Gunne – house prices to slow
In its annual review of the property market Gunne Residential said it expects the price of second-hand homes to rise between 3% and 5% this year, with affordability a major issue for some buyers.
The auctioneers said although 2006 was overall a successful one for the second-hand housing market with prices up by around 12% – 13%, it was a year of contrasts with much slower growth in the last quarter.
The price of second hand homes was nearly stagnant in the last three months of 2006 with growth nationally of only 1%. Gunne said sellers will have to be realistic in terms of their price expectations this year.
The auctioneers said the slowdown in the last quarter was due to the five interest rate increases kicking in, and buyers hesitation before the outcome on stamp duty was revealed in the budget.
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