Skyrocketing house prices means buy now, says real estate agent

House prices across New Zealand are continuing to rocket upwards with no sign of slowing. With prices continuing to grow, one real estate agent says the best time to buy is now - before it gets any worse. 

Martin Cooper told Magic Talk on Saturday business is booming.

"It's flat out - there's no stopping it."

Good news for Cooper - but what about the rest of us?

He says with no end in sight, Kiwis would be wise to spend big now.

"If you're buying for a long-term-hold,  buy now - what you pay for now, I'll buy back off you in ten years time," he said.

"It's going to keep going up - get in now and make a commitment, that's the way to go."

However this option is simply not viable for a large swathe of New Zealand.

The median house price in New Zealand is now $725,000 - a 20 percent increase from the same time last year. In Auckland, the average is now over $1 million but data from Stats NZ shows the median weekly earnings for 2019 was just $1016.

Cooper says urgent reform to the Resource Management Act is needed, as demand is outstripping supply. More land is needed, so that more houses can be built.

The Government has promised to repeal and replace the Resource Management Act, with Prime Minister Jacinda Ardern saying it's one of the causes of the skyrocketing house prices. 

"Labour will continue to improve the availability of land for housing through better-integrated planning and investment in urban development, infrastructure and transport, and set standards for quality urban design," she said in a statement.

However, before that happens, Cooper says people need to stop "giving up" on being homeowners.

"If you set a goal and you make a commitment - you can buy an apartment you can get on the ladder, or buy a location that's not as popular," he said.

"It's still achievable but a lot of people give up and when you give up you buy yourself things to make yourself feel better.

"New car, the latest phone, and then you miss out." 

 

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