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Property Report – March 2014

blue pen and small houseThe March 2014 NZ Property Report published by Realestate.co.nz provides an insight into the state of the New Zealand property market as measured by the supply side of the property market over the month of March. A full print version of the NZ Property Report – March 2014 is published below and is available for download (800kb) and distribution.

 

Summary of the market – March 2014

Residential asking prices reach new national high

CoverPage_Report_Jan14

Average asking prices of newly listed residential properties across New Zealand rose to a new record high in March driven by renewed seller confidence in the major centres.

The record high (seasonally adjusted) average asking price of $484,263 was driven up by new record asking prices in Auckland, Wellington, and Waikato.

Average Auckland asking prices have risen 12% in the last year, reaching $683,169 in March, Wellington asking prices rose 7% Year on Year to $469,487, and Waikato rose 10% Year on Year to $393,169,

New national listings in March showed lower levels than historic years, with 12,488 new homes come on the market. This equates to 2% less than the number of new listings seen in March 2013. However Auckland, Wellington, and Christchurch all saw a healthy increase in new listings, providing more selection in the biggest NZ region.

The inventory of unsold homes on the market recovered slightly in March, rising 8% from February to 28 weeks of stock, and shows that the market is beginning to see re-balancing. Due to the rise in listings Auckland began to see a recovery in inventory, rising 19% from 13 weeks to 15 weeks of stock.

Regional Summary – Asking price expectations

Regional map of asking price NZ Property Report Feb 2013

Following the record asking prices seen last month, national asking prices again reached new records in March of $484,263 (Seasonally Adjusted Truncated Mean)

Record high asking prices were seen in 3 regions in New Zealand; Auckland, where the average asking price reached a new high of $683,169 (up 12% on March 2013); Wellington, where asking prices reached $469,487 (up 7% on March 2013); and Waikato where asking prices reached $393,169 (up 10% on March 2013).

In total 8 regions saw asking price increases, with just 1 region reporting an asking price increases greater than 5%. Gisborne reported the largest increase, up 6% from February to $297,255.

Of the 11 regions witnessing asking price falls there were 5 that reported falls greater than 5%, Wairarapa saw the biggest fall, down 13% from February to $285,829. Followed by West Coast, who witnessed a fall of 12.4% to an average asking price of $280,427.

Regional Summary – Listings

Regional map of new listings NZ Property Report Feb 2014

March saw a lower level of new listings than expected, with 12,488 new homes coming on the market. This was down 2% from March last year to the lowest level of listings seen for March since 2009.

New listings fell across most of the country in March with just 5 of the 19 regions seeing a listing increase on a year on year basis.

Of the 14 regions that reported lower new listings than February last year the most significant fall was seen in Coromandel and Nelson, falling 29% and 25% respectively.

There were 5 regions reporting year on year increase of listings with Wellington reporting the biggest increase of listings (up 11% from March 2013).

In the other main centers, Auckland, reported 4,389 new listings, up 5% from March 2013 and Canterbury reported 1,473 new listings, up 3.7% from last year.

Regional Summary – Inventory

Regional map of inventory NZ Property Report Feb 14

The inventory of unsold homes on the market recovered slightly in March, rising 8% from February to 28 weeks of stock, and shows that the market is beginning to see re-balancing.

The rise in inventory during the last month was witnessed in 13 of the 19 NZ regions, but overall the market remains firmly a seller’s market, and inventory on the market remains well below the long-term average of 37 weeks of equivalent sales.

Market sentiment continues to favour sellers in 12 regions (marked in blue), with the greatest strain continuing to be felt in the 6 regions, which are marked in dark blue.

Due to a healthy rise in listings, Auckland began to see a recovery in inventory, rising 19% from 13 weeks to 15 weeks of stock.

The level of unsold houses on the market at the end of March (42,152) was up slightly, when compared to February (41,731).

 

For Media Enquiries, please contact:

Paul McKenzie, National Marketing Manager, Realestate.co.nz | +64 21 618 537

Notes:

Truncated mean The monthly asking price for new listings presented in this report utilises the measure of ‘truncated mean’. This measure is judged to be a more accurate measure of the market price than average price as it statistically removes the extremes that exist within any property market that can so easily introduce a skew to traditional average price figures. The truncated mean used in this report removes the upper 10% and the lower 10% of listings in each data set. An average or mean of the balance of listings is then calculated.

Methodology With the largest database of properties for sale in NZ from licensed real estate agents, realestate.co.nz is uniquely placed to immediately identify any changes in the marketplace. The realestate.co.nz NZ Property Report is compiled from new listings coming onto the market from the more than 1,000 licensed real estate offices across NZ, representing more than 97% of all offices. With an average monthly level of over 10,000 new listings, the realestate.co.nz NZ Property Report provides the largest monthly sample report on the residential property market, as well as a more timely view of the property market than any other property report. The data is collated and analysed at the close of each month, and the Report is compiled for the 1st day of the following month. This provides a feedback mechanism as to the immediate state of the market, well in advance of sales statistics, which by the very nature of the selling process can reflect activity with a lag of between 2 and 4 months.

Seasonally adjustment The core data for the NZ Property Report is seasonally adjusted to better represent the core underlying trend of the property market in NZ. In preparing this seasonally adjusted data Realestate.co.nz is grateful for the assistance of the New Zealand Institute of Economic Research (NZIER) who use an X12 ARIMA methodology to calculate seasonally adjusted data.

Background to Realestate.co.nz Realestate.co.nz is the official website company of the real estate industry of New Zealand, it is an industry owned web business providing online marketing services to the real estate industry. The shareholders in the business comprise the REINZ (50%) and five of the largest real estate companies (50%). The business operates a portfolio of websites all focused to specialist sectors of the real estate market:

Realestate.co.nz is the heart of the business and is focused to the residential property market. The website attracts a significant monthly audience of over 760,000 unique browsers (Source: Nielsen Online Monthly UB, March 2014), with over 130,000 of those visiting from countries outside of NZ. In addition Realestate.co.nz receives over 42% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 200,000 users making the app the most popular property app in NZ. (popularity based on App Annie report of total downloads of property apps in New Zealand)

nzFarms is a specialist website presenting the most comprehensive selection of farms and agricultural businesses on the market across NZ. At this time it features around 3,000 listings for all types of farms and agricultural land as well as over 10,000 lifestyle properties.

Prime Commercial is a specialist website presenting the most comprehensive selection of commercial property for purchase or lease on the market across NZ. At this time it features over 25,000 listings for all types of properties – retail, commercial, industrial and investment properties.

Prime Business is a specialist website presenting the most comprehensive selection of businesses for sale on the market across NZ. At this time it features over 3,500 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

Realestate.co.nz is the official online property listing company of the New Zealand real estate industry, currently hosting over 100,000 listings, covering this portfolio of residential property for sale and rent, commercial property for sale and lease, rural properties and farms, as well as businesses for sale. With a subscriber base of over 1,000 offices, the company represents over 97% of all listings from licensed real estate agents in NZ. The full NZ Property Report for March 2014 can be downloaded here (800kb pdf document). Additionally the raw data is accessible here as an Excel spreadsheet enabling anyone to analyse the raw data and establish any trends or observations. Usage rights are governed under attribution to the source of the data being Realestate.co.nz. The next NZ Property Report for March 2014 will be published on this website on 2nd May 2014 at 11am.

By Paul McKenzie, Marketing Manager, Realestate.co.nz

If you have any comments or enquiries about the NZ Property Market or about marketing your property online, please contact me via EmailGoogle, or Twitter

 

1

NZ Property Report – May 2013

Posted on: June 1st, 2013 | Filed in Buying / Selling a home, Featured, NZ Property Report

The May 2013 NZ Property Report published by Realestate.co.nz provides an insight into the state of the New Zealand property market as measured by the supply side of the property market over the month of May. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – May 2013 is published below and is available for download (1.2MB) and distribution.

Summary of the market – May 2013

High demand, and lack of supply drives asking price to a new record high

The message coming from the property market is that buyers are still out and about and keen to find a home. However, their eagerness to buy is not being met with a consistent and sufficient supply of new listings. This scenario continues to drive this sellers’ market, and homeowners who are putting their property on the market are expecting to see a higher sale price, as flagged by the new record asking price seen in May.

Seller confidence has pushed up the (seasonally adjusted) truncated mean asking price to a new high of $454,795. This rise in asking price was noticeable in over half of New Zealand, with Auckland reaching a new record high of $631,656, and Central Lakes Otago reaching a new high of $707,510.

Property sales remain strong, with REINZ reporting 7,104 properties sales in April, up 25% on a year ago. However, new listings are not matching the sales strength, and reported with a fall of 4.3% year-on-year. The inventory of property on the market has fallen 29% in the past year to record low levels. On the back of record low inventory levels, the challenge for the market in the coming winter period will be if the level of new listings can keep up with the buyer demand that we are seeing in the main centres.

Asking Price

The seasonally adjusted truncated mean asking price for listings rose 4.3% (from May 2012) and reached an all time high of $454,795. This new record asking price level was up from the prior peak of $447,275 reached last month.

The trend as seen in the chart opposite, continues to show strength in seller price expectation, on the back of low listings, and strong demand in the main centres

New Listings

The level of new listings coming onto the market in May rose 5.9% from April, to a total of 11,001. However this represents a fall of 7.2% from May last year.

On a 12 month moving average basis a total of 131,053 new listings have come to the market since June 2012, as compared to 129,711 in the prior 12 month period, a rise of 1%. This compares to REINZ reported sales, which are up 17.6% on a 12 month comparable basis

Inventory

The level of unsold houses on the market at the end of May (39.698) was down 6%, when compared to April (42,225). Inventory, as measured in terms of equivalent weeks of sales fell in May to a record low of 25.4 weeks, remaining well below the long-term average of 38 weeks.

The market remains firmly a seller’s market; with 18 of the 19 regions showing inventory levels that are well below long term averages. Both Auckland and Canterbury continue to witness the highest extent of this, reach record low inventory in May. Auckland is 59% below its long term average, and Canterbury is 52% below its long term average.

Regional Summary – Asking price expectations

The national asking price expectation among sellers rose by just 1.7% in May to a new peak of $454,795. This exceeds the prior peak of $447,275 reached last month (seasonally adjusted truncated mean).

Following the new record high for the national asking price figure, both Auckland and Central Lakes / Otago again posted record highs of $631,656, and $707.510 respectively in May. In contrast Marlborough asking prices again fell 0.8% from April to a record low of $350,649.

In total 11 regions reported asking price increases from April, the most significant rises was seen in the Manawatu / Wanganui region, up 11.9% to an record asking price of $279,009. Of the 8 regions witnessing asking price falls on a seasonally adjusted basis there was just one reported a fall of greater than 5%, Wairarapa fell by 10.5% to $254,461.

Regional Summary – Listings

The picture for new listings across the country continues to show that there is a reluctance to bring new properties to the market. There were 13 of the 19 regions that reported new listings down on the prior year, with 3 of these reporting falls of over 20%.

The most significant drop in listings was seen in Gisborne, falling 45.7%, and West Coast, which fell by 26.4%

Of the 6 regions reported higher new listings than May last year Central North Island was the region to report the highest increase of 15.2% when compared to May 2012, followed by Coromandel who saw an increase of 7.6%.

Auckland listings were down 3% in May to 3719 listings. The lack of new listings coming to the market puts further pressure on Auckland market, resulting in a record low available inventory of just 7557 homes (27% down from May 2012)

Regional Summary – Inventory

The inventory of unsold homes on the market tightened to a all time low of 25 weeks of sales in May.

Both Auckland and Canterbury hit record low inventory levels in May. With Auckland falling to 12 weeks, 59% below its long term average. And Canterbury falling to 14 weeks, 52% below its long term average.

Market sentiment continues to favour sellers in 18 regions, with the greatest strain being felt in the 10 regions that are marked in darker blue. This includes the main metro areas of Auckland, and Canterbury, which remain under pressure from low listings as measured against sales activity.

Just one region (Southland) showed an increase in inventory of homes on the market taking them above their respective long-term average.

Lifestyle

New lifestyle property listings rose across the country in May. A total of 964 listings came onto the market, showing an rise of 23% when compared to April, and a fall of 1.4% when compared to May last year. The truncated mean asking price for these listings was up by 0.3% as compared to the recent 3-month average to an asking price of $679,142 (up 3.6% when compared to May 2012).

Apartments

New listings for apartments in May were up 12.9% on a year on year basis, and up 18.9% from April, with 559 being brought to the market. The truncated mean asking price of new apartment listings fell 4.6% to $383,953 in May from $402,364 in April, but was up 3.3% on a year on year basis.

The Auckland apartment market had 296 new listings coming onto the market, up 33% when compared to May last year. The truncated mean asking price of new listings in Auckland fell to $348,476 (May) from $366,355 (April). When compared to the recent 3-month average, this represents a fall of 4.6%.

For Media Enquiries, please contact: Paul McKenzie, Marketing Manager, Realestate.co.nz | +64 21 618 537

Notes:

Truncated mean The monthly asking price for new listings presented in this report utilises the measure of ‘truncated mean’. This measure is judged to be a more accurate measure of the market price than average price as it statistically removes the extremes that exist within any property market that can so easily introduce a skew to traditional average price figures. The truncated mean used in this report removes the upper 10% and the lower 10% of listings in each data set. An average or mean of the balance of listings is then calculated.

Methodology With the largest database of properties for sale in NZ from licensed real estate agents, realestate.co.nz is uniquely placed to immediately identify any changes in the marketplace. The realestate.co.nz NZ Property Report is compiled from new listings coming onto the market from the more than 1,000 licensed real estate offices across NZ, representing more than 97% of all offices. With an average monthly level of over 10,000 new listings, the realestate.co.nz NZ Property Report provides the largest monthly sample report on the residential property market, as well as a more timely view of the property market than any other property report. The data is collated and analysed at the close of each month, and the Report is compiled for the 1st day of the following month. This provides a feedback mechanism as to the immediate state of the market, well in advance of sales statistics, which by the very nature of the selling process can reflect activity with a lag of between 2 and 4 months.

Seasonally adjustment The core data for the NZ Property Report is seasonally adjusted to better represent the core underlying trend of the property market in NZ. In preparing this seasonally adjusted data Realestate.co.nz is grateful for the assistance of the New Zealand Institute of Economic Research (NZIER) who use an X12 ARIMA methodology to calculate seasonally adjusted data.

Background to Realestate.co.nz Realestate.co.nz is the official website company of the real estate industry of New Zealand, it is an industry owned web business providing online marketing services to the real estate industry. The shareholders in the business comprise the REINZ (50%) and five of the largest real estate companies (50%). The business operates a portfolio of websites all focused to specialist sectors of the real estate market:

Realestate.co.nz is the heart of the business and is focused to the residential property market. It features the most comprehensive selection of property for sale and rent across NZ. The website attracts a significant monthly audience of over 500,000 unique browsers, with over 120,000 of those visiting from countries outside of NZ. In addition Realestate.co.nz receives over 30% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 145,000 users making the app the most popular property app in NZ.

nzFarms is a specialist website presenting the most comprehensive selection of farms and agricultural businesses on the market across NZ. At this time it features around 3,000 listings for all types of farms and agricultural land as well as over 10,000 lifestyle properties.

Prime Commercial is a specialist website presenting the most comprehensive selection of commercial property for purchase or lease on the market across NZ. At this time it features over 25,000 listings for all types of properties – retail, commercial, industrial and investment properties.

Prime Business is a specialist website presenting the most comprehensive selection of businesses for sale on the market across NZ. At this time it features over 3,500 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

The web business of Realestate.co.nz site is the most comprehensive real estate web operation in NZ, currently hosting over 110,000 listings, covering this portfolio of residential property for sale and rent, commercial property for sale and lease, rural properties and farms, as well as businesses for sale. With a subscriber base of over 1,000 offices, the company represents over 97% of all listings from licensed real estate agents in NZ. The full NZ Property Report for May 2013 can be downloaded here (1.2MB pdf document). Additionally the raw data is accessible here as an Excel spreadsheet enabling anyone to analyse the raw data and establish any trends or observations. Usage rights are governed under attribution to the source of the data being Realestate.co.nz. The next NZ Property Report for June 2013 will be published on this website on 1st July 2013 at 10am.

By Paul McKenzie, Marketing Manager, Realestate.co.nz

If you have any comments or enquiries about the NZ Property Market or about marketing your property online, please contact me via EmailGoogle, or Twitter

2

NZ Property Report – March 2013

Posted on: April 6th, 2013 | Filed in Buying / Selling a home, Featured, NZ Property Report

March 2013 NZ Property Report published by Realestate.co.nz provides an insight into the state of the New Zealand property market as measured by the supply side of the property market over the month of March. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – March 2013 is published below and is available for download (1.2MB) and distribution.

Summary of the market – March 2013

Property market continues to favour sellers, with asking prices near record levels.

 

Nationally the property market saw some stabilisation in March, with a mean asking price of $444,883, a small increase of 0.3% on February, but a growth of 4% on the same time last year, close to the $446,277 record set in November 2012. The average asking price (seasonally adjusted truncated mean) in both Auckland and Canterbury climbed further in March, reaching their 2nd highest recorded figures of $610,628, and 438,298 respectively.

The number of new listings fell slightly to 12,732, down 3% on February and down 4% year on year. However, the decrease in new listings was particularly apparent in the major centres, where the number of new listings in the main centres is not keeping up with demand, Wellington and Canterbury experiencing falls of 9.9% and 8.6% respectively from the same time last year, with Auckland’s figure falling by 4.6%.

The 12,732 new listings that came to market in March did little to ease the record low in inventory seen last month. Inventory – measured by weeks of equivalent sales – settled at 27 weeks. While this is a marginal increase on last month’s 26.2 weeks, it is still 20% less than March 2012, and well down on the long term average of 39 weeks.

 

Asking Price

 

The seasonally adjusted truncated mean asking price for listings in March rose by 0.3% to $444,883. It represents a 4% year-on-year growth in the asking price as compared to March last year, and is the close to the National asking price record of $446,227 which was set is November last year.

The trend as seen in the chart opposite, continues to show strength in seller expectation, on the back of low listings, and strong demand in the main centers

 

New Listings

The level of new listings coming onto the market in March fell 3% from February, to a total of 12,732. This represents a fall of 4% from March last year.

On a 12 month moving average basis a total of 131,703 new listings have come to the market since April 2012, as compared to 128,072 in the prior 12 month period, a slight rise of 2.8%. This compares to REINZ reported sales, which are up 18.1% on the same 12 month comparable basis.

 

Inventory

 

The level of unsold houses on the market at the end of March (43,930) was down slightly, when compared to February (44,698). The inventory as measured in terms of equivalent weeks of sales rose in March to 27 weeks, remaining well below the long-term average of 39 weeks. 

The market remains firmly a seller’s market; with 13 of the 19 NZ regions showing inventory levels that are well below long term averages. Both Auckland and Canterbury are witnessing the highest extent of this. Auckland is 53% below its long term average, and Canterbury is 45% below its long term average.

 

Regional Summary – Asking price expectations

The national asking price expectation among sellers rose by just 0.3% in March to $444,883, just below the high set in November 2012 of $446,277 (seasonally adjusted truncated mean).

The main centers – asking prices in Auckland, and Canterbury remained strong in March, each reporting asking prices close to the record highs seen in October 2012. Auckland sellers remained confident with an asking price of $610,628 (up 9.2% on last year), and Canterbury rose 2% from February to $413,403 (up 7.8% on last year).

In total 8 regions reported asking price increases from February, the most significant rises was seen in the Hawkes Bay region, up 5.1% to an asking price of $354,225. Of the 11 regions witnessing asking price falls on a seasonally adjusted basis there were three that reported a fall of greater than 5%, Central Otago / Lakes fell by 5.8% from the record set last month to $604,824, Gisborne fell 9.5% to $287,097, and Takanaki witnessed the largest drop, falling by 14.1% to $282,019.

 

Regional Summary – Listings

 

New listings fell across most of the country in March with just 5 of the 19 regions seeing an increase on a year-on-year basis.

The most significant drop in listings was seen in Gisborne, falling 19.8%, and Taranaki, which fell by 15.7%

Of the 5 regions reported higher new listings than March last year, just 1 region reported significant year on year increases of over 20%. Coromandel was the region to report the highest increase of 41.7% when compared to March 2012, followed by Otago who saw an increase of 12.7%.

The main cities continue to suffer from low levels of listings. Auckland listings were down 4.6%, Wellington was down 9.9% and Canterbury was down 8.6% year on year in March.

 

Regional Summary – Inventory

 

The 12,732 new listings that came to market in March did little to ease the record low in inventory seen last month. Inventory settled at 27 weeks (weeks of equivalent sales). While this is a marginal increase on last month’s 26.2 weeks, it is still 20% less than March 2012, and well down on the long term average of 39 weeks. 

Just three regions (Gisborne, Taranaki, and West Coast) showed increases in inventory of homes on the market taking them above their respective long-term average. In addition three other regions (Central North Island, Southland, and Wairarapa) sit close to their respective long-term averages.

Market sentiment continues to favour sellers in 13 regions, with the greatest strain being felt in the 8 regions that are marked in darker blue. This includes the main metro areas of Auckland, Wellington, and Canterbury, which remain under pressure from low listings as measured against sales activity.

Auckland is 53% below its long term average, and Canterbury is 45% below its long term average.

 

Lifestyle

 

New lifestyle property listings rose across the country in March. A total of 1,081 listings came onto the market, showing an increase of 2.3% when compared to February, but a fall of 6.3% when compared to March last year. The truncated mean asking price for these listings was up by 3.5% as compared to the recent 3-month average to a record high asking price of $689,910 (up 7% when compared to March 2012).

 

Apartments

 

New listings for apartments in March were up 3.2% on a year on year basis, with 544 being brought to the market. The truncated mean asking price of new apartment listings rose 2.4% to $392,443 in March from $383,077 in February, and was also up 7.2% on a year on year basis.

The Auckland apartment market had 369 new listings coming onto the market, up 17.5% when compared to March last year. The truncated mean asking price of new listings in Auckland rose to $380,805 (March) from $380,251 (February). When compared to the recent 3-month average, this represents a rise of 1.4%.

For Media Enquiries, please contact: Paul McKenzie, Realestate.co.nz | +64 21 618 537

Notes:

Truncated mean

The monthly asking price for new listings presented in this report utilises the measure of ‘truncated mean’. This measure is judged to be a more accurate measure of the market price than average price as it statistically removes the extremes that exist within any property market that can so easily introduce a skew to traditional average price figures.

The truncated mean used in this report removes the upper 10% and the lower 10% of listings in each data set. An average or mean of the balance of listings is then calculated.

 

Methodology

With the largest database of properties for sale in NZ from licensed real estate agents, realestate.co.nz is uniquely placed to immediately identify any changes in the marketplace. The realestate.co.nz NZ Property Report is compiled from new listings coming onto the market from the more than 1,000 licensed real estate offices across NZ, representing more than 97% of all offices.

With an average monthly level of over 10,000 new listings, the realestate.co.nz NZ Property Report provides the largest monthly sample report on the residential property market, as well as a more timely view of the property market than any other property report. The data is collated and analysed at the close of each month, and the Report is compiled for the 1st day of the following month. This provides a feedback mechanism as to the immediate state of the market, well in advance of sales statistics, which by the very nature of the selling process can reflect activity with a lag of between 2 and 4 months.

 

Seasonally adjustment

The core data for the NZ Property Report is seasonally adjusted to better represent the core underlying trend of the property market in NZ. In preparing this seasonally adjusted data Realestate.co.nz is grateful for the assistance of the New Zealand Institute of Economic Research (NZIER) who use an X12 ARIMA methodology to calculate seasonally adjusted data.

 

Background to Realestate.co.nz

Realestate.co.nz is the official website company of the real estate industry of New Zealand, it is an industry owned web business providing online marketing services to the real estate industry. The shareholders in the business comprise the REINZ (50%) and five of the largest real estate companies (50%).

The business operates a portfolio of websites all focused to specialist sectors of the real estate market:

Realestate.co.nz is the heart of the business and is focused to the residential property market. It features the most comprehensive selection of property for sale and rent across NZ. The website attracts a significant monthly audience of over 500,000 unique browsers, with over 120,000 of those visiting from countries outside of NZ.

In addition Realestate.co.nz receives over 30% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 145,000 users making the app the most popular property app in NZ.

nzFarms is a specialist website presenting the most comprehensive selection of farms and agricultural businesses on the market across NZ. At this time it features around 5,000 listings for all types of farms and agricultural land as well as over 11,000 lifestyle properties.

Prime Commercial is a specialist website presenting the most comprehensive selection of commercial property for purchase or lease on the market across NZ. At this time it features over 27,000 listings for all types of properties – retail, commercial, industrial and investment properties.

Prime Business is a specialist website presenting the most comprehensive selection of businesses for sale on the market across NZ. At this time it features over 4,300 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

The web business of Realestate.co.nz site is the most comprehensive real estate web operation in NZ, currently hosting over 110,000 listings, covering this portfolio of residential property for sale and rent, commercial property for sale and lease, rural properties and farms, as well as businesses for sale. With a subscriber base of over 1,000 offices, the company represents over 97% of all listings from licensed real estate agents in NZ.

The full NZ Property Report for March 2013 can be downloaded here (1.2MB pdf document). Additionally the raw data is accessible here as an Excel spreadsheet enabling anyone to analyse the raw data and establish any trends or observations.

Usage rights are governed under attribution to the source of the data being Realestate.co.nz. The next NZ Property Report for April 2013 will be published on this website on 2nd May 2013 at 10am.

By Paul McKenzie, Marketing Manager, Realestate.co.nz

2

NZ Property Report – November 2012

The November 2012 NZ Property Report published by Realestate.co.nz provides an insight into the state of the New Zealand property market as measured by the supply side of the property market over the month of November. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – November 2012 is published below and is available for download (1.2MB) and distribution.

Summary of the market – November 2012

Inventory hits 5 year low and adds growing pressure to the property market

The message coming from the property market is that buyers are out and about and are keen to get into the market. This eagerness to buy is matched by the availability of attractive mortgage packages, but is not being met with sufficient supply of new property listings, which is continuing to drive the current sellers market.

Inventory levels across the country remain low and the market remains a firms sellers market across 15 of NZ’s 19 regions. Overall stocks of unsold homes fell to a 5 year low of 28.7 weeks of inventory (long term average = 39 weeks). Auckland was again the most affected by low inventory levels, with stocks of unsold homes falling to a new low of 15.5 weeks of inventory, well below the long term average of 31 weeks.

The REINZ Residential Market Statistics reports strong property sales with 6,640 properties sold in October, up 33% on a year ago, and yet listing flow is not matching with just a 1.5% year on year growth. This is why the inventory supply of the property on the market (as measured by rate of sale) has fallen 29% in the past year.

This confidence on the part of sellers is certainly supported by the rate of sale of property which is being shared by real estate agents in their daily contact with the public, and can also be seen in traffic to Realestate.co.nz which has seen an increase this year of 40%, with over 1,400,000 monthly visitor sessions across all sites (Google Analytics).

 

Asking Price

The seasonally adjusted truncated mean asking price for listings steadied, rising just 0.2% to high of $446,277 in November.

The trend (as seen in the chart opposite) very clearly shows an accelerating growth in asking price over the recent 12 months (as compared to 2010/11) and shows continued strength in seller expectations.

 

New Listings

The level of new listings coming onto the market in November continued to increase, with 13,571 listings in the month – up from 12,688 in October (7% increase). However listings were only slightly up by 1.5% on November last year.

On a 12 month moving total basis the number of new listings that have come onto the market in the last year totals 132,493, as compared to 124,940 in the prior 12-month period, this represents a rise of 6%.

 

Inventory

The level of unsold houses on the market at the end of November (45,228) was up, when compared to October (43,410). The inventory as measured in terms of equivalent weeks of sales fell to a 5 year low last month to 28.7 weeks last month. This fall was witnessed across 15 of the 19 regions.

With the rising rate of property sales, the inventory on the market has seen a significant drop over the last 12 months pushing it well below the long-term average of 39 weeks of equivalent sales.

 

Regional Summary – Asking price expectations

The national (seasonally adjusted) truncated mean asking price expectation among sellers rose just 0.2% in November to a new high of $446,277.

In the main centers, Auckland, Wellington, and Christchurch all reported a fall in the asking price in November. Auckland fell 2.5% to $596,759, Wellington fell 4.2% to $431,259 and Canterbury fell 2% to $405,913.

In total 10 regions reported asking price increases, and 5 regions saw rises greater than 5%. The most significant rises were seen in the Central North Island, Northland, Manawatu/Wanganui and Southland with Central North Island showing the largest increases, up 6.9% to $369,390. Of the 9 regions witnessing asking price falls on a seasonally adjusted basis there was 3 that reported a falls of greater than 5% with Gisborne falling by 14.4% to $250,866, Hawkes Bay falling by 10.3% to $321,454 and Wairarapa falling 7.3% to $254,194

 

Regional Summary – Listings

Overall new listings increased on a national basis, as seen in the adjacent chart however across the regions there were slightly more regions showing increases than falls.

There were 11 regions reporting year-on-year rises, with significant increases (over 20%) seen in just 2 regions, the largest increases were in Gisborne (25%), and Otago (20%).

7 regions reported lower new listings than November last year with the Central North Island being the region to report the highest fall off of 35.8% when compared to November 2011, Followed by Northland who saw a fall of 21%

 

Regional Summary – Inventory

The inventory of unsold homes on the market tightened significantly in March – Falling to a new low of 28.7 weeks off equivalent sales from 33 weeks (on a seasonally adjusted basis).

Four regions (Southland, West Coast, Coromandel, and Wairarapa) showed increases in inventory of homes on the market taking them above their respective long-term average. In addition one other region (Manawatu / Wanganui) sits close to it’s respective long term average.

Market sentiment now favours sellers in 14 regions, with the greatest strain being felt in the 8 regions which are marked in dark blue, which includes the main metro areas of Auckland, Wellington, and Canterbury which remain under pressure from low listings as measured against sales activity.

 

Lifestyle

New lifestyle property listings fell across the country in November, dropping 4.9% when compared to October. A total of 1,066 listings came onto the market, showing a fall of 5.9% when compared to November last year. The truncated mean asking price for these listings was down by 1.5% as compared to the recent 3-month average to an asking price of $654,519 (up 13.9% when compared to October 2011). New record high asking prices were seen in 2 regions in New Zealand (Waikato – $675,581, and Central Otago/Lakes – $1,596,071).

 

Apartments

New listings for apartments in November down 9.5% on a year on year basis, with 484 being brought to the market. The truncated mean asking price of new apartment listings fell 1% to $394,282 in November from $398,121 in October, but was still up 6.4% on a year on year basis.

The Auckland apartment market had 304 new listings coming onto the market, down 13.1% when compared to November last year. The truncated mean asking price of new listings in Auckland rose again to $386,818 (November) from $382,303 (October) representing a 2.2% increase on the prior 3 months.

 

For Media Enquiries, please contact: Paul McKenzie, Realestate.co.nz | +64 21 618 537

Notes:

Truncated mean

The monthly asking price for new listings presented in this report utilises the measure of ‘truncated mean’. This measure is judged to be a more accurate measure of the market price than average price as it statistically removes the extremes that exist within any property market that can so easily introduce a skew to traditional average price figures.

The truncated mean used in this report removes the upper 10% and the lower 10% of listings in each data set. An average or mean of the balance of listings is then calculated.

 

Methodology

With the largest database of properties for sale in NZ from licensed real estate agents, realestate.co.nz is uniquely placed to immediately identify any changes in the marketplace. The realestate.co.nz NZ Property Report is compiled from new listings coming onto the market from the more than 1,000 licensed real estate offices across NZ, representing more than 96% of all offices.

With an average monthly level of over 10,000 new listings, the realestate.co.nz NZ Property Report provides the largest monthly sample report on the residential property market, as well as a more timely view of the property market than any other property report. The data is collated and analysed at the close of each month, and the Report is compiled for the 1st day of the following month. This provides a feedback mechanism as to the immediate state of the market, well in advance of sales statistics, which by the very nature of the selling process can reflect activity with a lag of between 2 and 4 months.

 

Seasonally adjustment

The core data for the NZ Property Report is seasonally adjusted to better represent the core underlying trend of the property market in NZ. In preparing this seasonally adjusted data Realestate.co.nz is grateful for the assistance of the New Zealand Institute of Economic Research (NZIER) who use an X12 ARIMA methodology to calculate seasonally adjusted data.

 

Background to Realestate.co.nz

Realestate.co.nz is the official website company of the real estate industry of New Zealand, it is an industry owned web business providing online marketing services to the real estate industry. The shareholders in the business comprise the REINZ (50%) and five of the largest real estate companies (50%).

The business operates a portfolio of websites all focused to specialist sectors of the real estate market:

Realestate.co.nz is the heart of the business and is focused to the residential property market. It features the most comprehensive selection of property for sale and rent across NZ. The website attracts a significant monthly audience of over 475,000 unique browsers, with over 115,000 of those visiting from countries outside of NZ.

In addition Realestate.co.nz receives over 25% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 122,000 users making the app the most popular property app in NZ.

nzFarms is a specialist website presenting the most comprehensive selection of farms and agricultural businesses on the market across NZ. At this time it features around 5,000 listings for all types of farms and agricultural land as well as over 11,000 lifestyle properties.

Prime Commercial is a specialist website presenting the most comprehensive selection of commercial property for purchase or lease on the market across NZ. At this time it features over 27,000 listings for all types of properties – retail, commercial, industrial and investment properties.

Prime Business is a specialist website presenting the most comprehensive selection of businesses for sale on the market across NZ. At this time it features over 4,300 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

The web business of Realestate.co.nz site is the most comprehensive real estate web operation in NZ, currently hosting over 110,000 listings, covering this portfolio of residential property for sale and rent, commercial property for sale and lease, rural properties and farms, as well as businesses for sale. With a subscriber base of over 1,000 offices, the company represents over 97% of all listings from licensed real estate agents in NZ.

The full NZ Property Report for November 2012 can be downloaded here (1.2MB pdf document). Additionally the raw data is accessible here as an Excel spreadsheet enabling anyone to analyse the raw data and establish any trends or observations.

Usage rights are governed under attribution to the source of the data being Realestate.co.nz. The next NZ Property Report for December 2012 will be published on this website on Wednesday 2nd January 2013 at 11am.

By Paul McKenzie, Marketing Manager, Realestate.co.nz

2

NZ Property Report – October 2012

The October 2012 NZ Property Report published by Realestate.co.nz provides an insight into the state of the New Zealand property market as measured by the supply side of the property market over the month of October. The key measures of the market analysed in the report are the number of new listings, the asking price expectation for those new listings and the level of inventory of unsold houses on the market at this time. The report is compiled from data captured by the website and represents close to 97% of all property movements in the NZ market as managed by licensed real estate agents.

A full print version of the NZ Property Report – October 2012 is published below and is available for download (1.5MB) and distribution.

Summary of the market – October 2012

The property market continues to show signs of confidence and heightened activity as compared to the past few years. The confidence amongst sellers bringing their properties onto the market has pushed up the (seasonally adjusted) truncated mean asking price to a new high of $445,529 – the highest level since the collection of data began in 2007. This rise in asking price was noticeable right across the country, with Auckland reaching a new record high of $611,864, and Canterbury reaching a new high of $414,070.

November saw a good rise in new listings (up 12% on October 2011), and this rise has lead to some balancing of the property market in both Wellington and a number of provincial regions.

While inventory levels across the country balanced in October, the market remains a firm sellers market across 12 of NZ’s 19 regions. Overall stocks of unsold houses rose slightly to 33 weeks of inventory (long term average = 40 weeks). Both Auckland and Canterbury remain firmly sellers markets, with overall inventory levels continuing to remain well below long-term averages.

The next data for November will be interesting to review as to the final flush of new listings coming onto the market in Spring – November is traditionally one of the biggest listings months of the year. Last year that total was just over 13,000 – that at a time when inventory was considerably higher than today.

 

Asking Price

The seasonally adjusted truncated mean asking price for listings rose 4% (from September) to an all time high of $445,529 in October. This new record asking price level was up from the prior peak of $435,887 reached in May this year.

The trend as seen in the chart opposite continues to show strength in seller expectation and strong demand in the main centers.

 

New Listings

The level of new listings coming onto the market in October continued to increase, with 12,688 listings in the month – up from 11,514 in September (14% increase). October also saw big increases on last year, with an increase of 12% in listings.

On a 12 month moving total basis the number of new listings that have come onto the market in the last year totals 132,291, as compared to 124,503 in the prior 12 month period, this represents a rise of 6.3%.

 

Inventory

The level of unsold houses on the market at the end of October (43,921) remained stable, when compared to September (44,063) as measured on a seasonally adjusted basis. The inventory as measured in terms of equivalent weeks of sales rose last month to 33.1 weeks last month. This rise was witnessed across 17 of the 19 regions. But overall inventory levels still fell well below the long-term average of 39 weeks.

 

Regional Summary – Asking price expectations

The national (seasonally adjusted) truncated mean asking price expectation among sellers rose 3.8% in October to a new peak of $445,529. This exceeds the prior peak of $435,887 reached in May this year.

Following the new record high for the national asking price figure, both Auckland and Canterbury also posted record highs in October. This is the first time that the seasonally adjusted mean asking price has topped the $600,000 mark in Auckland ($611,864), and the $400,000 mark in Canterbury ($414,070).

In total 15 regions reported asking price increases, and 7 regions saw rises greater than 5%. The most significant rises were seen in the Central Otago/Lakes, Canterbury, Gisborne, Manawatu/Wanganui, Southland, and Auckland regions, with Central Otago/Lakes showing the largest increases, up 18% to $621,200 (the highest seen since November 2007). Of the 4 regions witnessing asking price falls on a seasonally adjusted basis there was just 1 reporting a fall greater than 5% with West Coast seeing a fall of 6.5%.

 

Regional Summary – Listings

Overall new listings increased on a national basis, as seen in the adjacent chart however across the regions there were slightly more regions showing increases than falls.

There were 16 regions reporting year-on-year rises, with significant increases (over 20%) seen in 10 regions. The largest increases were in Taranaki (68%), Wairarapa (40%), Hawkes Bay (34%) and Gisborne (31%)

Only 3 regions reported lower new listings than October last year with Northland being the region to report the highest fall off of 17.4% when compared to October 2011.

 

 

Regional Summary – Inventory

The inventory of unsold homes on the market eased in October, rising 9% from September to 33 weeks of stock, and shows the market re-balancing.

This re-balancing is however not occurring in the two major markets of Canterbury and Auckland where the inventory continues to remain low.

Five regions (Taranaki and West Coast) showed increases in inventory of homes on the market taking them above their respective long-term average. In addition four other regions (Central North Island, Southland, and Otago) sit close to their respective long term averages indicating a more balanced market.

Market sentiment continues to favour sellers in the remaining 10 regions, with the greatest strain being felt in the 3 regions which are marked in dark blue, which includes the main metro areas of Auckland, and Canterbury, which remain under pressure from low listings as measured against sales activity.

 

Lifestyle

New lifestyle property listings had another boost across the country in October, rising a further 18% when compared to September. A total of 1,121 listings came onto the market, showing an increase of 12% when compared to October last year. The truncated mean asking price for these listings was up by 7% as compared to the recent 3-month average to a record high asking price of $689,375 (up 13% when compared to October 2011). This record high was reflected across 4 regions in New Zealand (Northland, West Coast, Canterbury, and Central North Island).

 

Apartments

New listings for apartments in October were up 1.5% when compared to September, with 484 being brought to the market (on a year-on-year basis listings were up 9%). The truncated mean asking price of new apartment listings fell slightly to $398,121 in October from $399,489 in September, but was still up 8% on the recent 3-month average.

The Auckland apartment market followed the national trend with 300 new listings coming onto the market, up 7.1% when compared to October last year. The truncated mean asking price of new listings in Auckland rose again to $382,303 (October) from $366,057 (September) representing a 9.8% increase on the prior 3 months.

 

For Media Enquiries, please contact: Paul McKenzie, Realestate.co.nz | +64 21 618 537

Notes:

Truncated mean

The monthly asking price for new listings presented in this report utilises the measure of ‘truncated mean’. This measure is judged to be a more accurate measure of the market price than average price as it statistically removes the extremes that exist within any property market that can so easily introduce a skew to traditional average price figures.

The truncated mean used in this report removes the upper 10% and the lower 10% of listings in each data set. An average or mean of the balance of listings is then calculated.

 

Methodology

With the largest database of properties for sale in NZ from licensed real estate agents, realestate.co.nz is uniquely placed to immediately identify any changes in the marketplace. The realestate.co.nz NZ Property Report is compiled from new listings coming onto the market from the more than 1,000 licensed real estate offices across NZ, representing more than 96% of all offices.

With an average monthly level of over 10,000 new listings, the realestate.co.nz NZ Property Report provides the largest monthly sample report on the residential property market, as well as a more timely view of the property market than any other property report. The data is collated and analysed at the close of each month, and the Report is compiled for the 1st day of the following month. This provides a feedback mechanism as to the immediate state of the market, well in advance of sales statistics, which by the very nature of the selling process can reflect activity with a lag of between 2 and 4 months.

 

Seasonally adjustment

The core data for the NZ Property Report is seasonally adjusted to better represent the core underlying trend of the property market in NZ. In preparing this seasonally adjusted data Realestate.co.nz is grateful for the assistance of the New Zealand Institute of Economic Research (NZIER) who use an X12 ARIMA methodology to calculate seasonally adjusted data.

 

Background to Realestate.co.nz

Realestate.co.nz is the official website company of the real estate industry of New Zealand, it is an industry owned web business providing online marketing services to the real estate industry. The shareholders in the business comprise the REINZ (50%) and five of the largest real estate companies (50%).

The business operates a portfolio of websites all focused to specialist sectors of the real estate market:

Realestate.co.nz is the heart of the business and is focused to the residential property market. It features the most comprehensive selection of property for sale and rent across NZ. The website attracts a significant monthly audience of over 450,000 unique browsers, with over 115,000 of those visiting from countries outside of NZ.

In addition Realestate.co.nz receives over 25% of all traffic to property listings from mobile devices, including their iPhone and Android applications. To date these applications have been downloaded by over 117,000 users making the app the most popular property app in NZ.

nzFarms is a specialist website presenting the most comprehensive selection of farms and agricultural businesses on the market across NZ. At this time it features around 5,000 listings for all types of farms and agricultural land as well as over 11,000 lifestyle properties.

Prime Commercial is a specialist website presenting the most comprehensive selection of commercial property for purchase or lease on the market across NZ. At this time it features over 27,000 listings for all types of properties – retail, commercial, industrial and investment properties.

Prime Business is a specialist website presenting the most comprehensive selection of businesses for sale on the market across NZ. At this time it features over 4,300 listings for all types of businesses – retail, tourism, wholesale as well as franchise opportunities.

The web business of Realestate.co.nz site is the most comprehensive real estate web operation in NZ, currently hosting over 110,000 listings, covering this portfolio of residential property for sale and rent, commercial property for sale and lease, rural properties and farms, as well as businesses for sale. With a subscriber base of over 1,000 offices, the company represents over 97% of all listings from licensed real estate agents in NZ.

The full NZ Property Report for October 2012 can be downloaded here (1.5MB pdf document). Additionally the raw data is accessible here as an Excel spreadsheet enabling anyone to analyse the raw data and establish any trends or observations.

Usage rights are governed under attribution to the source of the data being Realestate.co.nz. The next NZ Property Report for November 2012 will be published on this website on Monday 3rd December 2012 at 9am.

By Paul McKenzie, Marketing Manager, Realestate.co.nz

1

Nielsen survey shows surge in homebuyers using mobile

The free mobile app created by Realestate.co.nz that gives users real-time, location-aware information about homes for sale and rent has now been downloaded over 100,000 times. The milestone coincides with the release of the 2012 Nielsen Real Estate Market Report, which shows a huge surge in homebuyers using mobile property search applications on smartphones.

The report revealed that 27 per cent of homebuyers who responded to the survey have used a property search mobile app in the last year, jumping up significantly from just 7 per cent recorded in 2011.

The report also revealed that seven out of ten of those homebuyers are using the Realestate.co.nz app.

The significance of these two factors can’t be understated. It shows the app is truly changing the way New Zealand home shoppers look for and view homes, and how they interact with property and agents whilst on the go. The Realestate.co.nz app gives home shoppers a birds-eye view of any area in New Zealand, showing properties that are for sale or rent.  By simply tapping on the ‘Near Me’ button, browsers are taken to a street map that shows properties within a one kilometre radius of their current location.

The app – available on both iOS for the iPhone and iPad as well as Android devices – has become an essential accessory for Kiwis searching for local properties for sale or rent. And we are aware of several buyers who have found and purchased their home for sale solely through using the mobile app. People are turning up to open homes guided by the app with a schedule fully planned of where they are going and what they are going to check out.

For more information on the Realestate.co.nz smartphone app, visit http://www.realestate.co.nz/apps

By Paul McKenzie – Marketing Manager, Realestate.co.nz

0

Expectation for house price rises, needs to be seen in the context of recent falls

Posted on: August 15th, 2012 | Filed in Buying / Selling a home, Featured

The ASB in their quarterly Housing Survey say that a net 51% of respondents expect house prices to rise, with their expectation of a rise of 4% in the year ahead.

This expectation would see a continuation of price rises which have been seen since the beginning of 2011, 18 months ago. At that time the Stratified mean price (as published by REINZ in association with the Reserve Bank) was $351,450, in July of this year it was up to $380,425 a rise of 8% over 18 months which equates to an annual rise of 6% which makes the ASB forecast an logical extrapolation of the current trend as seen in the chart below.

A increase of 4% would see the Stratified mean price rise to $395,650 which would see it a 4% increase from the peak of the market in November 2007 – certainly a 4% increase over 5 years does not keep in line with inflation, in fact it shows a 10% decline in real dollar terms.

The following charts track the latest Stratified mean sales price across the 3 main centers. The Auckland market has already seen Stratified sales prices break through the prior peak of the market back in July 2007 and are now some 4% ahead of that level. The same is seen in Christchurch were prices are up 3.5% on the October 2007 peak. Wellington though is going against the trend where the current Stratified mean sales price is down 4.2% from the peak of October 2009 which was only marginally above the peak of September 2007.

 

2

NZ Property market outlook continues to brighten

Posted on: August 13th, 2012 | Filed in Buying / Selling a home, Featured, Market News

The latest data released last week by the Real Estate Institute for the month of July shows that the property market is reasonably active. That is the best description “active” rather any inference of a boom – Helen O’Sullivan the CEO rightly stated that “the current market should be seen as recovering rather than ‘booming’”.

The fact is that sales of properties across NZ in July were up 20% as compared to the same month last year with 5,907 unconditional sales booked in the month by licensed real estate agents. The first 7 months of 2012 has seen 42,464 sales as compared to 34,511 for the same 7 months of 2011, an increase of 23%. The chart below tracks the annual trend of sales growth or decline over the past 5 years. Having had 15 months of yer-on-year increases we are at that stage of seeing increases on increases on a year-on-year basis which really shows a strong trend.

The most important perspective to appreciate when examining the scale of property sales as a measure of the overall market is the historical backdrop. The chart below tracks the NZ property market from 1993 to date, measuring on the red line the 12 month moving total of property sales using the right hand axis. The blue line shows the total value of transacted sales tracked on a 12 month basis with the left hand axis scale.

 

The key take-away from this chart is just how low the property market fell between 2007 and 2009 – 105,00 down to 55,000. The current 12 month average is tracking at 69,000 with an expectation of 72,000 by the end of the year. This total now marginally surpasses the “dead-cat bounce” mini-peak of January 2010. In terms of the value of transactions this is now running at an annualised rate of $30.64 billion up 40% from the lowest point in February 2009 at $21.91 billion.

The other perspective on property sales is to reference sales to the existing stock of houses in NZ. The key factor here is just how slow new house builds have been over recent years, having said that the current estimated stock at 1.56 million is up 14% since 2000 the equivalent of an extra 189,000 homes. The chart below tracks the percentage of houses sales on an annualised basis against the stock of houses.

 

I think this chart more than any other ably demonstrates that the NZ Property market is in nothing like in a boom – the current rate of sale equates to 4.5% of all dwellings per year far below the long term average transaction level of 6%.  The market is staging a recovery as the general population regain a sense of confidence in the general economy and are clearly being influenced with what are very attractive interest rates. However we would need to see another year of 20% growth on top of this year’s 20% growth before we would be anything like approaching the long term average level of sales.

 

0

Auckland property market continues to heat up

Posted on: July 4th, 2012 | Filed in Buying / Selling a home, Featured, Market News, Regional News

At the half way point in the year the data keeps on reinforcing the fact that the property market activity in Auckland is firmly on the rise.

Barfoot & Thompson – Auckland’s largest real estate company reported its June sales at 994 sales in the month, up 14% on June last year. The first 6 months of this year has seen Barfoot & Thompson sell 5,602 properties, up 18% over the same period last year.

The chart above certainly shows that 3 of the past 4 months have seen sales reach significant new highs. If you exclude the April month (which seems abnormally low) the total for March, May and June represents 3,405 sales up 20% on the same 3 months of last year – some very strong growth for Barfoot & Thompson.

Naturally being the largest real estate company in the Auckland market tends to see their data reflect the overall regional performance and this is certainly the case based on the more comprehensive REINZ data – the recent Property Pulse factsheets for Auckland (Total region, North Shore, Central, Manukau, Waitakere) provide this deeper analysis.

As has been reported in the monthly NZ Property Report the inventory of property for sale in Auckland has been falling for many months and now sits at a 4 year low. This is a function of rising sales, however the rise in new listings has not been keeping pace with sales. Taking Barfoot & Thompson data, again as stated earlier the first half of the year has seen a sales growth of 18% – the rise in listings for the same period showed only a 7% growth. The monthly data of new listings for Barfoot & Thompson is shown below.

This situation of new listings lagging the growth of sales can best be seen when stacking up the two sets of data (sales & listings) on the same chart. The data used in this chart below is the 3 month moving average and I have split the axis to emphasise the significant gap appearing between sales and listings – a situation not seen before over the past 5 years of data.

As Barfoot & Thompson cite in their market report this shortage of properties for sale, with buyers being quick to commit, (is) pushing up prices to an all-time high of $589,251. The chart below tracks this trend over the past few years and using a trend line certainly provides a guide to the scale of this trend.

 

 

0

Seven tips to selling your house

Posted on: July 3rd, 2012 | Filed in Agent Tips, Buying / Selling a home, Online marketing

Buying and selling a house is not, and should not be considered an art – such an important investment / asset should deserve the value of scientific and mathematical analytics.

“Seven tactics for selling your home”  (Redfin – a US based real estate company) outlines facts borne of scientific data and analysis that should be read and understood by all property owners and agents alike. The data might be from the US, but the relevancy to NZ I don’t think would be disputed. Applying a local interpretation provides this summary.

salesperson.jpg

1. Don’t overprice your property – clearly the age old dilemma of the vendors expectations being beyond the rational desire of the buyer to pay what they believe the property is worth. But did you know the impact of a protracted sale on the ultimate price?

2. Set your price to show up in web searches – as cited in an earlier post “So what price is that property on the site” pricing to search criteria on websites is critical

3. Best day to list a property – the US research says the best day to list is Friday, classically this is when the weekly magazines come out, but did you know that most searches on realestate.co.nz are undertaken on a Monday lunchtime – listing on the weekend with an email alert on Monday morning can coincide with the peak searching at work on Monday mornings

4. Stay engaged – pretty logical as your property is your most valuable asset so applying the time to the selling process would be a good investment in your time

5. Market the property online – with over 80% of real estate searches starting online this is logical. Added to this is the fact that each listing on realestate.co.nz is viewed for an average of 77 minutes per month; with the website recording well over 100,000 hours of viewings per month by over 240,000 unique viewers

6. Don’t move out of your house when selling – the US research shows a reduce price results as a perception of a distressed vendor

7. Don’t list when others around you may be suffering mortgagee sales – a panicked marketplace is not the time or the place to sell

Clearly there are many more – presentation, decoration, photography etc etc, but it is compelling to see the statistics supporting these key 7 tips.

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