The Christchurch Real Estate Market was alive and well today. Harcourts Grenadier held 18 Auctions today. After all were conducted the results were quite good. 8 properties sold under the hammer, 2 were sold prior and 2 were sold after the property was passed in and it sounds as though a few will be under offer in the next few days. The interesting thing to note is that many of the properties that were been Auctioned today were of the higher end of the market.
This may be good news for the market in the fact it shows that the buyers are still out there and there are still people with money to buy. Sales numbers on previous years are well below what they were so it is still more important than ever to have your property stand out. Targeted, high profile marketing, sound presentation combined with a strong structure and a competitive edge when it comes to the price and you will attract the buyers out there to your property and hopefully the hard work put in will get an offer on the table that if not at an acceptable level you can work with.
The total amount of sales this year has been consistently moving downwards as the economy in New Zealand has been crippled by the global credit crisis. In recent months there has been some relief for us all with interest rates falling, fuel prices falling and tax cuts from the government but these are still not seen to be enough to help some of the struggling families out there as many won’t feel these reductions for many months to come. So the market still has some
The statistics below show the data collected by the REINZ for the Christchurch Central Area (The 4 Avenues) and how much different this year has been to two years ago.
The tables below read: DATE; MEDIAN; TOTAL SALES; DAYS ON MARKET
|
May 2008
|
$322,500.00
|
57
|
52
|
|
|
Jun 2008
|
$357,500.00
|
42
|
47
|
|
|
Jul 2008
|
$342,500.00
|
40
|
57
|
|
|
Aug 2008
|
$334,950.00
|
43
|
57
|
|
|
Sep 2008
|
$332,250.00
|
34
|
59
|
|
|
Oct 2008
|
$310,000.00
|
33
|
47
|
|
|
Nov 2008
|
$310,000.00
|
35
|
45
|
|
Now Compare this for the same period 2 years ago.
|
May 2006
|
$315,000.00
|
86
|
42
|
|
Jun 2006
|
$319,000.00
|
82
|
41
|
|
Jul 2006
|
$298,750.00
|
92
|
41
|
|
Aug 2006
|
$307,000.00
|
84
|
53
|
|
Sep 2006
|
$300,000.00
|
77
|
53
|
|
Oct 2006
|
$327,000.00
|
82
|
38
|
|
Nov 2006
|
$300,000.00
|
91
|
40
|
|
Dec 2006
|
$355,000.00
|
93
|
43
|
You can see quite clearly that the sales volume is below half of what it was two years ago for the exact same area. This is why it is so important to do all the things I mentioned above. The fact of reality is that there are more listings than last year and half the sales. Dont be the one sitting on the market and not selling. Be one of the ones who do sell. It is hard to look at the price from these graphs and compare it in this cross section as it is only a small sample of the market and too much influencial data can skew the data. But below is a graph of the median price for this Christchurch Central (4 Avenues) area. The other thing is the sales stats from the REINZ only show medium not average so many influencing factors can skew the graph over each month.
The market is not completely dead, as I said right at the start of this post there are still properties selling and today we saw a number sell under the hammer which just hasnt been heppening to that extent on a consistent basis for a while now. The feeling I get is buyers are ready to buy but are waiting for that opportunity that they consider a good buy. Most buyers I talk to out there say there is still a lot of room for the market to move. And unfortunately when your in a buyers market these are the words that are going to ring true in many cases. The sales volume for New Zealand in November 2008 were 4297 sales. The next lowest was in August 2008 with 4220. But previous to this years shocking sales volume drop the lowest sales in any given month was a massive 16 years ago when in January 1992 there were 4,427 sales.
Buyers are holding tight, but are still buying in other ways. Its a funny market, one none of us can predict.
There are people out there that can see good buys but so many more are saying they will get better and are waiting.
December 11 2008 | Buyers and Sellers and The Market | 2 Comments »
This short post is really just to tell everyone I am alive and well. I am right now down on the Little Wanganui River catching Whitebait and relaxing. No phone, no email, no people – (hardly). It’s a time to reflect upon life as its been and have a bit of a laugh with the family. Sorry to those of you who have emailed me. I will respond next week when down in Christchurch. While down there I am going to be helping my friend Brendan Burns to get into parliament at the forthcoming elections in November.
Anyway The point of this post is more a symbolic message that I was thinking about when catching these whitebait that are trying so dam hard to get to the top of the river to spawn. If you look at the whitebait they are moving in shoals. You might see 3 or 4 shoals of them at any given time but they are all trying to get to the same place. They are all trying to get to the top of the river. I also looked out and thought look at all the hurdles or traps that these whitebait have to get through before they even get a chance of making it up the river.
I then looked at my own life and thought I am not much different to these whitebait. If I look at my lifeline as the windy river up to the mountains in my case the mountains could mean retirement or heaven (which ever come first). But I look at how my life has gone so far and I think how the whitebait story goes. I have a goal, I have a drive to make me reach my goal, and oh the hurdles and traps on the way are just everywhere. People trying to bring me down, events trying to stop me in my tracks, people trying to scare me onto a different path of life. It’s all there.
But I thought about the whitebait story a little further and into the field of Real Estate. Now everyone in the Real Estate industry has a common goal – whether to sell the house or buy the house you have that common goal. Real Estate agents no matter what the company what to make the sale – so there is a common goal. Just as the whitebait all Real Estate agents are striving for that goal, think of the agent as an individual whitebait. Now when you think about the shoal – that is the company that agent works under. And as I said above you can see numerous amounts of these shoals/companies moving up the river/goals at the same time. All companies do have the same goal. Some of them get trapped some of them go on to make it. Leadership and direction is important at a company level – not an individual level.
Along the way everyone in the sales process – the agent and the client will come accorss hurdles to get through. Some of them big some of them may just be a rapid. And some of them will catch you out and put a stop to the deal. But just as the whitebait they keep trying and keep coming. So if you do get stuck on a hurdle that throws you off don’t be too hard on yourself. The whitebait doesn’t. It just keeps going. It has a clear goal and it wants to make it. If we all had the determination of the whitebait we would all be very successful and happy in life.
I think that if you look at this whitebait story the main lesson I learnt it’s not just about you it’s about your team. No matter how strong you are and good you are if your team or company get caught you’re going to be caught with them. Translating this to Real Estate it is important to work with someone in a good team or company. A strong team or company will get you as a seller or buyer easily through the hurdles of the selling process and have a successful outcome.
October 24 2008 | Buyers and Sellers | 4 Comments »
Do you want to have a quick sale and get as much for your property as you possibly can? In this market they both sound like farfetched goals. But with a little knowledge of what buyers want, and getting that right from day one as well as pricing competitively you should be able to achieve both these goals.
How can a buyer get interest for purchasing your house you might ask? Impression is the keyword. You just need to get your house ready to sell by doing some preparation so that the first impressions count. But you might be asking yourself how I do this. What things do the buyers look at? Well here are a few things that may help you to get your house ready.
· Beautify Your Exterior
The goal is to make your exterior look pretty and fresh to impress your buyer. The exterior becomes the first impression to the buyer when looking at your house. People can get a good impression on how you look after your house from looking at exterior and gardens. There are two sensory organs of a buyer you must impress. Those are eyes and nose. You can do this by bringing the garden to a homelike condition, making it look pretty and freshening it up. The steps you can do are:
- Get the grass, trees, flowers, and plants tidied and freshened up by mowing and watering it. Of your garden is cluttered or if you have large trees shading areas of the house consider trimming or taking them out.
- Clean up the curb and entering path and put the potted flower in the sides.
- Freshen up the smells by putting scented potpourri or having some potted plants with pleasant smells around the entrance to the property and the house.
- Clean up all of the windows, window sills, guttering and entering doors.
- Get rid of equipment and household junk/clutter and put it out of sight.
- Paint the walls if necessary and if the roof needs paint definitely do that.
· Make the Interior Cosy
After a buyer has got the feel of your house from the exterior they will go inside to have a look in there. You can do some simple work here to get the house feeling cosy and liveable. It aims to make a buyer feel homelike buy entering your house and make them feel at home. If a buyer can feel at home in your house they will probably buy it. These are some of the things you could do:
- Clean up the hard floors; scrub it if there are some bad spots.
- Get rid of spider webs from your ceilings and any fly much from any walls or light bulbs.
- Wash the carpets with a fragrant soap so that they look clean and newer.
- Get your furniture arranged tidily and gets rid of any unnecessary furniture so that your home feels bugger.
- Brush the closets and decluter them. Fold the linen and have coats hanging in some order.
- Clean the garage, basement, and attic. Make sure there are no foul smells and or dampness.
- Open your windows and clean them and the sills, it will bring freshness to your house inside
- If you have pets, bath them and clean any fabric material they may have come in contact with. Remember that we need to please the buyers nose as well.
- Put some fresh fragrance in the house, those plug in fragrance things are great.
- Some Repairing and replacement may be necessary. If there are some things that need to be repaired do them. You will know what they are, some of them are: cabinet handles, ceilings, ventilation filters, broken tiles in bathroom and kitchen, light fittings, wallpaper, some furniture and many other things that you could think of.
Last of all Get Your Friends’ Opinion
Assume some friends are like a buyer, and get some advice and suggestions to make your house get ready to sell. Your friends if they are honest with you will tell you how it is with your home. They may see things that you miss. As a home owner there are always things you will take for granted. They will be able to tell you of the things you may have not thought of. Consider also hiring someone to come in and set up professional furniture, i.e., stage your home.
Seek the advice of your local realtor. They will be able to then give you advice on any other things that you and your friends may have missed. Some of these things vary depending on location as buyers may have different reasons to buy in different areas. The other advice they can give you is an idea of where your property sits on the market in terms of price because as I said at the beginning the price is just as good as your presentation. The local knowledge that your local realtor holds is something that you should always listen to. Just remember that any advice they do give you is to try and get your house sold.
When it comes to selling your house if you aren’t going to do a makeover these tips will get your home ready for the market in about a month or so. Having your home looking its best in the condition it is in is all any buyer can ask.
Happy Selling.
June 30 2008 | Sellers | No Comments »
Selling your first home can be a nerve-wracking experience. When buying your first home, it’s normal to be a bit scared – but also excited & with plenty of plans for the future. However, when it’s time to finally sell your largest investment, many sellers are filled with questions and doubt. Will my home sell? How should I price it? What do I need to do to make sure it’s in showing condition? When it’s time to sell your largest investment, you need sound guidance & advice. Follow these tips to your first successful sale.
1) What Was Once Your “Home” is Now Your “Property”
It’s normal to be emotional about your home. You’ve celebrated holidays, entertained friends & family, & hopefully have great memories in your home. However, as soon as you’ve made the decision to sell your home, it now becomes a financial asset. It’s no longer your “home,” it’s now your “property.” As hard as it is, try and remove any emotion from the sale of your property.
2) Location, Condition, & Price
How quickly & successfully you can sell your property boils down to location, condition, & price. There’s not much you can do about location. However, you have the perfect opportunity to make sure your home is in great showing condition, and you have full control over the asking price of your property. Make the right decisions over what you can control – condition & price – and you should be able to successfully sell your property in a reasonable time.
3) Forget How Much You Paid For Your Property
What you paid for your property has little to no effect over its present value. The most important factors to your property’s present value are the comparable homes that have sold within the last 6 months. This can be a little hard for some sellers to swallow, because it’s something you have no control over. However, understanding this fact is key to successfully selling your home in a reasonable amount of time.
4) It Doesn’t Matter How Much You Spent on Improvements
Improvements to your home do play a big part in your home’s value, but the amount you spent on those improvements doesn’t mean much. If you spent $1000 on materials for wood floors, and installed them yourself, that doesn’t mean that your home is worth only $1000 more. Conversely, if you significantly overpaid for improvements to your home, it doesn’t mean that your home is worth that amount more. Again, market value plays the biggest factor. If homes with wood floors typically sell for $5000 more in your neighborhood, your home is worth $5000 more than comparable homes without wood floors.
5) Consult a Realtor ASAP – And Focus on Service
Once you’ve made the decision to sell your property, contact a reputable Realtor as soon as possible. Interview Realtors until you find the agent who is right for you – it might take one listing presentation, and it might take many more! While it is important to take note of the marketing fees each agent will charge, focus your attention on the services an agent will provide. Selling your home can be stressful, and you want to make sure that the agent guiding you through the process will provide you exceptional service & communication throughout the transaction.
6) You Get One Chance to Make a First Impression
Property condition can help you immensely when selling your home – and it can also be as big a detriment. Make sure & improve your property as much as possible – within reason. Touch up any necessary paint, de-clutter your home, plant fresh flowers, & make sure your home has a pleasant aroma. Your Realtor should help you with sound advice to get your home in top showing condition.
7) Relax
If you’ve priced your home correctly, made sure it’s in good showing condition, & hired the right agent, you should sell your home in a reasonable amount of time. However, you’re still at the mercy of the market. Relax, maintain your home’s showing condition, & adjust the price if market conditions & feedback call for it. Pay attention to average days on market, but don’t become too distraught if it takes a little longer to sell your property. You’ve done all you can to successfully sell your property, and it surely will!
April 22 2008 | Sellers | No Comments »
1. Just because you love it does not mean everyone else will. This is the biggest and most common mistake. Ensure your property appeals to the broadest buying public, which means neutralize. If the colour palette or decorating style is too far out, people will be put off by the “personality” of the home, and it will be difficult for them to visualize themselves and their own belongings in the house.
2. Closets and pantries are crowded and cluttered. Edit each storage space of excess or seasonal items to make sure the viewers can see the space. Crammed spaces give viewers the perception that there is not enough storage space and that the house is bursting at the seams.
3. The furnishings are too big or there are too many for the space. Edit, edit, edit. The corners of the room need to be seen so remove extra or over-sized plants, fans, gym equipment, chairs and tables.
4. “Clean” means different things to different people. It may be common sense to some, but the best way to maintain the value of your single largest investment is to follow a regular cleaning schedule. When your house is on the market, it has to be clean and ready for showing every minute of the day.
5. You love your pet so everyone else will – right? Wrong. Some potential buyers are really adverse to animals of any kind, and that means that any evidence of pets will deter them from showing interest in the property. If you have pets, vacuum daily to keep the hair under control and crate them or remove them from the property while it is being shown.
6. Hide damage to flooring, counter tops, walls or other permanent fixtures. This is a big no-no. Reveal – never conceal – problem areas, and be sure to reflect any deficiencies and necessary repairs in the list price.
7. Forget about safety and security. Strangers will be coming into your house. Keep your personal safety and security in mind. Gun collections and the kitchen knife block present a major safety hazard. Pack away these items, as well as precious items and jewelry, while the house is on the market.
8. Designate a space above grade as a storage room. Potential buyers want to know exactly how many bedrooms are available, and using a room above grade for storage will negatively impact their perception of the house. Use spaces in the basement for storage.
9. Leave dated or worn fixtures for the next owner to replace. The best way to increase equity in your house is to implement periodic upgrades. The simplest and least costly upgrades include light fixtures, taps and faucets, door and cabinet hardware, and drapery and window treatments.
10. Rush to put the house on the market before it is presentable. Selling a property requires strategic thinking. First, identify the competition then make your house present better than any house currently on the market. Care and attention to the details will impress potential buyers, and if the house is “move in ready” then that means less work for them and possibly a better offer for you.
April 22 2008 | Sellers | 1 Comment »
