Brand new Zealand home seller tosses in totally free Tesla because market crumbles

Unusual offer in Auckland comes amid affordability crisis that has seen house prices fall more than 10% within a year

As New Zealand’s housing market continues to plummet, the owners of one home have opted to throw in a free Tesla to try to entice buyers.

The advertisement for the newly built five-bedroom home and granny flat in Auckland is headlined “brand new Tesla and brand new home”.

New Zealand’s housing market has been dropping steadily for a 12 months, with high mortgage rates scaring many prospective buyers away. Real Estate Institute (REINZ) data released this week shows that the median house price was down 10. 9% annually, to $825, 000. The particular overall volume of houses sold in October had also dropped dramatically: down 34. 7% compared with last year, from 7, 486 to 4, 892.

Auckland’s median price decreased 12. 7% from October 2021, in order to $1. 09m. Properties were staying on the market for longer, REINZ said, with the national median stretching to 44 days in October, up 10 days through the year before.

The Auckland homeowners had been hoping to stand out in what has become an intensely competitive marketplace, Barfoot & Thompson sales agent Kapil Rana told TVNZ, adding that the particular vehicle has been a “bonus”, rather compared to an add-on to the market value. Tesla cars sell in New Zealand for about $72, 400.

The Auckland property will be on the market with regard to offers around $1. 8m – but it sits alongside more than 400 homes for sale in the suburb, many of which are likely be on the particular market for months. In this selling environment, tactics like the Tesla could turn out to be increasingly popular for sellers looking to offload property quickly – plus for estate agents trying to sweeten deals without driving area home prices straight down.

The drop in house prices and volumes continues to be primarily driven by the jump within interest rates – which Brand new Zealand’s reserve bank has been raising to combat high inflation – traveling up mortgage rates.

If mortgage prices stay higher, many of New Zealand’s recent, highly leveraged purchasers could be in trouble: those who fixed short term interest rates when buying at the marketplace peak within 2020-21 when interest rates were low, are now facing the particular possibility associated with significantly increased mortgage repayments.

The particular reserve bank’s financial stability report, launched this month , showed that if interest rates hit 7%, almost half of people who bought this past year would need in order to spend 50% of their income on home loan repayments.

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