Rolleston Market Update – March 2012.

Hi folks, well it’s that time again. Autumn is in the air but what lovely weather we have been having of late. Let’s hope it continues!

So what’s been happening over the last month in the Rolleston market place I hear you ask.  Signs are still good that the market is on the up with the median sale price for March reaching $435,000.

Number of sales in Rolleston – March 2012

Over the three months to March 2012, there have been 24 sales in the $300,000 – $399,999 which equates to 33% for the same three month period.

However in March there were only 5 properties sold in this price range which may be indicative that prices are certainly on the rise.

Sales by Price Range – March 2012

When we look at the next price bracket, in the three months to March there have been 41 sales in the $400,000 – $499,999 bracket which equates to 55% of the total sales in the same three month period.

In March there were 16 sales in this range and this reinforces my previous point that prices are on the up.

Number of sales over last 12 months – March 2012

You can see by the preceding graph that there were a total of 23 sales in March compared with 25 in February and 26 in January. You could draw from this that stock is becoming hard to come by and this is certainly evident with well priced properties often ending up with multiple people wanting to place offers on the same property.

It is imperative if you are considering selling in such a competitive market, that you do employ a professional to do the job for you. You may think that in such a buoyant market, that it could be really easy to sell it yourself but don’t fall into this trap. There is a lot to be said for employing a professional negotiator to set up the marketing and negotiation to extract the best price from the market place. I won’t give away all my tips on here, but if you call me in to do an appraisal for you, I will show you my negotiating track record and you can be the judge as to whether you feel I could do a great job for you.

Anyway – enough of that and back to the market and the stats. :)

Median sale price over last 12 months – March 2012

When you look at the median sale price and how it has been tracking over the last 12 months, you can see that sale prices are definitely on the rise. There is still high demand for Rolleston property across most price ranges and while demand exceeds supply, we can expect prices to continue to rise.

Well that is it for another month, I hope you find this commentary informative and useful. As always, if you would like a no obligation opinion of the value of your own property, I would be pleased to meet with you and view your property and give you an idea of its current market value. This is of course a no-obligation and free service. So feel free to contact me on my direct dial number which is a free call 2817519 or text me on 0274360837 or e-mail me at sean@kre.co.nz.

Don’t forget to check in next month and if you would like to receive my monthly Rolleston market report via post or e-mail, just text Rolleston stats to 0274360837 with your name, address and e-mail address and I will send you a copy each month free of charge.

 

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Rolleston Market Update for 3 months ended February 2012.

Hi folks, my apologies for not posting any updates for a while, I have had a relatively busy time at work of late and we have also been getting our house ready to put on the market and are heading to Rolleston to live. So exciting times lay ahead for us this year and I certainly hope that 2012 is a good year for all of you as well. Let’s hope it is a lot less shaky!

Well what’s been happening in the Rolleston market I hear you ask? Demand for homes still seems to be up and with almost every listing I have had in Rolleston selling in the first 2-3 weeks, you would be on the money if you had noticed that houses don’t seem to be for sale for very long these days.

Along with other buyers looking to make Rolleston their new home, there still seems to be demand coming from red zone buyers also wanting to relocate.

No of Sales_Feb 2012 (Click to view)

As you can see from the preceding pie chart 35 of the 72 sales over the last three months have been in the $400,000 – $499,000 range (49%). 22 sales have occurred in the $300,000 – $399,000 range (30%).

No of Sales Total – Feb 2012 (Click to view)

Sales on a monthly basis over the last 12 months have been fairly steady with sales numbers not dropping below 20 since September 2011. The best month has been April 2011 with 33 sales and the next best month was November 2011 with 29 sales.

The first two months of 2012 have seen sales very steady at 26 and 25 for January and February respectively.

Median Sale Price – Feb 2012 (Click to view)

Looking at the median sale price over the last 12 months, as seen in the attached graph, we can see that the median has actually been relatively steady and gradually climbing from $377,500 in March 2011 to $420,000 in February 2012. There was a spike in August/September 2011 due to a larger number of houses selling at the top end of the market than at the mid to lower end of the market.

The following table shows the distribution of sale prices and when you look at August and September 2011, you can see there were clearly more sales at the higher end of the market for those two months which lifted the median sale price for those two months.

Forecast

The outlook is still very bright for Rolleston with good demand only being hindered by a lack of stock particularly in the $380,000 – $450,000 range. With a shortage existing, and with plenty of residential sections coming to the market soon, it would not be at all surprising if some buyers decide to build.

It would be foolish however for land owners to believe that land prices will rise sharply in the short term as the one thing that will keep section prices at a reasonable and affordable level will be the amount of supply. If section prices do rise, we could well see increasing demand for existing residential properties yet again and prices could lift even further. This scenario is even more likely if building prices rise at the same time as land prices as building then could become less affordable for some and will make existing residential a more appealing and affordable.

If you are wondering when is the best time to sell, or want to disuss your options, please feel free to call or e-mail me anytime. 033385924 or 0274360837 or sean@kre.co.nz www.rolleston.net.nz

 

Until next time, thanks for reading and take care.

 

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The Rolleston Market – July to September 2011

Welcome to my latest edition of commentary on the Rolleston market for the three months ended 30 September 2011.

Number of Sales -Sep2011 (Click to view)

The first interesting point to note for September’s dwelling sales is that the number was only 15 compared to August dwelling sales of 26. However to rationalise this number, there have been 226 dwelling sales over the last 12 months in Rolleston at an average of 18.8 per  month so when you look at September’s number of 15 it is only just slightly below average. When you factor in Rugby world cup and some buyer indecision in the market and an election nearing then this is probably to be expected.

Median Sale Prices – Sep 2011 (Click to view)

 For the first time ever, the median sale price in Rolleston reached and breached the $500,000 mark ($519,000). However before we all go getting too excited or disappointed (depending on whether you are looking to buy or sell) it is important to factor in the number of sales and more specifically, as mentioned last month, the number of sales in each price range.

Number of Sales – Sept2011 (Click to view)

Percentage of Sales-Sep2011 (Click to view)

Price Range Sep 2011 (Click to view)

From the above graphs you can clearly see that September saw more sales in the above $500,000 price range than below and as a result we end up with a markedly higher than normal median sale price for the month. When you consider that only 30% of the sales over the last three months have been in the over $500,000 bracket and 70% below $500,000, it would appear that it was just a better than average month for that price bracket and it wouldn’t surprise me at all if we don’t see next months median sale price fall back below the $500,000 mark and back toward the mid $400,000’s again. This will again (of course) depend on the split of sales in each range.

At the time of writing this there were approximately 70 properties for sale in Rolleston so supply is still strong. Average selling times over the last three months are around the 90 day mark so demand is still perhaps not as strong as it could be or simply some properties are going to the market too highly priced at the start and there for taking longer to sell.

Rolleston Sections Oct 2011 (Click to view)

When we look at section sales for the month of September we note that the number of sales also dropped from August ‘s number of 12 to 5. This also needs to be looked at in context though. The average number of sections sold in a month over the last 12 months is 8.25 so it is only slightly below average.

Please note that section sales are only listed in the stats as sales, once they become unconditional and this can only happen once title has issued. I know that in our office, we have contracted almost 50 sections in the last 8 weeks, however none of these will appear in the sales stats until such times as titles have issued. So the section market is definitely on the move. By the way if you are in the market to buy a section, contact me at sean@kre.co.nz and I will put you on our Rolleston section database which gets notified of any new sections and subdivisions that we are involved with.

Median sale prices to Oct 2011 (Click to view)

The median sale price has lifted slightly from $164,0o0 in August to $175,000 in September.  Yet the 12 month median sale price is sitting at $160,000.

Forecast.

The Rolleston outlook is good. The only spanners for the proverbial works could be the upcoming election, and the traditionally quieter Christmas/New Year holiday period. However,  if you are contemplating a move during this period, don’t be put off because with red zone buyers still needing to buy, demand could still be relatively good through both of these times.

As always, for a confidential and no obligation chat about your plans please contact me on 03 338 5924 or 0274360837, or e-mail me sean@kre.co.nz and together we’ll make it happen.

Until next month – take care everyone :)

 

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The Rolleston Market – June to August 2011

Welcome to my first Rolleston monthly market commentary. My aim is to provide a running commentary of what appears to be happening in the market place.

Please refer to the following charts and graphs for the latest stats.

Number of Sales    Percentage of Sales    

Number of Sales – 12 Months    Median Sale Prices

August has been a great month for Rolleston house sales and saw Rolleston sales rise to 25 for the month. June and July sales per month were 15 and 16 respectively. If you compare with July’s figures, the number of sales in Rolleston rose 54% in August. 

The median sale price for Rolleston rose to the $450,000 mark for the first time since February 2011 ($467,000). May, June, & July’s medians were $420,000, $417,500, & $405,000 respectively.

When considering median sale prices it is important to remember that they can be significantly affected by the number of proportionately upper price range properties sold compared to the number of lower price range properties sold.

To illustrate this, I have included a table that details the number of sales in different price ranges from June – August 2011.  Price Range.

From the table you can see that in August there were 19 properties sold above the $400,000 mark versus only 6 below. Whereas in July for instance, 9 sold above $400,000 and 7 below. This could be one reason why the median sale price has risen sharply. The best gauge of what sale prices are doing is to look at the median sale prices over the last 12 months.

 Let’s have a look at section sales.

Please refer to the following graphs for the latest stats.

Last 12 months sales     Median Sale Price

August has produced the best month for the number of section sales over the last 12 months with 17 sections sold. (Previous best was April 2011 with 14)

As could probably be reasonably expected, section sales have been on the rise in Rolleston since March. I see this as being due to two factors. One being that there is an increase in demand from a wide range of buyers including builders/developers and red zone residents looking to relocate and rebuild their lives. The second reason is that more sections have become available for sale and this trend is likely to continue as councils work together with developers to make more land available for red zone residents.

When looking at the median sale price for sections, something unexpected has occurred. The median sale price has dropped to $138,695 from a peak in November 2010 of $177,500. I would not be reading too much into this at the moment as I expect demand for sections in Rolleston to increase in the short term and if the supply of land available is not as quick, then prices and medians, will rise. It will come down to the amount of sections available for sale and the number of buyers looking to purchase.                                              All I can say is watch this space.

Enquiry levels for both sections and dwellings continues to be strong in Rolleston and this is a trend that I think will continue into next year. Sure there may be better months than others but overall I see a positive picture for the Rolleston market.

Things to consider that may have an impact on the market are the coming election and the holiday season. Generally around election time big decisions such as property decisions are often put on hold. However this time around many Cantabrians will not have the luxury of putting their plans on hold. Many red zone buyers may have to move regardless and will continue to look for property regardless of an election result. Again, Christmas can often be a quieter time for property sales, and for the same reason as mentioned above, Rolleston may have a slightly busier December/January than in previous years.

No matter what happens, if you are considering a move, it is advisable to seek professional advice to help you achieve the maximum return out of your property.

It is important to remember that statistics are no substitute for the actual market place, as they show what has happened in the past and are not necessarily a true and accurate representation of what is happening right now, so for a professional no obligation consultation on the value of your property and the best way to showcase it to the market, contact me on 033385924 or e-mail sean@kre.co.nz.

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FOR THE LOVE OF A CHILD!

 

Hi everyone, just wanted to let you all know that on 27th March 2009, & just like we do every year, the Professionals salespeople throughout New Zealand will be out in force in their “Red Jackets” collecting for Child Cancer. 

It is the charity that we are committed to and passionately support. Every sale we make in our office – $5.00 goes to Child Cancer.

Since 1995 The Professionals Group nationally have raised over (Get this!!) $2.9 million for the Child Cancer Foundation. These funds have gone towards the much needed facilities throughout New Zealand, contributing to The Family Place and the National office opposite Starship Hospital in Auckland, and fully purchasing

The Family Place in Wellington, and two Sunshine Lodge Holiday Homes in Taupo & Queenstown.

Our commitment continues.. The impact on a family with a child diagnosed with cancer is horrendous, and every little bit that we can do as an office, a community, and as a nation, helps make the going just a little bit easier. For those that know people that have gone through this, are going through it, or for anyone experiencing for themselves, you will know the huge impact it has on everyday life for the whole family.

The idea of the Sunshine Lodges was to provide a place where families could go for a break. For a chance to unwind without having to worry about trying to find the money to pay for it. It allows a family some much needed time out and away from it all where they can be together, and where they can recharge their energy to continue their battle.

I appeal to you all to help us help them (the children that are inflicted with this terrible condition, and their families). Every little bit you give on Child Cancer Day DOES make a difference and I hope that I have been able to illustrate that with this blog.

We will be out in force at the following locations on 27th March 2009 between 11:00 – 2:00pm

Coutdown Colombo Street, Hillmorton Bakery, Addingtown Mall or Tower Junction, Hornby Mall & Dress Mart, Barrington Mall (outside Warehouse), St Martins Mall, Halswell Shopping Centre (New World & by Post Office), Rolleston New World & Shopping Centre, Funky Pumpkin Colombo St, Beckenham Shops, Warehouse Blenheim Rd, Couplands corner Waterloo & Carmen Rds.

Please note that if we are not at any of the collection points stated above there will be a collector somewhere not far away, so do make an effort, every little bit helps.

Thank you all for taking the time to read this, and I hope to see you out there on the 27th March. (Remember I will be at Countdown Colombo Street) and if you are going to come to any of the locations mentioned above, please do be kind to the businesses that have allowed us to collect there, maybe buy lunch, or do your groceries there instead of where you would normally do them.

It isn’t really much to ask – so please be generous and help make this the most successful Child Cancer Collection Day ever!!

Check out this link for more details about this worthy cause. http://www.childcancer.co.nz/ 

Sean Powell

 

 

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SIX TIPS FOR DO-IT-YOURSELF WORK AROUND THE HOME.

 

Well we are coming into the sunny summer season again and it’s almost time to get out those hammers and nails and do all the jobs you have been thinking about doing over winter.

Well I have to admit that while I am not that handy around the home, I don’t mind giving the odd job a go, and no doubt I will give a few things a go this summer as well.

 

I thought I would write some simple tips for the novice DIY’s amongst us that should help in the planning of any work that may need doing around the property.

 

Hope this is of help to you all, and happy DIYing! :)

 

Sean.

 

 SIX TIPS FOR DO-IT-YOURSELF WORK AROUND THE HOME

 

1.  Make a list:

Spend some time taking stock of the kinds of maintenance and improvement projects you’d like to begin. A well-considered list will help you to set reachable goals.

 

2.  Assess your skills:

Make sure that you carefully consider which projects you are fully capable of completing. For example, unless you have sufficient experience with electrical, plumbing or construction work, you should probably leave those tasks to the professionals.

 

3. Check the regulations.

Be aware that any building/alteration work you undertake around the home must be compliant with all of the current regulations. For a useful guide to what these are check out

http://www.dbh.govt.nz/building-law-and-compliance

 

4.  Establish priorities:

Which projects are most important to you? Which projects will be the most costly? Which is more important: timeliness, quality or cost? Before beginning any do-it-yourself project, it is always wise to determine specific goals and priorities so that you are fully prepared when it comes time to begin.

 

5.  Create a budget:

For each project that you want to complete, make certain that you have a firm budget in place. Allowing for unexpected circumstances (such as errors or the need for additional materials) in your budget will keep you from overspending.

 

6.  One step at a time:

When it’s time to begin, remember to pace yourself! Rome wasn’t built in a day, and your new garden terrace will take time as well. Complete one task at a time, and soon you’ll feel the wonderful sense of satisfaction and accomplishment that doing-it-yourself can bring!

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Price – It’s The Key.

Get your listings priced right and they will still move in this market place. This blog follows on from my previous blog on “Strategies in a Challenging Market” in which I commented that education is crucial to helping our buyers & sellers understand the current market place and where they fit within it.

Part of the education process is to know exactly where your property sits in relation to other (comparable) properties currently for sale. If you are higher than everything else, then obviously your property will help sell the others around you because they will appear to be better value for money than yours. Equally, if your property is priced under the competition, they will make yours seem like better value for money and because of this you are more likely to achieve a sale in a shorter time frame.

For properties that are harder to sell because they are on a main road, next to a railway, transmission poles or wires, or even close to an undesirable property, price becomes even more important. Ask the owners to remember back when they purchased the property and whether they deemed it to be cheaper than other properties around that they had seen at the time, and the answer is often yes. It must also be true then that when they sell the property that the same value must be perceived for a purchaser to forgo the undesirable features of the property and to step forward and buy it.

It is also important that in a declining market salespeople are aware when the median sales price in an area falls and then be the first to adjust their owners’ prices. Often the first cab off the rank will get the best fare. In other words if the median sale price has fallen and you discuss this with your owners and get the necessary price adjustment, and do so before other salespeople and owners become aware of the fall in median price, you will often catch one of the few buyers in the market place. The main reason for this is that every purchaser wants to feel as though they have achieved a value for money deal (and here’s the crunch) – in their perception. They also do not want anyone else to get it.

So even in a declining market good sales volumes and prices are achievable if you keep yourself up to date with the current market trends and be professional enough to make your sellers aware of these trends and give them the option of what to do. If they choose not to listen to sound professional advice, don’t be afraid to let them go. It is better to be working with realistic, educated, and motivated sellers in this market as they are the ones that will probably achieve a sale.

Finally, you must remember that the most important stage of any marketing campaign is the first 2-3 weeks. this is the period when the majority of buyers looking in that area or price range will see the property for sale and make a decision whether to view it or not. It is therefore crucial that the price is right in those early stages. In a falling market it is not acceptable to have the attitude that “we can start high and come down later” because you will forever be chasing the market down. The longer the property is not sold on a falling market, generally the lower it will sell for. So it goes without saying that getting our sellers’ properties sold quickly is certainly important, and correct pricing is essential to achieve that. 

I don’t think that what I am saying is new, but I think it helps just to refocus sometimes and realise what is happening and what is important to your continued success in these tough times.

Posted in Canterbury Real Estate, Rolleston Real Estate | 2 Comments

Canterbury Plains – certainly not plain!

This gallery contains 1 photo.

http://www.flickr.com/search/?q=Christchurch&w=all  I was reading Deon Swiggs’ comments about how beautiful New Zealand is and have to agree! I took the day off on Wednesday and went north up State Highway 1 to a little place called Greta Valley then went inland … Continue reading

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Strategies In A Challenging Market.

I think the most important facet in coping in this market is education. It is crucial that both our buyers & sellers know what is happening in their respective market places by being shown facts and not just allowing our current media onslaught to be left to educate them.

Sellers need to see the “why” when we tell them what we think their house may be worth. The why can be shown by providing statistics of recent comparable sales, current competition in the market place, recent market trends (i.e medians), and the absorption rate in their market (i.e. how many houses are on the market at present divided by the number that have sold in the last 3-6 months.)
It is not simply enough now to say here’s what’s sold and here’s what I think.

In a changing and challenging market we need to step up as professionals and illustrate that we really do know our chosen field inside & out.
I provide all my appraisals with detailed statistics, and the power of showing them what is happening vs telling them, is incredible.
The flip side of this is that they are more likely to list at a more realistic and saleable price if they understand the why. As a result you have a more desirable listing compared to others for sale in the area. This in turn generates inquiry (sales & listings).

Another advantage of knowing these statistics, is that you can make the information available to the purchaser also. If you have a well priced listing, and have the evidenceto back it up, and can show them and not tell them, they are less likely to come in at such a low level with an offer.

We, as salespeople, need to take more responsibility for our own understanding and knowledge of the market and be readily able to demonstrate this to both our sellers and buyers, as this will lead to people wanting to do business with us because they are confident in us and in the market as a result.
I recently e-mailed a purchaser a copy of a market analysis I did for an ownership unit I have for sale. The reply was incredible. She said that she now felt confident to go and purchase in the market place because I had shown her what value was and what it wasn’t. She did not buy my unit, but was extremely thankful for the time I had taken to educate her.
Just a thought!

Happy selling, and for all of potential buyers and sellers out there, don’t be afraid to ask your real estate professional for information on similar sales around the area.

Posted in Canterbury Real Estate, Rolleston Real Estate | 3 Comments