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.
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.
Until next time, thanks for reading and take care.