INDUSTRY UPDATE

INDUSTRY UPDATE: With an OCR on hold and a current interbank mortgage war that is resulting in record low rates, it’s no wonder October numbers just released have resulted in an increase in the number of sales. Alongside this, the Reserve Bank have flagged their intention to review the current Loan to Value Ratios. Currently, banks can only lend 15% to new customers with less than a 20% deposit and 5% of banking to those with less than 35%. 
Our observation is that in real terms there is no shortage of homes available, rather sales volumes have been and still are limited by bank funding criteria. Consequently, these two factors together should have a positive impact on market sentiment and ultimately activity.

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Auckland Region Favouring Buyers - First time sonce 2011

The Auckland region favours buyers for the first time since 2011. New listings are up 14.6% across New Zealand and the national average asking price falls by 2.1%, driven by major centres.

Real-time statistics from realestate.co.nz show that our biggest region, Auckland, is looking fresh and healthy for buyers, with a large injection of new listings (up 20.1% on last year). 

The total number of homes for sale is up 17.0% to 9,906 when compared to October 2017. 

“Given the level of new listings, the total amount of stock for sale and a slowing of sales rates, the Auckland market is favouring buyers to an extent we haven’t seen for nearly nine years.  

“It means that buyers have a lot more choice and can take a considered approach to their buying process,” says spokesperson Vanessa Taylor.

Average asking prices in the Auckland region dipped 1.3% compared to September 2018, dropping to $964,936.

This injection of new listings and increase in total stock shows us that if theoretically no new homes were to come onto the market, at the current sale rate, the total pool of houses for sale on the market would sell out in 25 weeks – which is two weeks more than the long-term average of 23 weeks in the Auckland region.

“There’s plenty of homes for buyers to choose from, without having to deal with the frantic market that we’ve seen in past years” says Vanessa.

“It’s not just the Auckland region which is alive and well,” says Vanessa. 

Across the country interest is high, with 901,919 unique browsers visiting the realestate.co.nz site during October. Of this, 94,955 were searching in the Auckland region alone.

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The Xmas Rush Is Here!

The predicted rush of listings pre-Christmas is upon us. As mentioned in previous articles those vendors who put off selling last year post election are now on the market. Just how many ‘meet the current market’ will be interesting to observe. Supply/demand ratios right now look to be favouring buyers in some quarters, consequently given the fact that many buyers are now spoilt for choice, for vendors, it may be a case of first out best dressed this side of Christmas. A note of caution to buyers: beware of indicated or estimated selling price ranges or market value ranges as predicted by algorithms on various websites. In many cases these can be over the likely selling range and in excess of the vendors’ expectation. If you like the look of a house, please inspect.

Presention – Happy to Help!

You just can’t underestimate the value of presenting your home well. It’s not just worth money, it’s also worth time. In other words, great presentation helps make your property saleable. It’s difficult to quantify this because we never get to offer the same house in two different states of presentation. However, what we do observe is the impact on buyers. ‘I really like it!’ Is a phrase that describes more than bricks and mortar, selling a home is also very much about selling a feeling. If you’re thinking of selling this year, you should start preparation now. A fresh set of eyes can help – I’m happy to volunteer!

DO YOUR HOMEWORK

DO YOUR HOMEWORK

When it comes to selling your home presumption can work against you.  Presuming your property is compliant when it’s not produces frustration for both buyer and seller. When it comes to compliance your investigation should include – works done to a dwelling, title defects and/or outstanding issues thrown up by a Land Information Memorandum.  Presentation is one thing and yes very helpful but the glitches just cited could affect buyers ability to fund the purchase of your home.  In short, if you are thinking of selling, do your homework before you start.  Needless to say, we are happy to help.