Average Sale Price v Average Rating Value

For the 2017 year I have looked at REINZ monthly comparisons of Feilding house sale prices versus rating values (as at 1 August 2016). There is an upward trend but with a large distortion in June 2017. For the first five months of 2017, the average monthly sale price was 15.37% above the 1.8.16 rating value. The average monthly increase for the last five months was 18.71%. I have excluded June and July 2017.

In dollar figures the average increase for the first five months was $43,700, against the average rating value of those sales of $292,700. This compares to the average monthly dollar figure for the last five months of 2017 of $51,300 against the average rating value of those sales of $282,000.

It doesn’t pay to get too fixated with the detail, but the clear trend shows that sale prices throughout 2017 were generally significantly above the August 2016 rating valuations, with the level of increase getting higher as the year went on.


 

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What skills should your Real Estate Agent possess?

Competent appraisal ability.

Strong marketing skills.

Outstanding negotiation skills.

Be trustworthy.

Be positive and realistic.

Experience at achieving win win outcomes.

Property presentation knowledge.

Property knowledge.

Local market knowledge and experience.

Real Estate Agency work experience.

A partnership to provide backup.

The back up of a reputable and successful Company. 

You want an agent who will maximise the value of your property, and always act to do the best for you.


 

 

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Sale Prices and Numbers Strong

The number of Feilding houses sold through all Licensed Real Estate Agents was 31 for December, which is high for a December as business usually wanes from the middle of the month. Feilding’s median sale price seems unnaturally high in December at $361,250 calculated over 3 months and $380,000 for the month alone. I note that it was between $299,500 and $320,000 from January to October last year. Our relatively small sample of sales means that the median bounces around more than in a larger city with larger number of sales. I will be watching the median closely, and expect it to drop back somewhat. It was higher than Palmerston North’s for the month of December alone.

Median house prices in December, calculated over three months, were:

Feilding                                $361,250

Palmerston North                371,000

New Zealand                         540,000             

Eastern Suburbs AK          1,680,000

Auckland total                      850,000             

Wellington total                  548,750

Levin                                      277,000             

Whanganui                           206,375

Rangitikei                              185,000             

Pahiatua                                130,000


 

 

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Changing Spread of Sale Prices

Happy New Year, and I expect a very positive 2018 for our town and District.

There has certainly been an upward movement in the spread of Feilding house prices. I looked at all house sales through all Licensed Real Estate Agents in the three month period from September to November 2017. There were 85 sales. Not so long ago we used to always have a significant number of sales under $200,000. There were none! The spread was as follows:

Sale Price

0 – $100,000                                          0%

$100,000 – $199,000                          0%

$200,000 – $299,000                        31%

$300,000 – $399,000                        34%

$400,000 – $499,000                        13%

$500,000 – $599,000                        11%

$600,000 – $699,000                          8%

$700,000 – $799,000                          3%

 

35% of sales were above $400,000. That is a big increase. The largest number in any $100,000 range are now taking place between $300,000 and $399,000, whereas a short while ago the $200,000 – $299,000 range had the greatest number.

 


 

 

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A good community is good for the property market.

Feilding is a good community with good civic facilities, pre schools, schools, sports clubs, art and cultural organisations, service clubs, support networks, attractive town centre, nice public gardens and parks, good shops, hospitality businesses, trade, professional and service businesses, manufacturing, food processing and of course is the agri business centre for the Lower North Island. With over 450 events at Manfeild annually and a boutique movie theatre, entertainment is well catered for, and we have a strong regional city of nearly 90,000 population only 20 km away, where many of our residents work. Feilding is home to more Ohakea Airbase personnel and their families than any other urban centre. Feilding is only two hours from Wellington, Wairarapa, Hawkes Bay, Taranaki, Mount Ruapehu and Lake Taupo.  

Christmas Carnival Day with stunning parade and Rural Day are good examples of Feilding’s strong community spirit, and I wager that we have more volunteers per capita than just about anywhere.

Business people locate their businesses where they want to live. Residential growth has occurred as we have improved Feilding as a quality country town with great lifestyle benefits. More people provide opportunity for more businesses. More businesses attract more people. With growth comes a healthy real estate market and upward movement in property values. Let the positivity and growth continue.


 

 

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Fundamentals Still Good

Our Manawatu economy is in good heart with GDP above the national rate, migration to the Manawatu is still growing, job numbers have increased, wages increased significantly last year, and unemployment is low, Manawatu retail is strong, and construction is strong. 

The Reserve Bank has eased the loan to value ratios (LVR’s) making it a little easier to borrow for housing, and while our values have risen significantly in the last two and a half years, we remain one of the most affordable parts of New Zealand to buy a home. Interest rates are likely to stay low. We have a relaxed and easy lifestyle that is the envy of many suffering in the big city rat race. Less people are leaving the Manawatu.   

My prediction is for a strong year for the Feilding and Manawatu property market in 2018, because we are experiencing business growth and population growth. Demand will fuel the market, and we are still playing “catch up” with a large part of New Zealand.


 

 

 

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Christmas and New Year a time for housing decisions

Many families get together to celebrate Christmas, relax and enjoy each other’s company. Housing discussions are often on the agenda. “Is our house too small for our growing family?” “Would Mum or Dad find it easier in a smaller lower maintenance home?” 

If you are thinking of selling, it is a good idea to have your property listed with us and available over the holiday period, because many families and individuals are looking at this time, especially on the internet, and in the bumper property publications. 

We are fast counting down to the cut off for bookings in the final bumper property publication, which has a life of about four weeks, instead of one. Get the ball rolling today. It only takes a phone call. It would be a privilege to serve you.


 

 

 

 

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Real Estate cycle – Where are we?

Picture a clock with 12 being boom and six being bust.

The cycle is not an even movement from “hour to hour.” 

The recovery may take years and we might be in boom or bust mode for a long time, but the transition from boom to bust can be quick.

With each stage of the market, there are different opportunities. 

Where do you think we are at right now? 

Auckland commenced a boom well in advance of us and is probably leaving it behind. I estimate that Auckland is at three. 

Manawatu started much later and I believe will retain the boom for longer. I see us at 12.


 

 

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Auckland Auckland Auckland


I am a bit fed up with the election in particular being dominated by the Auckland housing crisis/challenge. The journalists and politicians seem to forget that over half of New Zealand is outside of Auckland.  

Our part of New Zealand is affordable for most people. In Feilding in the last three months, there were six houses sold through Real Estate Agents at under $200,000, 15 between $200,000 and $250,000, and 20 between $250,000 and $300,000. I would call those 41 houses  affordable.  

In Auckland many people are calling $600,000 affordable, a few are saying $450,000, and some are even calling $1,000,000 + affordable. 

Regional New Zealand has so many advantages. We can always visit the big cities.

Kind Regards – Michael Ford


 

 

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Bayleys Conference

I had the privilege of recently attending  the Bayleys Conference with colleagues from Feilding, Palmerston North and Whanganui offices.

A few stand out facts:

  1. Bayleys sold $11 billion worth of real estate in the last year.
  2. Bayleys now sells one property in five in New Zealand.
  3. Auckland market has slowed with some values having dropped.
  4. Most provincial markets are still strong with values still rising.
  5. Bayleys are strong in residential, lifestyle, farms, commercial, industrial, businesses, and project development.
  6. Tania Osborne and I are enjoying working at Bayleys Feilding.

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