MoveNorthShore.co.nz » house prices

The Residential Property Market has found its level for Spring

Tony White — Tue, 15 Nov 2011 01:30:29 +0000

New Zealand house sales numbers ease slightly which is unusual for our Spring Market and the median price rises ever so slightly. Nationally, the Spring Market is not producing the expected “lift” and stays quite steady. Every Spring we expect a surge in sales as families seek to get moved before the summer. September gave us a clue that this Spring would not be as busy as hoped and October’s sales figures confirm that.

Whilst we remain over 5000 sales for October at 5,007 it is down 228 compared to September, when we all expected it to rise. Maybe buyers were distracted by the Rugby World Cup, the upcoming election and the unsettling events in the European Financial Markets. On the North Shore sales have been steady while Harcourts market share has increased.

Sales were way ahead of 12 months ago, being up 1,104 sales up on October 2010 (+28.3%) when sales numbers were at their lowest for the past 20 years.
It was interesting to note the sales volumes in Auckland dropped by 4.7% when one would normally expect a modest increase over the previous month, but of all our centres Auckland was probably the most distracted by the Rugby World Cup.
The sales activity around the country varied so much when compared to the previous month:
Taranaki    + 15.5%
Wellington + 7.6%
Southland + 2.4%
Northland   – 28.7%
Auckland    – 4.7%
Southland’s median price rose 19.3% and Taranaki rose 11.1%

The median days to sell continues to improve, moving from 37 days in September to 35 days in October. The last five years have averaged 41 days so we are in a fairly settled market now and maybe for a few more months too.
The national median price rose by $9000 in October and continues to fluctuate in the same narrow range over the last two years of $345 000 to $365 000.
July             2011        @ $345 000
August        2011        @ $355 000
September 2011       @ $350 000
October      2011        @ $359 000

The regions continue to show marked variations month by month. With low sales volumes in some regions the median price will always fluctuate and too much should not be read in to the figures from any one month. A marked increase in activity in Taranaki and Southland shows there is confidence in the provincial and rural areas and in the past, many previous growth periods in the property market have begun in theprovinces. It could now be FebruaryMarch before we see any real change.

REGION

                                                  Sept.Median               October Median
Northland                                                 $290 000                        $292 500
Auckland                                                   $475 000                        $465 000
Waikato / Bay of Plenty                         $300 000                        $315 475
Hawkes Bay                                              $270 750                        $259 500
Taranaki                                                    $261 528                         $290 500
Manawatu / Wanganui                          $220 000                         $221 750
Wellington                                                $380 000                        $392 500
Nelson / Marlborough                           $326 000                         $343 500
Canterbury / Westland                          $311 500                          $329 000
Central Otago / Lakes                            $385 000                        $420 000
Otago                                                         $230 000                        $232 000
Southland                                                 $171 000                          $204 000

(Source of figures; REINZ Statistics October 2011, released 11th November 2011).

North Shore Real Estate Market Surges

Tony White — Fri, 01 Apr 2011 02:12:39 +0000

Tony Alexander

I still have a struggle reconciling the negative reports in New Zealand media- both the press and on TV, about the real estate market. The are simply out of touch with the reality of a great real estate market here on the North Shore.
It’s quite simple. Buyers are in the market and actively buying homes right now. These are the results from recent auctions I have conducted
13 Katui Street, Castor Bay

over 60 groups attending open homes, 70 at the auction, 6 buyers, 3 bidders….sold $1,300,000, unconditionally.
1 Trafalgar Road, Milford

over 60 attending open homes, 50 came to the auction, with strong bidding by 3 parties up to $780,000.
9 Sandford Street, Campbells Bay

50 groups attending open homes, 50 at the auction, 4 buyers, 3 bidders, strong bidding up to $760,000 and then someone mad a king bid and took it away for $825,000.
Over the last two months the Harcourts Milford office has sold 65 homes with a total value of over $40,000,000.

These are exceptional results and while we are a great office with exceptional sales people, right now there is a shortage of homes on the North Shore. I have reported this to you before. And the problem is not going to go away. So prices are going to go up. If you are buying, take advantage of the lowest interest rates we have had for many years. If you wait til next year both interest rates and prices will be higher.
If you are thinking of selling give me a call, we have a pool of buyers looking for family homes in Campbells Bay, Castor Bay and Milford. Its likely you will have multiple buyers interest.
If you have any doubts, read what Tony Alexander, The BNZ Chief Economist had to say recently…”What those factors tell us is that although prices are high by world standards construction costs are rising, an aging population will drive average occupancy down, building standards keep getting lifted, councils won’t free up land on their outskirts, non-housing assets like shares tend not to be favoured by Kiwis, banks are newly easing their lending criteria, funding for new subdivisions has structurally declined, and from late this year we expect a period of labour market strength. Offset by the depreciation allowance change from April 1, weak sentiment, and easing net migration inflows we get a picture of a market likely to produce rising turnover then rising construction then capital gains from late this year led by Auckland.”
Tony Alexander, BNZ Economist, BNZ Weekly Overview, 17 March 2011
On the North Shore this recovery is starting early and will continue. Later this year, the World Cup will be in Auckland, and the North Shore will stand to benefit. The rebuilding of Christchurch will start and the National party will be re elected. ( sad for a green like me!) but good for business confidence. I feel very strongly that this renewed and stronger real estate market is here for a while yet. You can be assured that now is the hour if you are buying, you certainly don’t want to wait for the reserve bank to raise interest rates and for prices to rise.
Seller should be confident that now is a great time to sell, with confident buyers with low interest cash in their pockets. Here’s a link to help you get a great price for your house.

Harcourts Milford Auction Results

Tony White — Mon, 11 Oct 2010 05:23:56 +0000

Spring has definitely arrived in Auckland, all that bad weather in September seems a distant memory. Kings Garden Centre was nuts last Sunday, everyone was out buying their tomato plants and I could smell steak on the neighbours BBQ last evening!

And, despite some gloomy reports in the news, spring is definitely sprung our auction results. It is notable that Auckland seems to be the only bright spot for house sales in the country, and it is very difficult in Christchurch right now. A LIM report can take up to 6 weeks due to the damage the Christchurch City Council records department sustained in the earthquake.

Harcourts Milford is the leading practitioner of auctions in the country. If you simply want the best you must choose the Milford office! Month after month we conduct the highest number of auctions in the country, with the highest success rate. The reason for this is that we have a team that knows auction inside out- we’ve been doing it for more than 20 years. In September the office listed 21 auctions, I listed 3. Many of the team here have been running auctions successfully for more than 10 years, including me!

Stephen Johnston, our in-house auctioneer, conducted 25 auctions in September, of which 24 are sold unconditionally. The 25th is currently under negotiation $10000 apart as I write. This is simply an outstanding result.

If you are considering an auction for your house sale, look no further, give me a call!

During September our in rooms auction special was held at Winger Subaru. Over 150 buyers were present with competitive bidding on all properties. 7 of the 11 were sold unconditionally.

In October we have a brand new home selection, if you want a copy of the Order of Sale email me here.

My pick? There are two sections in Campbells Bay, the CV’s are sky high, and the vendors are open to all offers, they both need a deal on auction night, subject to bank approval. Both properties will represent great value. The auction will be held at our Campbells Bay office on Monday, 18 October, 2010 at 6.00pm.

Spring Lift in North Shore Real Estate Market

Tony White — Thu, 09 Sep 2010 02:47:24 +0000

Graph from Crockers

So, what’s happening in our real estate market? Real Estate agents have to be positive – it’s our job! I don’t know anyone who would employ a real estate agent who wasn’t positive and enthusiastic! So here’s a little reality..

On the North Shore the real estate market in winter has been quite difficult and patchy – May and July were horrible, June was excellent, and I sold 4 homes in August! But winter is always a bit like that, it’s been wet, wet and wetter, and the post budget blues didn’t help either. But what’s happening right now?

Well I have been checking our year to date sales and, like Barfoot and Thompson, we can see that 2010 is a much better year than 2009, by 20%. Thats right, at least 20% better than last year. Sales Volume is up 20% and values up 24%. Take a look at the REINZ graph above and see what Olly Newland has to say here. Quotable Values, usually a little bearish, report that sales are up 5-6% on an annual basis. I have included their report at the end of this blog.

So what! Well…. if you are thinking of buying, then maybe you should. And if you are thinking of selling, then maybe you should…

Buyers

There have been those in the New Zealand Herald telling buyers to be cautious. Well gee whiz! so buyers should be..in any market. Always good advice! Have a good look around, get a building inspection, make sure you follow the golden rules; location, location, location, and buy the worst house in the best street and then buy the house you like. Make sure you get a good mortgage and pay it off.

This is a good time to buy, interest rates are low, but they are not likely to go lower. Delay a year and you can guarantee that rates will be higher. Right now mortgages are more affordable than they have been for years.

Don’t get caught in the rent trap. It might seem cheaper in the short term, and the likes of Bernard Hickey will tell you it makes more sense to rent than buy, but be careful…you can pay rent all your life and you’ll never even own the letterbox. And if you got off the property ladder during that downturn in 2009, make sure you get back on now….it can be very hard to get back into the market once you are out. Any improvements you make to a house while you are renting is money down the drain, and the landlord can just send you a pink slip and have you out of there at very short notice. If you rent, it is not yours. If you own, it is your own home.

And rents are rising, GST goes up in October, rates will rise too, and now that the government has changed the depreciation allowances we can expect more rises. Again, we are noticing rents are rising – around $20.00 per week and more in our office. Good news!…. if you are thinking of investing in a rental property! (I have bought a block of 3 flats this year and looking to buy another soon). Bad news if you decide not to buy and continue renting.

As Olly Newland says: “Take your courage in both hands so that in the future you will not look back and say “If only I had taken advantage of the market during the recession in 2009/10 instead of hesitating!”

Sellers

Right now the spring lift is happening. Open homes I ran during August had 100′s of people attending. Two homes I sold were on the market less than 30 days. At 78a Castor Bay Road one weekend I saw 75 people, many were cashed up buyers who had gotten out of the housing market in 2008/9 or were immigrants or returning expats. Some of these immigrants have been here for a few years and while their pounds and US dollars are not as good as they once were, the value of their currency is not improving, and they can see now is the time to buy. Many had pre-approved mortgages. Mortgage brokers report that enquiry is strong and that the banks are ready to loan. For example, some banks have reduced the deposit required for a home loan from 20% to 10%. You can expect buyers in the market this spring.

Many sellers will wait to see what happens next and there could be a flush of property on the market in November. Meaning there will be lots of competing properties on the market. My advice? If you are thinking of selling in the next 3/6 months, NOW is good. Here’s 12 ideas on how to sell your North Shore house in spring. Christmas is only 100 days away. That is not a lot of time. Get your copy of the 7 Secrets of Getting a Great Price for Your Home when You Sell NOW and then me a call on 0800 61 8888.

I have a particular shortage of family homes with lawns and garden for children and dogs, with space for 3 vehicles or more, in all areas. If you have a 50′s, 60′s or 70′s home give me a call now (Radio Hauraki has some great rock from this era!….great music and great homes go hand in hand, do you think?)

Here are my sources:

Olly Newland has a great blog on the housing market on his website called “Have We Turned the Corner”

and interest.co.nz has a superb overview of the current market here, including the following article by Glenda Whitehead at Quotable Values:

Auckland Market Report

QV’s Residential Price Index for August shows that property values in the Auckland region are just beginning to stabilise, although have dropped by 0.7% since March this year. In contrast, values increased by 6.7% in the 7 months to March. Consequently, values now sit 5.9% above the same time last year, but 2.4% below the market peak of late 2007.

Glenda Whitehead of QV Valuations said; “Values in the Auckland region’s residential market now appear to levelling, although it is too soon to tell whether this is the end of the downward trend which has persevered since March”.

“August activity remained light and caution prevails, but we are seeing early signs that home owners are gearing up to make decisions. We suspect many are assessing their options and actively seeking information, as we have noticed a recent in increase in Market Valuation reports by QV’s registered valuers”

Ms. Whitehead said. “Some home owners are taking advantage of readily available builders, planning extensions and alterations to their existing homes. While this data is not fed into the QV index, it is a sign that home owners view the property market positively enough to believe the cost of renovations will be recouped in the future. Cost and added-value differ, but those we speak to are making long-term decisions whilst enjoying a higher quality home in the short-term. This activity is obviously only being undertaken by those in secure employment and with good levels of equity in their homes” Ms. Whitehead said.

“The North Shore market remains patchy, with no push from buyers. The time taken to sell a property remains extended, with agents reporting low activity levels. However, we believe pre-approvals and requests for refinance are on the rise, a possible signal of a pending bounce in the spring market” Ms. Whitehead said.

“Auckland City is characterised by general lack of confidence. Higher quality properties are still faring reasonably well and some good prices are still being achieved when the right buyer finds the right property. Buyers appear more demanding of quality, and are overlooking properties that have any negatives” Ms. Whitehead said.

“Activity in West Auckland remains subdued and buyers remain cautious, as in other parts of the region. Many home owners are refinancing their existing situation. Of the homes that are selling, those that are upgraded and well located tend to be the ones that find a buyer” Ms. Whitehead said.

“Activity in the South and South East market also remains subdued. Values do however appear to be relatively steady with fewer listings and fewer sales. The lower end of the market, sub $300,000, now appears to have become more attractive to investors, reflecting improved yields. But again, buyers remain cautious. Anecdotally, activity in the $400-600k bracket seems limited.

Uncertain economic conditions continue to dampen confidence” Ms. Whitehead said. QV’s Residential Price Index is calculated using sales data from the 3 months leading up to the month being reported. It is not the same as the average sales price, which fluctuates in line with the mix of properties selling in upper or lower price brackets. The average sales price for the Auckland region in July was $535,918.

Getting a Great Price for your North Shore Home

Tony White — Thu, 05 Aug 2010 00:52:14 +0000

Do you know the 7 secrets to getting a great price when you sell your home on the North Shore?

A brand new 12 page SPECIAL REPORT is now available which shows home owners 7 secrets to getting a great price when they sell their home. Here are just a few of the critical things you will learn when you read the 7 Secrets Report.

I f you are planning on selling your home within the next 3-6 months, don’t do anything until you have read this FREE REPORT. Selling your home is a complex process with a lot of money at stake, so it’s vital you do it right.

Secret 1 is all about the “two magic words”. Here you will learn the two words that will determine how successful you are at getting a great price when you sell your home. These two words can also be used to help you get great results in every area of your life.

Secret 2 covers the key buyers you must identify if you want a great price for your home. In this secret you will get a quick introduction to seven different groups of buyers and why each one is important to getting a great price. You’ll also get a simple exercise to help you identify a special group of buyers who will fall in love with your home and be far more willing to give you a great price.

Secret 3 shows why good marketing always helps in getting a great price for your home and why you need to use a number of different marketing approaches to attract different groups of buyers.

Secret 4 explains the simple things you can do to make your home look super attractive to all potential buyers. You’ll discover two inexpensive things you can do to instantly make your home far more appealing and attractive.

Secret 5 has some critical tips on how to price your home correctly. This is vital in ensuring you get a truly great price.

Secret 6 is all about the importance of good systems to handle all the things that need doing when you sell your home.

Secret 7 is a simple way to save you time and effort and still get a great result.

You can get you free copy of the 7 Secrets special report NOW, by phoning Tony on 0800 61 8888 or emailing Tony by clicking on this link:

CLICK NOW

and send Tony an email and request your own copy of the

7 Secrets of Getting a Great Price When You Sell Your Home.

Special Report | 7 Secrets to Getting a Great Price for Your Home

Tony White — Wed, 28 Jul 2010 02:38:11 +0000

There are 7 Secrets to getting a great price when you sell your home on the North Shore of Auckland. And a brand new special report explains exactly what these are and how to use them.

If you are planning on selling your home in the next 3-6 months them make sure you read “The 7 Secrets to getting a great price when you sell your home”. You can get your copy of this FREE SPECIAL REPORT (there is no obligation) simply by CLICKING HERE.

You’ll learn how to target key buyers who will give you a great price. You’ll discover simple ways to make your home look super attractive to these buyers and some handy tips on marketing. Any of these secrets can help you get thousands of dollars more when you sell your home.

Here’s what some of my clients, who have used the tactics and tips in this report, have said about marketing campaigns we have conducted:

“Now that the Christmas rush is over, I wanted to write to you and thank you very sincerely for the time and effort that you put in to the marketing and selling of our home.

Both Graham and I were very aware that this exercise was a particularly tricky one for you, as well as for us, but it is thrilling to have the sale behind us so we can move ahead with our future plans.

Tony, at the beginning of our marketing exercise you promised you would give our property 100%. That you did, and more! We wish you all the very best for the future and we would not hesitate in recommending you to any one else looking for someone to market and sell their home.”

Graeme and Dianne Rice

“Just a note of thanks for selling our house for such a great price! we would not hesitate to recommend Harcourts and Tony and Pip White to our friends and family.

We wanted to sell our house privately and save the commission. But first we asked Tony for his advice. He sold it for nearly $100,000 more just 4 weeks later. We were amazed that over 200 people attended the auction and that we got such a good price it was featured on the front page of the NZ Herald.”

Jerry Firth.

Using even one of these strategies can help you to get thousands (and even tens of thousands) of dollars more when you sell your home.

Most of these strategies are logical and obvious when you see them explained. They are ‘common sense’ if you like.

The interesting thing about common sense, though, is how uncommon it actually is. You would be amazed how often smart people forget to use some of these simple ideas when they sell their home. And end up with an average result rather than a great one.

The good news is that all seven of these secrets are very easy to understand and are simple to use. (Particularly if you follow the last secret.) Please don’t even consider putting your house on the market on the North Shore before you have read this report. Call Tony on 0800 61 8888 and I’ll have your copy in the mail right away!

CLICK HERE NOW for your copy of this

FREE SPECIAL REPORT.

East Coast Bays Riding High in National Real Estate Sales

Tony White — Thu, 04 Mar 2010 22:09:26 +0000

East Coast Bays median sales price is riding high compared to the national median sales price. Already the second most expensive place to buy a house in New Zealand, the North Shore continues to bound ahead.

In January the number of property sales across New Zealand fell to their lowest level in nearly two decades, according to the Real Estate Institute of New Zealand. However East Coast Bays was a little sheltered with our share of the national sales figures increasing. But the median price of $555,500 was 12.3% higher than January 2009, this compares with a national growth of 7.7%. And while the national sales price fell $10000 from Dec 09 to Jan 10, it increased in East Coast Bays by $22000, thats a 4% growth month on month!

The days to sell a house has increased from a low of 30 back in November and December to 38 days in January. These is a normal trend when buying a house comes second in priority to taking a summer break.

The main reasons for this continued high performance is immigration and a lack of residential building in the last few years. We need 1400 homes a year and only built 500 last year. See my earlier blog.

Here are the numbers( if you want specific figures for your street or ‘burb let me know!) :

Month	Median Sale Price	No. of Sales	Median Days
Feb 09	$490,000	93	61
Mar 09	$501,000	139	32
Apr 09	$501,400	110	37
May 09	$531,000	125	35
Jun 09	$522,750	114	29
Jul 09	$533,250	120	33
Aug 09	$542,500	134	31
Sep 09	$592,750	128	28
Oct 09	$560,000	127	30
Nov 09	$583,000	109	31
Dec 09	$533,800	91	31
Jan 10	$555,500	80	38

2010: A Bumpy Ride or Tsunami?

Tony White — Sat, 27 Feb 2010 21:12:44 +0000

The Real Estate Institute of New Zealand has just reported that sales of homes and residential property in January have plummeted to their lowest level in nearly two decades.

Brian Dalley, in his Market Blog, reports that while property sales appear to have screeched to a halt it’s just part of the cycle. So, what’s up with house sales on the North Shore?

Newspaper reports state that inaction by property investors anxious about John Key’s pronouncements on revising the tax structure for property investment has caused a pause in the market. And yet, on the North Shore house prices have increased from an average of $526, 500 in December to $535,500 in January, with sales levels about the same as last year at 249 homes sold. (see REINZ residential highlights-Jan 2010).

And wasn’t there a real surge in sales just before Christmas last year? Well, there was, but not really. Real Estate sales people were happy that the usual summer surge happened on the back of low interest rates and mortgagee sales but it was still no where near the volumes we had back in 2004 to 2007.

A Bumpy Ride

2010 is is going to be a bumpy ride, but it ain’t a tsunami. There’ll be more mortgagee sales and a few home owners cashing up to reduce debt due to redundancy or lower cash-flows from their small business.

But as I have previously reported there is an underlying shortage of homes on the North Shore, and the builders have started building again.

This year a well presented, well marketed home will sell well. You may need to be a little patient and a little smart to get the price you want, but keep your head and you will do well.

If you are looking at investment properties, look for positive cashflow- try a home and income. And haunt the mortgagee sales.

Be sure that when you buy a home for your family on the North Shore, it’s a sound investment- the North Shore is New Zealand’s lifestyle city!