All the sales numbers we are currently seeing would indicate a cooling or “normalising” of the very strong property market that we have witnessed the last two years. Is this a factor of the upcoming election on the 23rd September, the impact of the loan-to-value ratio (LVR) put in place by the Reserve Bank in October 2016, the winter blues or a combination of them all?

History tells us that it isn’t unusual to see the property market slow a little in the lead up to an election, which is typically in winter. This year we have probably seen this coincide with LVR’s (Loan to Value Restrictions) beginning to have impact at the same time.

The reality though is that it feels worse than it is. If your memory is anything like most peoples, it is relatively short. We have just come out of a property market that has had incredible strength over the last two years. Things have slowed compared to that, but compared to a normal market we are still travelling nicely.

In fact, according to REINZ data, in July the Bay of Plenty reached a record average asking price of $595,100. We also saw some real growth in the sale of small home market (1 to 2 bedrooms), with the average asking price growing 10% to $424,250.

So despite the perfect storm of things going against the market, we have maintained some real strength. It’s also important to note, that typically, once the election result is known, the uncertainty is removed and we experience a surge in activity.

At EVES we say the “the market is the market” no matter how you look at the numbers, but what’s important to us is helping our clients make good real estate decisions year round. After all, there are always people looking.

And just a quick note for all the Dads out there, happy Father’s Day for this Sunday from us all at EVES.

EVES, more people selling more property.