Mortgage interest rates continue to currently remain low, with a range of 4.45% for 1 year fixed, to 5.7% for floating.
I find it interesting to look back over the last 50 or so years and make comparisons. These are very general and approximate.
1966 6 %
1977 11 % and climbing
1987 20.5% I was paying 23%!
1994 7.4% low point
1994 – 1998 mainly over 10%
1998 – 2007 mainly under 10%
2007 & 2008 over 10%
2009 – 2017 under 7%, and under 6% recently
From 1976 to 1992 (16 years) mortgage interest rates were over 10%, and from 1980 to 1991 (11 years) they were over 14%.
Enjoy these low interests rates while they exist.
There were 40 house sales through all Real Estate Agencies in Feilding in May, which is high. Palmerston North bounced back from 94 in April to 136 in May. The median residential house sale price for Feilding is $315,000 when calculated over 3 months, and $345,000 for Palmerston North.
Median house prices in May, calculated over 3 months were:
Palmerston North 345,000
New Zealand 541,500
Eastern Suburbs Ak 1,550,000
Auckland Total 858,000
Wellington Total 535,000
Many people incorrectly believe that cost equals value when it comes to real estate. When a house is built, the value may be higher or lower than the cost to build, or it may be the same. It all depends on the state of the market.
Similarly, many people incorrectly believe that the value of an older property is derived by estimating cost and deducting an allowance for physical depreciation.
Economic obsolescence, or the lack of it, needs to be taken into account.
This is why value is based upon the sales of comparable properties, and not cost.
The cost to build in Eketahuna and Remuera will be similar. It may even be more expensive to build in Eketahuna because of transport costs. The values will be very different, most of which is accounted for by the difference in land value, but the market may add a premium or a value penalty over and above the difference in land value.
The following extracts are from www.realestate.co.nz .
Of all 19 regions in NZ, Manawatu/Whanganui (M/W) has seen the greatest percentage reduction (-32.1%) in the number of houses for sale from May 2016 to May 2017. By contrast, Auckland has seen a 50.8% increase in the number of houses for sale, and NZ a 4% increase.
M/W showed a 2.8% increase in average asking price in May 2017 compared to April 2017, 4th highest behind Otago 6.5%, Canterbury 4.3% and Marlborough 2.9%. The NZ average was a decrease of 1.1%. The average asking price for the M/W region was $327,422, which was the 4th lowest behind Southland $267,697, West Coast $288,197 and Gisborne $315,480. Auckland sits at $962,196 and NZ at $682,157.
If no new listings came to the market in M/W, all existing listings (inventory) would be sold in 15 weeks, which compares to the long term average of 36 weeks. Wellington has an inventory of 7 weeks, Auckland 22 weeks and West Coast 105 weeks.
In order to maximise your selling price in the real estate market, it is worth putting some effort into the presentation of your property, especially at this time of the year.
We have achieved many outstanding sale prices in this market for our clients, and in most cases presentation has played a significant role.
Start with first impressions. What does the buyer see when they pull up outside the property? Up the driveway or path? At the front door? In the entrance hall? In the living rooms?
Kitchens and bathrooms should be immaculate. Hide your personal possessions (clutter) away. Mow your lawns, weed your garden, deal with any water ponding, make sure that your deck and patio are not slippery. touch up your paint work. Get rid of dust and cobwebs and vacuum the floors.
You might want specific advice on whether certain improvements are worth doing or not. Just give me a call. My advice is free and is without obligation.
The official REINZ median commenced in 1992.
From my Father’s old sales book I have the approximate median for 1970.
1970 $ 7,000
1/1992 $ 84,000
The median value has increased approximately 45 times in 47 years, which I think is rather impressive. It has doubled nearly 5 ½ times in 47 years, or every 8.5 years on average.
There were 32 house sales through all Real Estate Agencies in Feilding in April, compared with a very high 44 in March. Palmerston North dropped from 155 sales in March to 94 in April. The median residential house sale price for Feilding is $312,500 when calculated over 3 months, and $338,000 for Palmerston North, making a nonsense of headlines a month ago saying that Feilding values had passed Palmerston North’s.
Median house prices in April, calculated over 3 months were:
Palmerston North 338,000
New Zealand 529,000
Eastern Suburbs Ak 1,600,000
Auckland Total 850,000
Wellington Total 530,000
Tania Osborne and I have recently achieved 6 sale prices between $70,000 and $90,000 above relatively new August 2016 Rating Values, for Feilding houses. We have some similar results currently under contract.
Looking through the sales results for the town through all Real Estate Agents, I note that most properties are selling for more than their Rating Value, but not all. There were a few sold at less than the Rating Value, and many sold at a very modest amount above RV.
We are finding that the better presented properties are selling better than poorly presented properties.
The market is divided into quite different segments, with very different types of Buyers, and quite different Buyer behaviour.
This shows that it is crucial that you obtain quality appraisal or valuation advice when selling, in order to maximise your sale price. In addition to the appraisal advice, the method of marketing is important which we can advise on, and so is presentation advice that we can also advise on. Don’t risk under selling.
There were 44 house sales through all Real Estate Agencies in Feilding in March, which was very strong indeed. Palmerston North was also strong with 155. The median residential house sale price for Feilding is $311,250 when calculated over 3 months, and $324,125 for the month of March alone. It was $240,000 in August 2015! Auckland was very active again in March after 3 quieter months.
Median house prices in March, calculated over 3 months were:
Feilding 311,250 Palmerston North 333,000
New Zealand 518,000 Eastern Suburbs Ak 1,570,000
Auckland Total 890,000 Wellington Total 512,000
Levin 249,990 Whanganui 187,500
Rangitikei 180,500 Pahiatua 159,000
When I came back to Manawatu in 1983 and worked in real estate and property valuation, it is fair to say that the main reason that outsiders purchased here, was because it was cheap. If asked where a local came from he or she tended to look at the ground and mumble “Feilding,” in the hope that no-one heard. Local pride was low. Feilding was a potentially dying rural town, like so many others.
A group of local business and community people realised that if Feilding and the Manawatu District were to grow and prosper, positive change and improvements were required, and it was no use looking outside Feilding and the district for help. We had to roll up our sleeves and make those improvements happen. Feilding Promotion initiated most of the improvements, which involved working with Council and other groups.
Fast forward to 2017, and Feilding is a growing country town, with strong agri business base, it is attractive, and people choose to live in Feilding and the district for quality lifestyle reasons. Many of our residents work in Palmerston North and at Ohakea. We have a quality town and district with excellent growth prospects. We have much stronger property values! People now puff their chests in pride as they say that they live in Feilding and Manawatu District.