We always like it when others agree with us!
Quotable Value, in their monthly press release, have reiterated what I said recently in this blog. That is, tenders are changinging the face of the market, while stock is short.
Here I quote them:
“The continued shortage of properties is leading to a continued
imbalance in the market with more buyers than available properties.
As a result our Valuers are seeing many properties sell for well above
their expected values. These demand-based price increases are likely
to continue until the balance in the market changes. This will happen
either when more properties come onto the market, or when buyers
consider prices to be beyond their affordability and as a result consider
other parts of the market, or resolve to continue their current living
arrangements” said QV Valuation Manager Glenda Whitehead. “The
lack of strong spring activity could be due to several factors. Many
owners will have locked in to lower long term interest rates at the
beginning of the year and will be concerned about losing those rates if
they sell. Having made the decision some months ago to stay put, they
may now be extending or renovating and no longer be considering
selling” said Whitehead.
Tenders effective in current market
Pieter Geill of QV Valuations said: “The shortage of listings in Wellington
continues. The traditional spring resurgence which we would normally
see at this time of year is still holding off and is putting upward pressure
on prices. Good homes are attracting competition amongst buyers,
especially at tender which seems to be an effective sales method in this market”