Originally Posted by
minimoke
Three year anniversary shrewdy.
Remember you were looking at a $330k median property and a 9.5% floating rate back then and you didn't think it was a good time to buy.
REINZ figures out today show a median of $360,000 - the highest property values have ever been. Thats a 9% increase in value from your original question - despite all the doom and gloom and the "market will drop by 30%" and "we are due a housing fall...."
We still can't get 100% mortgages but you could get a 90% one now - but banks are probably stil going to prefer a 20% deposit.
Interst rates are at around 5.79% for a floating rate now or 7.20% for a two year fixed.
During the last few years we've seen dozens of finance companies go under and $b's in investor funds lost. A first home buyer would be in deep poo if they had parked their deposit and savings there over the last few years.
As for the equity market, not too many IPO's; a few listed companies no longer around and the NZX and back in Jan 07 teh NZX All index was at 4106 gross (1094 capital index or a market cap of $41,370m) wheras for December 09 it was at 3247 (773 cap index and market cap of $33,431m). Again if a home buyer hopeful had put their money into equities, hoping for a an imporovement in their housing postion I think they will be a bit disappointed.
So in summary we've seen property go up, deposits go down, equities go down. Perhaps back in Jan 07 first home buyers weren't screwed after all.