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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