Everyday Money

I don't seem to be able to leave housing (as a topic) alone. This time it is good news for first home buyers. A recent Westpac report predicts flat prices for around 5 years. (This news is not so good for second home investors).

The number of house sales has declined by a third back to 2003 levels - an early warning sign. Westpac claims that monthly house price inflation has screeched to a halt. Rental yields are currently at around 4% and mortgages 9% plus, make the residential rental market very unattractive indeed.

The report suggests that housing affordability (defined as 25% of disposable income servicing an 80% mortgage) will eventually swing back in favour of home buyers but no t for about eight years as incomes catch up and prices stagnate.

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Everyday Money

“Bizarre” says Clayton Cozgrove-and that is putting it politely.

Everyday Kiwis buy and sell homes and if you don’t plan to do it yourself, you will use a real estate agent. Now, you've got to wonder what is going on at Agent Central; The Real Estate Institute. A 2003 survey on the REINZ website showed that only 23% of all vendors thought that that agents commissions were reasonable. And its not just the commissions that concern us. In May the agent who was presented with a top industry award omitted to advise the purchasers of a home described as being ‘Out of the hustle And bustle” was next to a site that was earmarked for a large apartment block.

I wonder if any of the 23% of voters were real estate agents. Comedy Central er the REINZ are hearing charges against a hapless Chris Taylor of the Joneses chain, who said that “people are paying too much to sell a house and getting an indifferent service for it”. He charges a flat fee rather than a commission.

The self regulation of the Real Estate industry is a joke. It is to be hoped that the new code of ethics prepared by David Russell will address the issue. My view is that realtors should be registered and aligned to disclosure fully as are other professions.

Update: Mr Taylor was not censured-now there's a surprise.

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