Crazy number of offers on first homes & investment potential houses

So what the heck IS happening in Wellington, & New Zealand real estate?

Heres your author, with a plain house that just had 23 buyers put offers in to be the new owners!

So I'm trying to work out what the chicken entrails are telling us:

NZ banks are, & have been, actively lending again at 6.95 to 8%. Even to 95% loans. Kiwi banks , & their Aussie parents, havent been involved the international financial stupidity, & seem to be doing fine.

First home buyers keen.

Investment buyers standing , salavating at the sidelines. NZ rents are still strong. Many have portfolios bought at half current values & are, after depreciation, seriously cashflow positive. AND, thats BEFORE they refinance fron currently ending 9.5% loans to maybe 7.5%!

So: tidy 2 flat home in Berhampore: $900 week rent, very tidy. 7.1% gross, two offers at that level, so not a random yield.

Kilbirnie: $630, 000 sale, with tidy up: potential 8.8% gross yield.

Yet the media tell us the end is still....maybe...nigh!

23 offers on a do up ( ie tired house) on a lovely flat section near Peter Jacksons Mirimar Wellngton Film studios. For those of you not Wellingtonians....flat sections are RARE! Im serious. We pay more for them!

The picture is if it , with a flattering shot of your author.

32 offers (truly, 32 buyers putting legal offers in, for consideration) on a tidy house nearby.(!)

So....there is a shortage of stock.

Are we at the bottom?

High immigration inwards helps prices up.

Building costs are still astronomical ( double Queenslands per square metre rate)

Hmmmm....whats going on? I will tell you what I think is happening....soon.

With apologies to friends who are new age ( see http://www.starlightrising.com/ )

"Astrology was invented to make economic forecasting look good"

Keynes