Property market health check

Next week is going to give us a good feel for what is happening with property prices across the country. On Monday we will have the latest QV statistics and, assuming history repeats, the Real Estate Institute figures will be out later in the week.
The feeling is that the market is starting to flatten out. This week’s Auckland house price data from Barfoot and Thompson showed the number of sales are increasing but prices aren’t. One possible theory is that the Mexican standoff between sellers and buyers is easing and vendors are now accepting prices around 9-10% less than they would have a year ago.
Clearly property investors and first home buyers are more active in the market and it wouldn’t be a surprise to see a shortage of stock in the lower price ranges.

What do you think?