Auckland's residential market is showing all the signs of having recovered from its downturn last year. Sales numbers for the first three-quarters of this year have been above the previous year's.
Many analysts foresaw a recovery during the last part of 1998 given a favourable environment of improved consumer and business confidence and historically low mortgage rates.
Despite the positive factors and the relatively bright outlook, the market is only just recovering to the levels it saw in 1997 and there are some potential negative factors looming. There was a recent rise in fixed mortgage rates fuelled by indications from the Reserve Bank that monetary conditions might need tightening.
Business and consumer confidence both remain positive, but they are not quite as buoyant as several months ago, according to major benchmark surveys.
The main market numbers back the view that the Auckland residential sector is on an upward trend.
Sales volumes for the overall market and the top 15 per cent of residential properties were up by 47.6 per cent in the July quarter this year, rebounding from a 34.7 per cent fall in volume in the July 1998 quarter compared with the same quarter a year ear- lier.