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.

This entry was posted in Canterbury Real Estate, Market Facts, Market Update, Rolleston Real Estate and tagged , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *