The million dollar question that

we are asked at the moment is

“what do you think will happen to the interest rates

this year, how high will they go?”

A lot of people are uncertain about what’s happening with interest rates so they are going on the floating rate to watch and wait. [Read more →]

The Three Auctioneers

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.

andrea z @ flickr

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.

[Read more →]

Image: Bloomberg News/Landov

The Reserve Bank of New Zealand has just decided not to alter the Official Cash Rate. If you are borrowing right now it is unlikely you will see further big interest rate reductions, so while you can get money at 5.4% the banks are suggesting you fix that rate for the short to medium term.

[Read more →]