Spring is traditionally a time of new beginnings and fresh energy. This year, we had a false start in August (with a definite lift in activity levels). Then, however, the September storms hit – and buyer numbers dwindled again. Now the good weather has finally arrived – the traditional lift in activity levels is again clearly apparent..
Over the last month – the world economic outlook has deteriorated and taken the NZ confidence levels with it. As a result, we continue to see a cautious attitude prevailing with the retail sectors showing subdued activity. The NZ Real Estate market is generally reflecting national confidence levels. However, it has also become a tale of two markets. The main cities are relatively stable with prices plateauing but the provinces are much more subdued with some price drops still apparent.
Whilst turnover volume is likely to stay considerable lower than in the boom days of 2006/7, it is also likely to be well above the dire days of 2008. Most commentators see a steady, stable, normal Real Estate market for some time, with “house prices edging higher from second half of 2011” (Tony Alexander, Weekly Overview Aug26
On the North Shore, listings are at a premium. The normal spring listing rush has not yet come through in traditional volumes. As a result, the market remains balanced – with stock levels normal. This means it is neither a buyers nor sellers market. Last September Barfoot & Thompson sold 184 properties on the Shore – this year we sold 132. The average North Shore sale price, however has increased from $550,167 last September to $599,633 this September.
However, vendors do need to note that the average sale times have drifted out and prices have plateaued in recent months. Purchasers need to keep alert. We are continuing to see some new listings sell within a matter of days, at times with multiple offers. Other homes take longer to sell – often with no discernable logic.
The Barfoot & Thompson Greenhithe office has noticed a considerable increase in activity over the last few weeks – as the sun came out. We have more buyer enquiry and sold 4 properties so far this week.