The number of sales in Feilding through all Agents was down a little on March but still a respectable 28. Palmerston North was a respectable 127. The medians for NZ get more extreme as Auckland values continue to rise.

Median house prices of interest are:

Feilding $235,000

Palmerston North $275,000

Levin $175,000

Wanganui $161,500

Pahiatua $137,250

Rangitikei $157,000

NZ $390,000

Dunedin $265,000

Auckland region $550,000

Ak Eastern suburbs $920,000

What is worrying is where our regional neighbours medians are, because of declining population. We must focus on growth in Feilding and the Manawatu!

Kind regards, Michael Ford

In 1936 the level of home ownership in NZ was 50%, and it increased to about 69% in the 1960’s, before dropping back slightly to about 68% in 1971. The level increased again through to about 1986 – 1991 where it peaked at between 72% and 73%. Since then it has fallen, and in 2006 was about 67%. The same approximate pattern took place in Britain since the 1980’s. In Britain in the early 20th Century, only about 10% of people owned their own homes. Part of the attraction of coming to NZ was the prospect of land ownership as a key means of achieving independence and acquiring status.

Student loans have contributed to delaying home ownership, mobile lifestyle choices along with the later forming of couples, later childbirth or couples choosing not to have children have been factors, as has greater ethnic diversity with some cultures prioritising other expenditure ahead of home ownership. The challenge of saving a deposit while paying rent, especially in the expensive parts of NZ, is another reason for the declining rate of ownership.

Kind regards, Michael Ford

We don’t have figures for Feilding, but we can extrapolate from Palmerston North and Wanganui, and the news is very good by comparison!

Where Auckland Central is 87% of one median income to pay the mortgage on a median priced house, Palmerston North is 40.3% and Wanganui is 23.4%. I estimate Feilding to be about 35%.

Where Auckland Central is 90.8% of one median income of a person in the 25 – 29 age group to pay the mortgage on the lower quartile priced house, Palmerston North is 36.8% and Wanganui is 15.7%. I estimate Feilding to be about 30%.

I consider that Wanganui’s index will increase. They had a particularly low median house price in March.

Our Manawatu Wanganui region is the second most affordable after Southland. This is good news for anyone wanting to buy, and especially our first home buyers.

Kind regards

Michael Ford

Kind regards
Michael Ford

Agents must now recommend to all parties that they seek legal advice before signing agency agreements (listing authorities) and sale and purchase agreements. It is up to the Client and Customer whether they decide to follow the recommendation. I consider that it is certainly prudent with sale and purchase agreements, and certainly can be for some people in relation to agency authorities. Some people may not consider it essential.

Agents must explain to Clients when an agency agreement will end. Most of us have been doing this from the day we started, but apparently some haven’t been.

Agents must explain to Clients in writing when there is no comparable or semi-comparable sales data to base an appraisal on. I hope that this rule is not abused by Agents and salespeople avoiding appraisals when it should be possible to produce a reasonable appraisal.

Before an agency agreement is signed, the Agent must explain to the prospective Client that how they choose to  sell their property can impact on the benefits the Agent,  Salesperson or Company receives. We keep it simple and there is no difference with our firm, but every Company is different.

Don’t hesitate to contact me to discuss any aspect of the changes.

Kind regards

Michael Ford

Manawatu had 49.7% males and 50.3% females. Our Maori population made up 13.7%, compared to NZ at 14%.

We had 11,640 dwellings including unoccupied and under construction. Our population grew 2.7% from 2001 to 2006, after dropping from 1996 to 2001. Some dwellings and people went to PN in the recent boundary change. Manawatu was the 41st largest District out of 73 in terms of population, but only had 0.7% of NZ’s population.

23% of our population were under 15, compared to 21.5% for NZ.

12.9% of our population were over 64 compared to 12.3% for NZ. This dispels the myth that Manawatu District is full of older people. We have only fractionally more than the national average, and slightly more children than average.

In 2006, our median age was 38, compared to 35.9% for NZ.

Manawatu’s most noticeable variations from the average of NZ are that we have a much larger percentage of 10 – 14 year olds, and considerably less 20 – 29 year olds, which we would expect as people move away for tertialiary education, employment and travel opportunities. Most other age brackets reflect the national trends.

34.8% of us had a post school qualification compared to 39.9% nationally, and 31.4% have no formal qualification compared to 25% nationally.

Kind regards, Michael Ford

There are no figures calculated for Feilding, but I estimate the % to be in the 33 – 36 range.

Southland is the most affordable region in NZ, followed by Manawatu / Wanganui. Auckland is the least affordable region.

Roost also produce a Standard home loan affordability series which looks at household income rather than one income, and the First-Home-Buyer Home loan Affordability series.

Kind regards, Michael Ford

You would be forgiven for thinking that there are a large number of houses selling. In Feilding, in January, all Real Estate Agents sold 58% of a long term average number of house sales in a month, and in February that rose to 73%. The year has started with less than 2/3 of the average number of houses selling.

Sure, we have sold a number of properties quickly, and there appear to be more Buyers in the market place, but we can’t allow ourselves to get carried away with the media hype about a boom in the property market, which isn’t taking place in the Manawatu. There is a boom taking place in Auckland and Christchurch.

As for values, the median sale price in $ calculated over 3 months for the last 6 February’s looks like this:

This clearly shows that we are still in a market with static values, although I predict a modest increase over the next few years, unless Government interferes to slow the Auckland market, which would detrimentally affect our market as well.

The market is quite good, but let’s keep our feet on the ground.

Kind regards, Michael Ford

They should have confidence that the Agent will achieve the best outcome for them.

The Agent should be good at appraising property.

The Agent should be able to present an excellent plan for the sale of the property.

The Agent should have great negotiating skills.

The Agent should have creative marketing skills.

The Agent should be able to advise on presentation.

The Agent should have local knowledge.

The Agent should have property, legal, contract, construction & town planning knowledge.

The Agent should be proactive and enthusiastic.

The Agent should have a good track record.

The Agent should have good back up from a good Company.

Kind regards, Michael Ford

Firstly, our values are steady, unlike Auckland and Christchurch in particular.

Secondly, our values are very affodable compared with most of New Zealand.

Thirdly, interest rates are very low, and are very likely to increase. We don’t know when.

Fourthly, the Government is considering increasing the equity to loan ratio for mortgages. This would mean that Buyers will need a larger deposit. We all know how hard it is to save a deposit, particularly if you are paying rent. Doubling, or quadrupling the amount needed to save will be impossible for many.This would reduce the number of buyer prospects for Sellers. Properties may take longer to sell, and prices may ease.

Prices may increase however. They may go up, or they may go down. There are many influences on our market currently, including international influences. The likely value movement locally for the next few years is difficult to predict. I am quietly confident of a gradual increase, but if the Government interferes to pour cold water over the Auckland market, all bets are off.

We saw this several times in the past, in the 1990′s, when Auckland and parts of the country were experiencing rising values, and we in our region weren’t, We in our region were penalised by the tool that the Government used to slow the market in the “heated” areas. Our market struggled. Similarly, 2 – 3 years ago the banks required large deposits from Buyers and our market was at rock bottom for activity.

We know the “state of play” right now. Often “better the devil you know.”

If you are thinking of selling, or buying, now could well be as good as its going to get!

Kind regards

Michael Ford