This is an update from QV for the month of January.
From where I was on the ground there seemed to be alot of positives and enthusiasm as the interest rates have come back to record lows and this coupled by the drop in prices making housing affordability more realistic than it has been for many years. Although with the tightened up criteria the banks have been excersing it is making it hard for investors and first home buyers to stay or enter into the market. The fact of the matter is that prices are expected to drop further, sales volume isnt expected to rise by much but interest rates will drop further as the RBNZ tries to stimulate the markets. But there still is very much alot of uncertainty within the market. There are some that see that there are opportunities out there to make positive cashflow out of investments where others think that the market still has to much recovery to go before it will be viable to make any commitments.
My opinion is that prices will continue to fall for most of this year. I feel the mortgagee market is going fuel this downward spiral into proabably the third quarter. This doesnt mean that opportunities are out there because they are and are waiting for any one of us to snap up, and generally they are pretty quickly. If you want some more reason to think why property prices may drop have a look at the housing affordability post on here. As with any market or situation its what you make of it. Here is what the official word is from QV..
Christhchurch Property Trends
Property values in Christchurch decreased by 8.8% over the last year (calculated over the three months ending January 2009 in comparison to the same period last year), deteriorating further from the 8.0% annual decline reported in December 2008. The average sale price for the city decreased slightly from $348,953 to $347,157.
Melanie Holcroft of QV Valuations said; “The change in property values experienced between October and December 2008 showed that the rapid decline could be easing, but these latest figures show that the situation is still worsening. Average sales prices continue to decline; this could be influenced by low sales volumes and the mix of property being sold.”
“There have been anecdotal signs of an increase in investor activity, driven by decreasing property prices and lower mortgage interest rates. In short, if consumers have the equity or available funding it appears to be a good time to buy residential investment property” Ms Holcroft said.
“Overall the market has continued to soften, but at a slowing rate on those levels experienced in mid 2008. Lower interest rates have been slow to stimulate market activity, a pattern usually observed. This is attributable to a decrease in confidence in the employment market and rising food and fuel prices. We expect this pattern to continue for the next quarter” said Ms Holcroft.
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CHRISTCHURCH
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 Waimakariri
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-7.1%
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$310,683
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Southwest
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-8.9%
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$324,962
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Selwyn
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-8.0%
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$360,820
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East |
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-8.6%
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$279,214
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Central & North
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-8.5%
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$410,849
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Hills
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-9.1%
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$448,679
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Banks Peninsula
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-12.5%
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*$388,333
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New Zealand
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-8.3%
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$382,762
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Annual Property Value Change
Average Sales Price
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QV’s January statistics for the residential property market report a 8.3% decline in national property values over the past year (calculated using the QV index over the three months ending January 2009 in comparison to the same period last year), down further from the 7.4% decline reported last month. The average New Zealand sale price for January increased slightly to $382,762. Average sale prices have declined less over the past year (2%) than the QV index, as averages can be biased by the mix of properties selling at that time.
“The signs of a slight recovery in property values we saw at the end of 2008 have not continued into 2009, with the market dipping further. The number of properties selling remains at low levels which is also typical of activity around the holiday period” said Blue Hancock of QV Valuations.
“Declining interest rates would normally stimulate buyer activity, but concerns over job security, and a more cautious approach to lending by financial institutions seems to be preventing this. Many buyers also appear to be holding back in expectation of further property value and interest rates drops throughout 2009” said Hancock.
“Home affordability has definitely improved and there are good opportunities in the current market for those who can afford it, with motivated vendors and decreasing interest rates. We are also seeing more investors returning to the market, seeing better returns from cash flow in the current property market than returns from other forms of investment” said Hancock.
Most of the main centres are once again showing further declines in value compared to 12 months ago. The Auckland area has slipped back to -9.0%, Hamilton to -10.0%, and the Wellington area to -8.5%. Both Christchurch -8.8% and Dunedin -8.3% have also declined further. Tauranga was the only main centre to not decline further, remaining flat at -9.0% compared to last year.
As has been the case for several months, the provincial centres are showing variability. While all areas have values less than 12 months ago, Wanganui ( 4.5%), Nelson (-7.2%) and Queenstown Lakes (-8.5%) have all improved slightly over the last month. Invercargill remains static at -9.1%, while Whangarei ( 10%), Rotorua ( 11.9%), Gisborne (-10.6%), Napier (-9.1%), New Plymouth ( 5.5%) and Palmerston North (-10.2%) have all declined further.
Regards
Deon
February 12 2009 | The Market | No Comments »
Its official. Sales volume is the lowest it has been for 16 years 11 months and the market has never been harder to work. Sellers, Buyers and agents… We are all having to adjust, compromise and accept that the days of the boom are well and truly over. And property prices have in fact in some areas come back 10% and some places maybe more. Negativity is so easy to talk about these days when the markets are depressed. Every day we are all hearing about the Credit crisis, banks bailout, tougher lending, house prices and sales fall, car industry crashes, jobs been slashed, and I could go on for a very long time.
These of course are the reality of today but we have to look in hindsight at whats happened prior to bring this about and the fact of the matter is that too many of us are forgetting about is that from 2000 to 2007 there were 7 years where there was the biggest economic growth this world has ever seen. This created jobs in huge amounts businesses were making money without huge expense and effort, many people bought property and in 4 years sold it for double what they paid for it enabling them to buy bigger and better homes and allowing others to get into the market easily at the time. We were all living relatively good lifestyles and many of us were probably living at a level above where we deserved to be.
Reality has hit home but is this a reason to be scared, freak out and stop doing the economic activities we used to do? NO! It’s a time to consolidate definitely and a time to work smarter and stop being lazy. Do you want to be left behind and watch the ones who take action now prosper in ten years time. Are you going to be the one who says, dam I wish I took action when there was time. I sure hope not. There is no reason to worry, it’s time to start opening your eyes up and see whats happening around you. We have seen a major shift in the market place one which few people really expected, homes and property continue to be bought and sold at new levels every day of the year. There are always people who need to sell, and people who need to buy, and so long as there are these 2 people in the market, property will sell. It just won’t sell at prices that where around in 2007.
Housing prices today right now are in many places at a level that has made homes right across the board more affordable. And in my view the key to selling your property in 2009 will be in the ability to show that your home has the best value for money on the market, and attract the right buyers to it, and when you’re buying and selling on the same market you aren’t gaining or losing any of that market change. Don’t be afraid to step up to the mark and make a move.
There are some very good buys out there now. We don’t know if there will be better buys to come. All we can do is work with what we have now, and there are plenty of people wanting to sell. Plenty of people are wanting to buy. Enquiry on this blog has doubled in the past three weeks and the search terms are mostly about how to find a good buy. If you want to know where a good buy is, talk to a trusted real estate agent. In this market as a seller they are going to be your best help and also for a seller a real estate agent will be helpful in so many ways. Its bridging that expectation gap which the agents do in order to meet everybody’s needs which is so important.
I have a very large social network online and am in constant contact with them. Today I conducted an experiment. On Twitter I asked a simple question. ‘What are your concerns going into 2009?’ 70% of the response I received was positive and about the opportunities that they see coming into play now. The other 30% were concerned about the financial pressures of life. Which person do you think is going to take action and prosper from it.
Take action. Don’t sit by and let things happen before you. If you have a problem, for example you need a job transfer somewhere and you need to sell the house, take action and sell it. Maybe consider a part swap of a possession somewhere else or something else to sweeten the deal to the buyer. These things will work and you will see the results. I believe the time of opportunity is near. But the opportunity is lost if your too late. Be in. Don’t be scared and think of the long term goal. If your purchasing a home today, tomorrow or in the near future good luck. There are some great buys out there for you to snap up and they arent a trick. This is for real. People lived lives a step above what they earnt and now are having to take the hit. This is the opportunities for you.
December 16 2008 | Buyers and Sellers and The Market | No Comments »
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
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May 2008
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$322,500.00
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57
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52
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Jun 2008
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$357,500.00
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42
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47
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Jul 2008
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$342,500.00
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40
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57
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Aug 2008
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$334,950.00
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43
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57
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Sep 2008
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$332,250.00
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34
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59
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Oct 2008
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$310,000.00
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33
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47
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Nov 2008
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$310,000.00
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35
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45
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Now Compare this for the same period 2 years ago.
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May 2006
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$315,000.00
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86
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42
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Jun 2006
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$319,000.00
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82
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41
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Jul 2006
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$298,750.00
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92
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41
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Aug 2006
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$307,000.00
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84
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53
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Sep 2006
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$300,000.00
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77
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53
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Oct 2006
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$327,000.00
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82
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38
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Nov 2006
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$300,000.00
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91
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40
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Dec 2006
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$355,000.00
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93
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43
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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 »
Today QV (Quotable Value) released their November Data on the New Zealand housing market and it’s fair to say that these statistics will have a few in this industry a little happier, but I feel the need to think is there more to it. QV have said this:
QV’s November statistics for the residential property market report a 6.8% decline in national property values over the past year (calculated over the three months ending November 2008 in comparison to the same period last year), the same level of decline as reported in October. The average New Zealand sale price for November dropped slightly to $375,408.
“This month is the first time since August 2007 that the annual change in property values has not dropped further than reported the previous month. Although this appears positive, it is still too soon to say that the market is recovering” said Blue Hancock of QV Valuations.
“While interest rates continue to fall sharply tighter lending criteria may be dampening any immediate impact on the property market. The strength of the Christmas retail season will be a good indicator of public sentiment and how hard the recession is hitting. Many businesses are currently feeling the pinch, and uncertainty over job security will be a major factor in whether people buy or sell property” said Hancock.
“Looking back we can now see that the market peaked in late 2007 then remained flat for six months. Most of the 6.8% decline in annual values occurred during the winter months and we may be seeing signs of a slight spring recovery. House values are now at the same level as March 2007, and remain higher for most people who purchased prior to that” said Hancock.
Most of the main centres are also showing some positive signs. In the Auckland area, property values are down 7.4% compared to the same time last year, which is a slight recovery from the 7.7% decline reported last month. Hamilton City also recovered slightly to -8.5% from -9.0%, the Wellington area rose slightly to 6.0% from -6.1%, Christchurch to -7.4% from -7.8%, and Dunedin to 7.6% from 8.2%. Tauranga was the only main centre to decline further to 8.4% from 7.9%.
The change in values remains variable in the main provincial centres. Whangarei ( 8.0%), Gisborne (-9.6%), Hastings ( 4.5%), New Plymouth ( 6.0%), and Palmerston North ( 9.0%) have all decreased less than reported last month. Rotorua ( 10.3%), Napier (-5.9%), Wanganui (-6.8%), Nelson (-6.2%), Queenstown Lakes (-12.5%) and Invercargill (-7.7%) all declined further.
So what do you think. This is my opinion. I believe we are still to see the true effects of the credit crunch. I don’t think that property prices are necessarily going to drop too much further but I do believe there may be more forced sales and some very motivated vendors with tight credit problems. This will give the buyer out there an opportunity to buy a property for what probably would be considered a good price. I see this trend continuing well into 2009. By maybe the middle of 2009 we might see more activity when the wholesale finance market levels out and debts recovered to a point where banks and lenders can lend credit again on sensible terms.
At the end of the day if you have your property on the market at a price which is reflective of all the surrounding conditions we face today you shouldn’t face to many hurdles when it comes to the business end of selling your home.
December 09 2008 | Sellers and The Market | No Comments »
One of the Reasons New Zealand is popular with people from overseas is our relatively small population and
our very much untouched landscaped. The North Island is more populated and the South is less populated. Although the South Island has the best landscape which has been made famous with the Lord of the Rings Movies been filmed in large amounts on the Southern Alps which is the backbone of the south island.
The land mass of New Zealand is Around 1600km in length and no wider than 300km, almost all the 167,000 sq.km which is slightly larger than the England which has a total land area of 130,410 sq.km
The population in 1996: 3,618,300
The population in 2001: 3,737,277
The population in 2006: 4,027,947
The Estimated Population in 2008: 4,280,000
The total population in New Zealand is approximately half the size of the population of New York, and justover a quarter of the population of London and England has a total population of 60,776,238 (July 2007). As you can see the population of New Zealand has a vast difference to these large populations especially in regards to the area we all live in. This helps New Zealand be a nice and relaxed place to live.
More than a quarter of New Zealands population live in the largest city, Auckland.
Main Cities:
Auckland
1,208,094
Hamilton
184,905
Napier-Hastings
118,404
New Plymouth
Wellington
49,500
360,624
Christchurch
360,765
Dunedin
220,997
Remaining Areas
1,085,613
November 27 2008 | Uncategorized | No Comments »
I just recieved this and have read it in debth and thought it was important to share this with you. It will give you a greater understanding of whats happening to date and what may happen in the future economically.
Tony Alexander (Chief Economist, Bank of New Zealand) States
Sharemarkets have weakened around the world again over the past week with yet more deepening of concern for the global economy over 2009. Forecasters are falling over themselves to downgrade predictions for growth in all economies next year and there are significant downside risks to the New Zealand economy as a result of this. Commodity prices are falling away with Fonterra set to announce a reduction in its forecast payout. The outlook of tourism seems to be getting worse on a weekly basis and redundancies are already being announced in the sector. Given the extremely large number of small companies which operate in the tourism industry the 10% decline in visitor numbers we think will happen at a minimum over the coming year will produce a lot of layoffs that don’t hit the headlines as happened for the national air carrier this week.
The good news is that the Kiwi dollar continues to fall away and for unhedged exporters there is some insulation against the tsunami of weakness developing offshore. A falling Kiwi dollar is also happening at the same time as wholesale interest rates are dropping at an extremely rapid pace. The yield on 90 day bank bills is now around 5.8% compared with 6.4% last week and 7.2% three weeks ago! Over time falls in wholesale interest rates will take retail borrowing costs down to much lower levels but the pace of decline is going to remain heavily influenced by the credit crisis offshore which has pushed up wholesale funding costs.
Petrol prices also continue to decline and are now at their lowest levels since February last year.
Continued extremely high volatility in financial markets is likely over the next few months with downside risks to economic growth that will manifest themselves as New Zealand’s unemployment rate heading towards 6%.
In the Housing Section of the Report it states
It’s almost Christmas time and the housing market is going to go into its summer slowdown. But of course things are already very slow. We learnt last week that in October sales for the month were the worst for any October since our records started in 1988. Sales were 35% down from a year ago and half the level of October 2006.
Over the past year 60,924 dwellings have been sold around New Zealand. This is a 37% decrease from the year to October 2007 and the lowest annual number of sales since February 1992. The speed with which sales activity has fallen away in the past year is quite astounding and it reflects a great number of negative factors coming together at the same time.
The New Zealand economy went into recession in the first half of this year hit by drought, soaring food prices, a 40% rise in petrol prices between July 2007 and July this year, and a high exchange rate with the Kiwi dollar hitting its highest level in 27 years against the greenback in March above 82.0 cents. Finance companies have collapsed locking up the savings of tens of thousands of New Zealanders and withdrawing a source of easy credit for property developers. There was a drought and migration numbers have been running at half the 10 year average in the past year.
Key Forecasts
• Dwelling consent numbers to fall from 24,500 in the year to March 2008 to below 18,000 in the year to March 2009 (annual low point near 16,000 now likely) with a slight recovery to March 2010 then above average activity after that as attention turns to a shortage of dwellings late in 2009.
• Real estate sales falling from 77,130 in the year to April 2008 to between 55,000 and 65,000 come the end of this year then recovering back over 65,000 in calendar 2009 with further growth over 2010.
• House prices down 5%-10% by the end of 2008, flat over 2009, rising slightly over 2010.
If you want to read the rest of this click here
If you want to have this notification sent straight to you, which is a very good idea if you want to be up to date with the market and the state of our economy placed with the rest of the world. This post is only a brief synopsis of the report. So if you want to read more click this link to go to the BNZ sign up page.
November 21 2008 | The Market | No Comments »
A few weeks ago I was thrilled to have posted my 100th post but today my 7 month old blog received its 10,000th Unique visitor and 60,000th view (both on the same day 
I know that there are many bloggers that get this many views every week, but for me, this is a fun milestone considering I only received 20 to 30 hits per day during the first few month (those were the days) and only 6 months ago. My blog now averages between 600 to 800 hits per day and is steadily increasing. I look forward to the 100,000 post milestone. I may even throw a competition for it but in my last post I am giving away free one of my internet products. Anyway here is a little snapshot of the great milestone, although I missed the 10,000 but only by 2.
I have learnt so much since starting blogging. It takes up a fair bit of time and at times frustrating but the rewards have been massive. I really enjoy it now. Thanks to all of you who read this regularly and contribute. I am very much looking forward to my future in the South Island and continuing to make this blog a one place for anyone to come to when they have a real estate question in New Zealand.
Thanks So much.
Deon
November 17 2008 | Uncategorized | 4 Comments »
QV’s October statistics for the residential property market report a 6.8% decline in national property values over the past year (calculated over the three months ending October 2008 in comparison to the same period last year), down on the 5.8% decline reported in September. The average New Zealand sale price for October remained steady at $379,290.
“Property values have declined further in most parts of the country. Activity levels remain unusually low, especially considering that spring usually brings an upsurge in the number of house sales. Poor weather across most of the country, plus the school holidays, probably contributed to this” said Blue Hancock of QV Valuations.
“There appears to be uncertainty in the market, with many buyers and sellers waiting to see any impact from the financial crisis, dropping interest rates and the election before committing to property transactions” said Hancock.
Most of the main centres are showing further slight declines in property values. Across the Auckland area property values are down 7.7% compared to the same time last year, declining slightly from the -7.0% reported last month. Hamilton City’s values have also dipped slightly further to -9.0%, Tauranga to -7.9%, the Wellington area to -6.1% and Christchurch to -7.8%. Dunedin improved slightly to -8.2% compared to the -8.5% reported last month.
There is more variability in the change in property values across the main provincial centres. Whangarei (-8.5%), Rotorua (-9.4%), New Plymouth (-8.1%), Queenstown Lakes (-8.1%) and Invercargill (-4.6%) have all declined further. Wanganui (-6.0%), Palmerston North (-9.5%) and Nelson (-4.9%) also declined further, but only slightly. The year on year change in Gisborne remains unchanged at -10.1%, while Napier ( 4.3%) and Hastings (-5.0%) have both recovered slightly.
What’s happening in Taranaki/Taupo/Wanganui?
What does this all mean?
Well from my view the propert market is tough. Buyers are definately holding back from buying as many have been waiting to see what happens with the economy and the elections. This years general elections were held on Saturday just been and the country voted in a change government which saw National taking a comanding position in the polls. This generally has had a positive spin on the property market looking back in history. But we also have to take into account the present state of the economy not just here but all over the world.
There are good things coming out of this though. Property prices have come back coming back on from a massive increase over the previous 7 years which saw values multiply by 3 or 4 times. But now with the easing of prices this makes property just that little more affordable for the average person to buy – especially firts time buyers.
There are other factors that come into play which to me are going to have a positive spin on the housing market in New Zealand. These things are the interest rates dropping. The OCR has dropped 1.75% this year and is set to fall even more – although mortgage interest rates may stay steady for longer as the costs to the banks for borrowing overseas is still high. Fuel prices are coming down. Crude oil is the lowest its been for 3 years which has seen our petrol prices fall by 30%. Although they could be alot less our NZ Dollar is also low which has ofset some of this. But exporters are now making more money from the drop in the dollar which will stimulate our economy but there is also less demand for many products around the world as the global economy slows down.
Food prices are still high but in the last few weeks the price of milk and dairy products has dropped by 5% which is a direct saving at home. All these things are now letting families have a little more money in their back pockets. On top of all this we have seen the first round of tax cuts from the outgoing Labour Party and the National Party is promising more within the next 6 months. Thats great news for everyone.
I feel that the property market has still got a fair drop to go. Signals point to a smoothing out of the property market but we are not immune to whats happening around the world. We are not out of the dark yet. It will be some time yet before full confidence is returned to the market but if you are in a position of selling and want to move on this is as good a time as any to do it. Because what you have to remember is the capital loss you may have experienced in the last year have been felt all over and when it comes to re buying you will be buying for a less value. This is a time when you make your own destiny and many people are doing well. Its all about how you approach things and the motivated and forward thinkers are making the most of it. Sellers need to be realistic and price according to where the market is in your area. If you dont its a waist of time and money.
If you seriously need to move realise this and act accordinly. There is no point in holding out for a dream price as you may be waiting for a number of years. As an agent I dont like to see people losing but all you need to do is look at the statistics. Look at my recent sales catalogue and other things and this will compare and reassure you of whatis happening. The only thing anyone can hope for is to achieve a fair market price. And thats in any market.
November 10 2008 | The Market | 3 Comments »
The Recent Sales Catalouge is now avaliable to you for FREE by simply clicking the image above. The password to open the document is deonswiggs This has taken a lot of hard work with many hours have been spent updating and getting it right ready for you to see on here. (Updates are done Monthly). The sales are from Westown New Plymouth which is the area of New Plymouth I specialise in. This document shows every single sale from this area dating back to November 2006. Thats two years of sales!
This is great reference document for the people of New Plymouth. It directly compares sales to sales in a pictorial format which can give you a very clear directory of sales. I have found that this document helps the people I let use it feel confident in what they are doing. There seems to be little confidence with some people but by showing that there still are many many people buying houses for a reasonable price it gives a sence of security that the person is doing the right thing.
Take a look. I have put this up for open viewing because I feel its important to make things avaliable to people who need it. I have put alot of time and effort into this and if you do take a look at this document I would appeciate your feedback so I can make improvemtents and make it even better would be appreciated.
Remember this is just for the properties of westown which has approx 2000 homes. So its not a true representation of New Plymouth but a very good cross view.
Password: deonswiggs
November 06 2008 | Buyers and Sellers and The Market | 5 Comments »
QV’s September statistics for the residential property market report a 5.8% decline in national property values over the past year (calculated over the three months ending September 2008 in comparison to the same period last year), down on the 4.5% decline reported in August. The average New Zealand sale price for September was $379,854.
“Indications last month that a more optimistic mood had come over the market have since evaporated” said Mark Dow of QV Valuations. “We are moving into an economic recession and there is plenty of speculation that things will get worse before they get better. Uncertainty about the impact of the global credit crisis, the usual lack of activity prior to an election, and significant tightening of lending policies by the banks is contributing to pessimism in the property market and there is little expectation of any spring resurgence. The requirement to have a significant deposit will take many first home buyers and investors out of the market, reducing demand and putting further downward pressure on prices” said Dow.
Across the Auckland area property values are down 7.0% compared to the same time last year, declining further from the -5.8% reported last month. Hamilton City’s values have slipped slightly to -8.8% and Tauranga to -7.6%. The Wellington area has also declined further to -5.4%, Christchurch to -7.1% and Dunedin to -8.5%.
Most of the main provincial North Island centres are showing further declines in year on year value compared to those reported last month. Whangarei has declined further to -6.6%, Rotorua -6.4%, Napier -4.4%, Hastings -7.0%, New Plymouth -7.0%, Wanganui -5.5%, and Palmerston North -9.4%. Gisborne is the only centre to improve slightly to -10.1% compared to the -10.4% reported last month. In the South Island, Nelson dropped further to -4.0%, Queenstown Lakes to -5.3%, and Invercargill to -1.6%.
What’s happening in Taranaki/Taupo/Wanganui?
The property market in from my perspective is rather interesting and by no means dull. I however am seeing many people sitting on the fence and waiting to see what happens due to current world events. We all know whats happeing in the economic world. The credit crunch, House Prices Falling, Finance companies going under, Banks Closing, Sharemarket drops, Government Bailouts, It all sounds scarey doesnt it. And the reality of the matter is it is. The world is in a tight situation financially and is likely to be for some time. But this doesnt mean that the world is ending.
My best and honest advise if your selling or buying property at the moment use an agent. I am seeing alot of the agents I work with going over and above the call of duty now to work and help people get deals done. They are making sure everything is in order before a deal closes and are following the process to the end. Its fairly tough out there for everybody but we are all in the same boat. Talk to your agents, they are right in the thick of the property market and if they are informed and are good agents I have no doubt they will provide you the best advise for your unique situation what ever that may be. But make sure you look at all your options. When you know all your options it will make the whole process alot easier. Noone likes seeing someone in a tight financial situation. We are here to help.
October 13 2008 | The Market | 4 Comments »
Although August was said to be a very low month in general for sales around New Zealand, New Plymouth found itself still holding up strong. All the stats show that it was a better month than both June and July. Not a whole lot better but could be a signal that things are moving. This can be seen with the average time on the market dropping for the first time this year and also with the median slae price moving upwards. The Stats are as follows.
Median Days Median Sale Price Total on Market Total Sold
August 61 $300,000 951 71
July 69 $285,000 1027 76
June 53 $285,000 1061 69
September 23 2008 | The Market | 2 Comments »
June saw an interesting month. We had the first cold snap which saw a dramatic dive in people searching for a property to buy. Over the last month and even as we are now I only am seeing the same people out there looking for properties. They are eighter the ones that a fishing for a bargin or property investors. I am seeing very few new faces out there. Maybe this will change as we get into the summer.
Here are the Stats as per June
Total Sales in New Plymouth May: 87 June: 69
Properties on Market (approx) May: 1135 June: 845
Days on Market (approx) May: 48 June: 53
Median Sale Price May: $332,500 June $285,000
If you want to see the previous 6 months please click this link.
But as I said above the market has slowed here in New Plymouth considerably. The median sales price fore New Plymouth dropped back a lot. Maybe it is a monthly dip that may correct itself. But something I wish to point out is the number of homes on the market. This had a massive drop and is the lowest amount of homes on the market in over a year. I contribute this to a few things. The colder weather, less people coming to the market and very high number of people withdrawing from the market.
July 23 2008 | The Market | No Comments »
Have a look at these Statistics. After a fair bit of research these are the statistics of the New Plymouth Market for the last 6 months.
Month Total Sales Properties on Days on Median Sale
New Plymouth Market (approx) Market Price
Dec 70 840 34 $293,000
Jan 74 981 49 $311,000
Feb 101 1041 51 $320,000
Mar 62 1292 59 $340,000
Apr 80 1073 43 $307,500
May 87 1135 48 $332,500
As you can see the proportion of sales compared to the amount properties listed has a huge gap. As you can see the median sale price has a lot of variance in it, but in a small market such as New Plymouth and with a small total of sales there are many factors that contribute to any variance in this. Such as a couple of high priced sales or a few low priced sales within any month can swing this either way. But the average for the last 6 months was $317,000 up 3% on the 6 months prior.
But the thing that is evident from this is the amount of properties on the market. After the summer holidays were over it looks as if people put their homes on the market and this just flooded it. If you’re a vendor you have a lot of competition out there and if you’re a buyer you have a lot to choose from.
June 23 2008 | The Market | No Comments »
How is the market preforming compared to recent years, quite frankly not as good. But what do you judge that by. Is that judged by the volume or by the median price or by the time to sell, or by anything else that the experts say. Its hard to gauge and with all the media attention to Real Estate there is a very mixed perception out there about what eactly the housing market will do. But one thing we can say is it has changed.
According to statistics released by the Real Estate Institute of New Zealand (REINZ) recently there were only 4464 sales in April, this was down 45.5% on the previous year. But at the same time the time to sell property in New Zealand has been further pushed right to an average of 44 days where it was only 28 days a year ago. But in New Plymouth the avergae time to sell is 59 days. But in hindsight to this prices have remained steady, with the national median dropping just 1.1% when compared to April 2007.
These figures are really the only thing to go by when we try and assess where our market is heading. The latest newsletter from QV stated that “spring could bring a resergence’. But why would that happen? Well some people say the warmer weather brings more buyer activity which may see a glutton effect in terms of buyers which will increase the sales. But traditionally summer months have more sales volume than winter.
But the way it is now and heading into winter Vendors need to be prepared to be patent. There are a number of things that can be done to bring your property better chances to sell. One is by being realist on the price and getting it right from day one. The times of testing the market are all but gone, buyer activity is the highest in the first few weeks of the marketing as its the new house on the block. If your price is unrealistic you will loose potential interest from buyers. The best way to remidy this is by doing the homework and getting the price right from day one.
But its not bad out there. Overall Sales Volume is way down but prices remain steady. If your a seller right now be patient, stay optimistic and listen to the advise from your local Real Estate Agent.
Keep Warm and Keep Safe
Deon
May 19 2008 | The Market | No Comments »
