the housing market. This is clearly targeted at the lower end of the market.  One thing that will not change is the on going under supply of homes in the favoured parts of Auckland.

Well attended Auctions, crowded open homes and competitive bidding on most properties continue to be the hallmarks of the current market - the other is buyer frustration.  In many cases the ‘arguable’ market value is somewhat less than the money required to actually purchase at Auction.  The demand versus supply factor often driving the premium required for ownership.