January 2013 Nelson Property Home Sales Update

Feb 14th, 2013

The Real Estate Institute of NZ, REINZ, released their NZ wide sold (residential selling prices that is) figures a few days ago.

And the chart shows itself thus…. (like usual click on chart for higher res version)

Interesting factoid of the month was the extra activity in the 4 bedroom market, surprising….well in a Nelson way that is, that out of the 8 properties sold, only 2 had their prices published. The other 6 had either PBN, by negotiation or otherwise. Interestingly Tony Alexanders survey of NZ agents will be out in the next few days…..and it will make interesting reading from a Nelson perspective. Anecdotal evidence would seem to hint that even experienced Nelson agents are struggling a bit when it comes to pricing larger family homes ( as in 4 /5 / 6 bedrooms plus) , and are really “leaving it to the market to decide the selling price.”

The report also mentions;

4,933 houses sold in January 2013, an increase of 21% on January 2012 …… and that the National median house price is up 4.2% compared to January 2012, but eases 4.9% from December 2012

…. so in a word balanced I’d say, especially considering to all intents and purposes, it was a holiday month in NZ, and in Nelson a very sunny one at that. When talking about New Zealand wide housing prices for the month, the Institute reported;

The national median house price is up 4.2% compared to January 2012, while the Auckland median price is up 8.1% compared to January 2012. The Canterbury/ Westland median rose 5.8% and Nelson/Marlborough 4.6%.

…. and just to make sure we got back in the top 3 a second time….they brought this figure up…

For the month of January, Canterbury/Westland recorded the shortest days to sell at 31 days, followed by Auckland with 33 days and Nelson/Marlborough with 40 days.

So is it time to arrive in Nelson and get that property at a 5 – 10 % discount to market?

Factor this one from REINZ in first ….

Over the past 10 years the median days to sell for the month of January has averaged 44 days across New Zealand.

Nelson was 40 days in Jan 2013…..I’ll let you do the maths …. plus I’ll let you ponder the thought “… perhaps there is a reason why that’s the case?

Anecdotal wise…..well if last night was any pointer…..hmmm…..

Two agents just from our office in Stoke had individual talked about offers on separately just listed properties, but in correct fashion, the listing agents have insisted, obviously after consultation with their vendors, to have all offers presented next Monday night (ie; after the heavily advertised first Open Home) – would be interesting to see how those first any offers stack up, that’s for sure? (And just to answer the commentators who email me about “mentioning the specifics” … I will here for the first time let you know which properties I am referring to – this one here http://www.summit.co.nz/RR32042 and this other one right here http://www.summit.co.nz/SR32045 )

With a team of over 30 hungry agents just in Nelson – Stoke – Richmond …. you tell me that wasn’t the right decision for the individual property owners interests?

DATA – www.qv.co.nz

Hmmm… seems I’m not the only one?

Quotable Value (“QVNZ”) shows the Nelson real estate market’s SOLD properties on just a gentle “uphill tick” ….. with the passing lane being occupied by the fast ones from Auckland and Christchurch …. actually – just exactly how we like it … nothing too radical there.

Although they’re reporting that….

With the increase in nationwide values no longer solely being driven by Auckland and Canterbury, the increase in values for most parts of the country signals an increase in confidence as well.

…..won’t win any short term fans in the interest rate department.

NZs largest auction site, Trademe, quips in around about here too….

Chart – www.trademe.co.nz

…and shows a bit more nationwide info from their data partner –  Quotable Value New Zealand. Keen property observers will notice the “Average Value” propositions for NZ and where Nelson sits in that matrix. Interesting stuff. If you want a hand to interpret it – hey – you know what to do – pick up the phone.

Nelson is fortunate in that our sales figures aren’t really singled out in the overall picture side of things, but this month the following reference …..

REINZ Stratified Median Housing Price Index
The REINZ Housing Price Index eased 1.0% in January compared with December to sit at 3,488.1. Wellington rose 1.1% in January, while Auckland fell 2.1% and Christchurch 4.4%. For the 12 months to January, the Auckland Index rose 11.8% and the Christchurch Index rose 9.9% compared to the National Index increase of 7.2%. Outside of the main centres, the Other South Island Index was the next strongest with an increase of 3.9% for the 12 months to January 2013.

….does sure hint that even in the Mainland….that last sentence above…..hints that a change could be in the air.