“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.

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!) :

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!

What will this year bring us in the property market? It is only a year since all was doom and gloom with no end to the recession in sight. Right now, it seems like we are going to have a great year! According to Alistair Helm CEO at Realestate.co.nz, sales of residential property in New Zealand were up 10% on the previous year and he predicts that there is plenty of scope for more:

“In the last 12 months there were a total of 67,197 residential sales as compared 60,981 in the period to October 2008 – a 10% increase. The good news is there is great scope to see sales rise even more in 2010 – based on a 10 year average of sales as a ratio to the number of houses across the country we should be seeing sales averaging 96,000 a year! – so there is upside growth in sales to come, hopefully we will see some of this in 2010.”

Yesterday I sold two family homes in Milford and Forrest Hill. Both homes had multiple offers within 48 hours of listing, with 9 buyers wanting the  two houses. The were both sold well in excess of the asking price. So what is driving the property market, and more particularly what is happening on the North Shore, the highest value real estate in the country? Why is it so buoyant, why now, and will it last?

Simply; Supply and Demand. Every year the population of the North Shore increases by about 4000 people and that rate gets gets faster, every year. Statistics New Zealand thinks it will be approaching 6000 per year in the next decade. About half that increase is new babies, and the rest is immigration. People just love our climate, our lifestyle and the opportunities for work, education and play. On average there are about 2.8 people living in each house on the North Shore, so every year we need another 1400 homes built to accommodate all those people.

These homes are NOT being built, the builders can’t get the land, the labour or consents quickly enough.

And thats why the price of your home is going up.

The number of building consents has declined steadily from a high of 1300 in 2004 to 950 in 2008. And then in 2009 only 508 homes were built….there is now a shortfall of about 1400 homes. It will take years to catch up. Already in Auckland the number of families without homes is growing, and the New Zealand Herald reports that on the North Shore there is a crisis as even high income families find they cannot afford to buy an average home.

Already, the Herald is reporting that the number of building consents is rising but the lead time for obtaining consent for subdivision, the development of the land, building consents and building is measured in years. It takes far too long to build a home in New Zealand, and most of the time is taken up by these consent processes.

The government, Reserve Bank and North Shore City council have a problem. Homes for families will keep rising in price. The price of a home will not be driven downward or slowed down by arbitrary manipulation of the Official Cash Rate. The price of a houses will only come down when the supply of homes exceeds the demand. And it is the governments red tape that is causing the problem.

The North Shore needs 2500 homes to be built this year. That’s a suburb or two. I don’t see where those suburbs are being built, so you?

In the meantime, if you are selling you can expect to get a great price. Call me and I’ll show you how you can be “overwhelmed” as my sellers said one Wednesday, when they sold for $20000 more than the asking price.

If you are buying, you are making a great investment, and can expect prices to rise in the next few years. Call me and get the inside running on those “hot” homes, before they get onto the market. Let’s see if we can get a great deal for you.

The North Shore property market is booming, with considerable demand from a wide range of buyer types and a marked increase in sales occurring, according to local Harcourts business owner Martin Cooper.

The Principal of Harcourts’ franchise Cooper & Co, which operates seven offices on the North Shore, says the latest Real Estate Institute of New Zealand statistics showed there was a huge increase in sales last month when compared with August 2008 and according to his group’s figures September is also proving very active.

“According to the REINZ statistics 454 North Shore houses were sold in August, which was a massive 89% up on the same month last year, while from our own figures for September and the anecdotal feedback from our team the North Shore market is continuing to run hot this month, with a lot of buyer demand and a considerable amount of sales being made.”

Mr Cooper says auctions have proven to be the most successful method of sale.

“According to our group’s August figures we had an 84.3% success rate through the auction process – with 72.5% sold prior to or on auction day and 11.8% sold within 14 days of their auction date. That’s a fantastic result and a credit to the sales consultants and auctioneers in our group who work together to achieve such successful auction campaigns.”

Mr Cooper says a wide range of buyers are actively looking on the North Shore and therefore there is considerable competition for property.

“According to our own data first-home buyers are the largest group of people looking for North Shore property but they are closely followed by investors and there is also a significant amount of competition from people moving into the area, along with new immigrants and ex-pats returning.”

This wide range of buyers has strong interest in all price brackets up to around $900,000, and with the high level of demand around some excellent prices are being achieved which in turn is enabling many sellers to ‘trade up’.

“Harcourts Cooper and Co team has also sold an impressive 14 properties in the past month priced in excess of $1 million, indicating the top end of the market is waking up again.”

During the week I met a client of mine who is considering whether to sell. We have talked about this sale over the last two or three years. She asked me, “Is now the right time?”, and then she said ” Stop being a real estate agent and tell me what you really think”.

I laughed- real estate agents are so full of bluff and bluster, (I’m being polite)-it sometimes is hard to know when we are being real or just spouting a line to get a listing! So I said, “You want me to be enthusiastic and positive, don’t you?!”

So, Is it really the right time to sell? Well, it’s your house, your land, and it really is up to you. I can only help you get the very best price for your house when you decide the time is right for you.

However, there are market factors, right now, that indicate that it is a good time to go to the market. Let’s look at the evidence on a national basis, locally and how it might affect you, today.

After two years of the ball being very firmly in the buyers court, real estate commentator  Alistair Helm of realestate.co.nz says the market is stable and swinging towards a sellers market, but there is a real danger of lack of stock driving up prices. The NZ Property Report, dated 1 Sept 2009, shows a clear lack of houses on the market, especially in the main centres. Auckland is the worst off, there are 45% (almost half) the number of homes on the market as there were a year ago. And this shortage of property for sale will drive up prices. One of the really scary things is that there are few homes being built, and little land being subdivided. Watch out!

Yet Auckland is New Zealand’s biggest city and the landing pad for most immigrants and returning ex pats. These buyers have cash and they are actively in the market buying homes with British Pounds and Chinese Yuan. Often this money is secured against overseas assets and borrowed with low interest rates. It is one of the reasons why the New Zealand Dollar is high. Overseas buyers have always valued New Zealand land and property highly, often higher than the locals ( think of British migrants in 1840, buying land from the locals for a few blankets!).  And while local interest rates are the lowest we have seen for decades, they are forecast to rise in the New Year, so buyers are buying and fixing their rates. Remember a loan in 2009 costs a third less than the same loan did a year ago.

So, locally, on the North Shore, there is a boom. How long will it last? I don’t know, you tell me. The auctions I have attended have been active and exciting. At 89 Forrest Hill Road, Forrest Hill about 200 people witnessed a battle royal. 3 bidders fought over an 1800m2 section with an original 1950’s weatherboard bungalow. It sold for $1,200,000. I have attached the bid sheet for you to see. 7 Trafalgar Road, Milford, a brick and tile 1960’s home, nicely renovated, with a pool, sold after a fiercely contested bidding war, for $900000. And 60 Kowhai Road, Mairangi Bay, sold for $855,000 3 weeks before the auction. The buyer made the sellers an offer they could not refuse, to avoid missing out (again).

Not every home is right for auction however, and some are more difficult to sell than others. If you are needing some advice, without bluff and bluster, call me.

Is now the right time to sell? The market evidence says YES.

Is it the right time for you? Only you can answer that.

If the answer is YES, give me a call on 0800618888.

Garden or Goldmine | Forrest Hill | Auction

Garden or Goldmine

A rare, once-only opportunity has become available to secure this wonderful estate in the heart of Westlake School Zone. Built by the current owner in 1955, this is the first time this property has come to the market. Situated on a prime 1816m2 freehold site (zoned Res4A), the lucky purchaser has the option to do-up and enjoy this secluded property or explore the development options available. This north facing property enjoys wide panoramic views across to Rangitoto, the Hauraki Gulf and over to Lake Pupuke. With close access to Westlake High, Smales Business Farm and the motorway, the key ingredients here are location and potential – combined with the genuine motivation to sell! Your immediate inspection is highly recommended…Will be sold!

Under the Tuscan Sun | Auction| Mairangi Bay

Lovely Italianate Home

This Italian inspired property is positioned on a generous landscaped site on the sunsoaked northern slopes of Mairangi Bay. Rarely do we get to see quality, thoughtful design and construction that is evident in this home. Set amongst an enclave of similar quality properties and with added security of being well off the road the property has been designed with family living in mind. Excellent multiple living spaces flow directly to a sunny northerly outdoor entertaining area. The bus route to Campbells Bay School at your driveway, plus Mairangi Bay School just a short walk away. Rangitoto College zoning, as well as Westlake High. This property is seriously impressive and should command attention from any astute home buyer.

Private Sanctuary | Campbells Bay | $635,000

Peace and Privacy in a Secure Location

For those who value peace, privacy and security, look no further! Within a safe environment of top quality homes the property offers exceptional value with 3 bedrooms, separate bathroom and shower, a double garage, block & cedar construction, a freehold full-site and a northerly aspect. Within easy striking distance to the beach, bushwalks, golf course, tennis club and zoned for Westlake High, Rangitoto College and Campbells Bay Primary – this property is a must see!

X Factor | Milford | Auction

Changed Circumstances, Sale Pending

Change in owners circumstances mean this property will be sold! A substantial one level brick and tile home with multiple living areas. The home is wrapped around a superb private outdoor retreat featuring a stunning gas fire, swimming pool and sprawling decks. The master suite features a modern ensuite and flows to a deck over-looking the pool. A separate pool house provides numerous options and features its own bathroom, private deck and separate entrance – the perfect teenagers retreat, work from home or games room. Realistic sellers – Will be sold!

Something Special | Milford | Auction

Ideal for Investors and First Home Buyers

Looking for location?
Looking for low maintenance?
Looking for an easy-care garden?
Looking for something immaculate?

Then look no further. This 2 bedroom home is worth a look. Being the rear one, it would be the ideal home for retirees, singles, professional couples or investors. The market is active. You probably missed out on the rest, so don’t let this one pass you by. Be first to view.

Bargain Hunters Dream | MIlford | $335,000

Cheap Do Up

Calling developers or first home buyers here’s your chance to secure a unit in Milford. The family grew but the rooms didn’t!

It’s rough – in original 1960’s condition, vacant now, all offers considered.

Wasn’t it interesting that a week or so ago both the Prime Minister, Mr John Key and the Governor of the Reserve Bank, Mr Alan Bollard independently stated that they thought the worst of the recession was over. Perhaps we have had the major earthquake, and may yet still experience some after shocks. Staggering when months ago they were talking Armageddon and Great Depression.

Confidence has been evident in our real estate market for quite some time. We are noticing people coming back to the market in all areas. Investors are back buying investment property. fist home buyers have been back for a while.

Recently I attend the auction of a 1200m2 development site in Quebec Road in Milford. It sold for $803,000with very competitive bidding. This is an outstanding result and shows confidence in future demand and higher prices for homes. Auckland needs 21,000 new houses every year, yet over the last two years there have been few building permits issued, little subdivision and many builders have hung up their tools. Soon there will be demand for new homes and long lead times to build them. At Harcourts we are noticing a significant rise in section sales, see our CEO’s report here as builders prepare to start building again.

Immigration is on the rise, a huge number of Kiwis have been repatriating so very soon we will have a lack of housing stock. This is further pressure on the market and another reason for the fence sitting buyers to take action.

With lower prices, lower interest rates and an easing of banks terms and conditions there are many reasons to buy right now. It’s almost like a perfect storm, so what do you want to do? Buy or sell? Watch from the sidelines or get involved? Call me right away on Freephone 0800 61 88 88!