Family home dream washed away: Dad braces for $100k loss on flood-wrecked Auckland property

The proportion of properties being sold for more than the original price is at its lowest level since 2015, according to CoreLogic's latest Pain & Gain Report.

And while some economists expect house prices to rise next year, homeowners who are forced to sell now could face the prospect of making a significant loss.

One of them is a father who purchased a property in Parnell about a year ago. The central Auckland townhouse may look dry today, but it was knee-deep in water during the January floods. 

The house was yellow-stickered and the repair deadline has kept changing, according to the owner, so he's decided to give up on it. 

"It's just been extension after extension as to where the finishing point will be," he told Newshub. 

The man chose not to be identified, but wanted to share his story to raise awareness about the ongoing battle for owners of flood-ravaged houses. 

He's listed it for sale - knowing he's likely to make a loss on the property -  because the stress is too much on his family. 

"I'm expecting to lose upwards of around $80,000 to $100,000."

CoreLogic's latest data shows in the three months to June, 6.9 percent of properties were re-sold for less than what they were bought for. That's up from 5.9 percent in the first three months of this year, and well up from 0.7 percent at the end of 2021.

"The key thing here is the downturn in property values over the past 12 or 18 months," CoreLogic property economist Kelvin Davidson told Newshub. 

It's in Auckland where sellers have felt the most pain: 11 percent of resales in the city during that three-month period were below the original price.

The median resale loss in Auckland was about $95,000, compared to around $50,000 in other centres like Christchurch and Hamilton.

"Unfortunately, whatever the reason, there are people who are out there who are having to sell within a short period of time, and there is a likelihood of taking a loss," Davidson said. 

On the upside, Westpac economists "now expect prices across the country to rise by almost 8 percent over 2024", up from their previous estimate of 2.5 percent, according to the bank's latest economic report. 

That's thanks to population growth and expectations that borrowing costs are close to their peak.

But there will be an Official Cash Rate update from the Reserve Bank next week and Westpac senior economist Kelly Eckhold says the risk of another hike remains. 

He told Newshub that's because "inflation pressures are still fairly persistently strong and that should be of concern to the bank". 

The problem for the owner of th property in Parnell is he cannot wait for the market to improve. He and his family are living in temporary accommodation and he wants to improve their situation. 

"For the health and happiness of my family, we need to sell and potentially start again, sadly."

All his hopes and dreams for what he thought would be a new family home, have been completely washed away.