New Zealand property in no gain phase

According to the latest information, and a Herald on Sunday Analysis, the real estate market is not gaining value.

New Zealand real estate is not something that has seen a dip in value for many years. The property boom here has been happening since before 2001, making it even more valuable. Yet, while experts say that the property market is always climbing in value, more and more evidence shows that it is at a stand still.

A analysis was done by the Herald on Sunday, a local new source of the Real Estate Institutes data for the 2007 year shows that property here is at a stand still, or in a "no gain" phase.

There are plenty of reasons for such a turn including the economy which has seen some evidence of falling, as well as interest rates, which are likely to go up rather than down any time soon. In addition, house prices here are the highest in many areas of the world. Increasing value is not likely.

In some ways, the decrease in house sales will help the country to become more affordable for new homebuyers or second home buyers. While just a few years ago purchasing a home for the first time here seemed a difficult margin at best, with no growth in house values for the foreseeable future, prices will become more affordable.

According to a recent study, the Real Estate Institute of New Zealand reported that house sales here dropped to a low not seen in 7 years in December. Factors effected by this include economic growth and the property market in the country.