Friday, the REINZ (Real Estate Institute of NZ) released the official figures for home sales for the month of Feb 2010.
They commented;
The national median for days to sell in February was 46, up three on the January figure, but still 16 fewer days than the corresponding period a year ago. Sales were quickest in Wellington and Southland at 32 median days.
In light of that though, tis interesting to note that from a Nelson Council zone house perspective, our 2 bedroom sales for the Feb month saw a days to sell of just 29 days, while the 18 x 4 bedroom homes sold in a median time of just 24 days.
(CLICK ON ABOVE for larger version)
That certainly reflects what we have been seeing on the ground, however in so saying that was contrasted by the median of 64 days for 3 bedroom homes. In calculating the median though, its more a reflection of the fact that some February sales were older “on market” properties that weren’t “in the market” until last month.
In their report on Nelson Council zone homes, the Institute said officially;
74 houses sold in Nelson City in February (January 2010: 61; February 2009: 86). The median price increased to $352,250 (January 2010: $315,000; February 2009: $320,000).
The median price for a Nelson Council zone house was up at $358,750 in February (January 2010: $342,000; February 2009: $330,000). 140 houses sold (January 2010: 111; February 2009: 160).
Sections tapered off, with only 4 changing hands in Feb 2010. Their median price was a quite low figure of $130,000, whilst the median size was 997m2.
Again like last month, NZ’s national sales trends don’t really offer any real pointers to predicting which direction our local market is moving, certainly not in a decisive way.
If anything it’s more of a “leveling out situation.”
Also like last month, and still illustrating our predominantly family market, 37 x 3 bedroom homes sold, taking a share of 50% of the homes sold for the month.
And its good to see so much green return again, especially after last months chart, which the REINZ hinted at in their opening statement of the latest Home Sales report;
Total residential dwelling sales recovered last month from their lowest level in nearly two decades, but the national median price has remained steady at $350,000
Its also a point to note that Nelsons median (Feb2010 $358,750) does track quite close to the national New Zealand figure.
Tonight’s Weekend edition of the Nelson Mail has the craft and its operator Craig on the frontpage.
You might be familiar with Model Remote Controlled helicopters, but I bet your one, unlike Craigs Skylark & Falco, doesn’t come with;
11 on-board sensors, three gyros, three accelerometers, three magnetometers, a barometric pressure sensor and a inbuilt GPS unit capable of holding the unit in a designated hover
Bit of a mouthful that lot but I really do believe this is the way of the future for real estate photography.
And as I had hinted its not a cheap exercise, the paper quotes Mr Craig Dickie;
It costs about $50,000 to purchase and fully kit out a UAV, but Mr Dickie said that was the price of innovation.
Its not just great for the different amount of angles/heights (CAA restrictions limit it to 120m but it can go higher) that the unit can get to & provide, but more importantly in the future as bandwidth on the internet gets better this will be the type of unit required to generate compelling Real Estate video……..
and HD video (might need to double click above Youtube video and select 720HD on the menu-line at bottom of frame) / videotours like this stunning example above from the States -- but imagine it with heaps more/higher aerial shots / flybys. (thanks Larry @ PFRE for the heads-up on this fab production -- full article here at Scott Hargis’s site. This video was actually completed by a Canon 5D MK II DSLR!)
Maybe that’s why as the article in tonight’s paper notes, Aerial Imaging have a “major car magazine” already signed up and a demo with the Nelson police next week.
You can contact Craig by clicking the link to Aerial Imaging above.
Sub-Heading: “Don ‘t show / tell them too much” that way they’ll have to phone
Got into quite a discussion with another agent re the age old debate that crops up when you talk about listings & # of photos on the internet.
Things like;
-> Only show a few photos, or even one like the $2.5m home above? so a buyer has to phone
-> Don’t publish the address, so a buyer has to phone
-> Don’t tell them the price, so a buyer has to phone
-> Use weird terms like Deadline Sale, because the general public usually don’t know what you mean, & they will call, etc, etc
This outdated mode of operation seems to be more about teasing potential buyers and they will phone, well come – maybe like in the Field of Dreams.
However I advanced that just like the Field of Dreams, Acre of Diamond, call it what you will, ………..that once you have it built, in todays crowded marketplace, you have to shout from the treetops and direct everyone to somewhere from whence they can view, at least initially, at their own time and place.
Following on from proven overseas experience it certainly seems that the richer any visually exciting photo experience is, home shoppers will be encouraged to view more details.
Crickey according to this March 2010 post on Larry’s blog, the listing agent stated this photo sold his San Clemente listing in 30 minutes, and in interesting circumstances because the buyer had already visited the property prior to seeing the photo!
In the mix it helps not to forget that your intended buyer is many times one half of a couple, and it definitely takes 2 to tango when it comes to buying a house. One buyer may be analytically inclined, whilst their partner may make most of their decisions based on initial visual inclinations. Visual always wins usually.
How can you possibly hope to excite both partners if you have only shown a couple of photos that “you thought” showed the home in its best light.
Worse still, what options are available to you to possibly refresh a listing that’s had little buyer enquiry for a couple weeks?
Take for example the new lifestyle property listing here, it has 20 photos on realestate.co.nz and also as you can see here, another 36 odd at Open2view – all up 56 photos.
Only built in 2008, on 19.9ha, its in a lifestyle rural location, so it needs to assist folk to find it, view it, and then decide. Crucial when you’re not just around the corner.
Eagle eyed readers will note a point of difference in the Open2view photos is the inclusion of a floorplan.
At this stage the representation on realestate.co.nz just depicts that, the actual floorplan.
However if you log onto Open2view and then have a look at the floorplan here, you’ll notice a substantial difference.
Not only the locations inside and outside from where each photo was taken and the corresponding image, but also the position from where the Quicktime Virtual 360° Tours were taken – and by clicking on those icons you’ll be taken to each correspondingly relevant tour.
Tell me that this sort of visually impressive info wouldn’t be compelling to a buyer from out of town or overseas, or a UK returning ex-pat who wants to live in another part of NZ.
Quite frankly a very likely scenario for our region, as we constant get buyers locally who originally grew up in areas further south. In many cases, the big OE “drifted” into a prolonged period outside NZ (remember my earlier stats on this) however ultimately they come back. And in just as many cases because they always dreamed of wanting to live/bring up a family in the Nelson / Marlborough, “the Top of the South” they show interest in that, certainly from an initial online property search perspective.
Now the old timer though this floorplan thingie actually wasn’t a bad idea after all!
Makes you wonder where in their own mind “do they draw the line?” between this new media and what used to be the priority just 10 short years ago.
And what point is there if your potential buyer is in London, or Dubai viewing the property online at a time when you are probably asleep & your mobile turned off.
You mo as well place a banner on the add that says “Overseas Buyers – Email only.”
So at the end of the day we begged to differ in our own opinions…..and it was a river I couldn’t bridge.
When the Nelson Mail published this photo in October 2007, many folk probably went “sigh”……….
…….and anyone that didn’t live here…..well it wouldn’t surprise me to believe they quite swiftly concluded it was a Photo-shopped image.
The reality was quite the opposite – in fact it was true, here we had someone locally following in the great tradition of Russian flying boats “Ekranoplan’s” ……..and doing it locally, and for a dollar budget, considerably short, seriously short, of those folks investment.
The above video comes from Youtube user nixontankgirl who commented -- I was sitting on my yacht anchored in Nelson, NZ one morning. In the far distance I was vaguely aware of some type of boat racing up and down. I could hear the engine scream…
I’ve posed the question before is there something in the water.
And even though you have most certainly heard that ubiquitous statement before……..
………..there are undeniable grounds for asking that question, and making that statement.
Less than 65kms from Stoke, Nelson is the “Guinness Book of World Records” qualified (and scientifically backed up) the fact that locally we have the clearest fresh water in the world, yes the whole planet. That other place in Antarctica doesn’t really count though.
As the below graphic illustrates, its currently the most popular “clickable auction” on NZ’s most popular auction site, Trademe.
Can’t help but mention here tonight another World First from NZ’s South Island, the Martin Jetpack, has recently secured some serious international funding, and is about to enter commercial production.
The good news according to some Radio Station Jocks on drive tonight was that at this stage, there is no law in New Zealand to ban you from texting while flying one of these apparatus’s.
Hmmm …..does NZ’s South Island – Middle Earth of NZ -- have any other aviation links?
PHOTO -- wikipedia.com
Well glad you asked, because the biggest one, and the subject of immense and intense debate is that we here, down under were actually the first in the world to fly…
PHOTO -- wikipedia.com
……….and near Temuka, just a dozen km’s from where I was born in fact.
A chap by the name of Richard Pearce achieved that feat back in 1903.
UPDATE -- 15th March 2010 unit has been sold for NZD$27,500 to a buyer from Christchurch -- story here.
I’ve been asked all month about the rising levels of inventory, its been commented on it many places this past month too, however from a Nelson perspective it was definitely not that noticeable on the ground.
And when I chart the individual Feb 2010 figures, the reason why becomes abundantly clear.
The numbers on the chart equal the “Number of Weeks of UnSold Housing Stock” that was on the market in February.
The Inventory metric will always be heavily influenced by the percentage of sales that takes place in that locality, but nevertheless it is good guidance.
And why is it important.
Well the volume of competition you have makes a huge difference in achieving or bettering asking prices.
Its that demand and supply equation I’ve talked about before.
Most sellers I’ve ever talked to want their own property to stand out from the rest.
To my way of thinking, that time to sell could be maximised when you have less competition, and not when you will have 4 homes in the neighbourhood of exactly the same age, similar style, size of section, etc.
Yet the other school of thought suggests that because their are more competitors on the market, then it brings out more buyers…..think the typical stereotype of the “spring market” here.
However I suggest that a close eye kept on inventory levels in your own region can’t but help in the long run.
If you were not aware, the Australian Govt has been quite generous over recent years in assisting folk, predominantly younger ones, into their first home.
Their main vehicle has been the “First Home Owner Grant” which provides for a lump sum, oftentimes a very decent lump sum of dollars………….indeed a good chunk of the deposit, towards the purchase of same.
In more recent times, this grant accelerated quite considerably if your purchase was a brand new home under the proviso that you were that homes first owner.
Over the last decade there has been some lobbying for the NZ Govt. to adopt a similar stance. (similar to the USA last year their $15,000 helper, stimulus, etc …..well they call it a tax credit when I discussed it here a year ago)
However in sobering news this week from Aussie Home Loans main man, and reported as such by News Corps’ “Herald Sun” yesterday, is the claim that courtesy of this grant, Aussie John is of the opinion that first home buyers may have spent up to $50,000 more than they would ordinarily have done so.
Aussie John should know, after starting out in the 90’s and then riding a couple of cyclical waves, hes in the enviable position that he is still successful** and hasn’t succumbed like many of the so called “successful high fliers” of this past decade.
And just as puzzling and attractive as a hole in the head, you can imagine how happy Aussies & Kiwis are to hear about things that make them pay more for a home…………..especially their first one?
Unfortunately for the doubters, I think Aussie John is on to something, and justifiable in his way of thinking.
There was a monster fear from the Real Estate community in OZ that once the grant ended, a detrimental effect would take place on property prices in its lieu.
However this was an Australian expressed opinion.
Serendipitous is definitely what I’d call it.
CREDIT ABOVE GRAPHIC – Australian Financial Review (AFR)
I think this weeks headline sort of hints about the OZ situation.
History, as far as the “numbers” are concerned, may prove me wrong………..but there are 2 major reasons why particularly in Australia’s case, it may probably do just that.
1] the fact that Australia has recently emerged as one of the world’s strongest economies
AND…………
2] the fact is the stuff that they have……..is the stuff that the rest of the world wants now…..…and is still prepared to pay top dollar for it now in 2010 dollars for future use…….is just so great that it will surely maintain a growth pattern that many other world players would dream of……and in their wildest dreams too.
So it will be interesting to see if, in some pockets of the country, this thus transpires…..but I can just about guarantee you, that any reduction in property prices won’t happen quickly in places like Kalgoorlie, Port Hedland, Weipa or similar industry location towns. My advice……..buy any bargains you see in those same towns……………TOMORROW!
** – successful – hmmm….well he still has that Aussie dream – the multi-million dollar McMansion to call home.
Just in case you missed it a few weeks back, at this months TED2010, in a demo that according to reports, drew gasps from the audience, and afforded the presenter a standing ovation afterwards, Blaise Aguera y Arcas, from Microsoft, demonstrated new augmented-reality mapping technology from his company.
Augmented Reality is very relevant to the future of Real Estate Marketing, I spoke about it here last June as a primer for readers.
Who is Blaise, well he just happens to be the architect of Bing Maps at Microsoft, and is working to build augmented reality into searchable maps.
Watch this and see if you don’t agree.
Certainly is a forerunner of what the agent in 2015 may be showing on his own website, perhaps broadcasting from his Open Day?
Or imagine a setup like this for an on-site auction, would it be helpful if out of town/overseas telephone buyers could see the other bidders?
You might recall I spoke last December about this wondrous aid to Real Estate Aerial Photography, amongst many other applications, called a Draganfly.
In this particular case, we’re talking about the Model X6, as used in the USA by law enforcement, government & quite possibly, though you may never know, the military.
Great shot, and definitely one with emotive content for a Kiwi.
Including images of NZ’s four-time World Champion Mahe Drysdale in the listing photos is sure to pip a NZers interest, credit to the agent for this creative stance. on property marketing.
Well it can be said we didn’t start 2010 off with a bang, house sales wise.
I only sold 2 for the month.
Today REINZ (Real Estate Institute of NZ) released the official figures for Jan 2010 sales.
I guess a couple of take outs from their press release were;
Total residential dwelling sales plummeted last month to their lowest level in nearly two decades
and….according to Peter McDonald, Real Estate Institute of New Zealand President …….
“Activity in the residential property market was quiet last month on the back of uncertainty over what actions the Government intended to take on the recently announced tax working group recommendations”
A severe lack of new stock hitting the market played “yo/yo” with the market figures.
After being up 14% last month it will be interesting to see what the official Real Estate Institute figures reveal about Jan 2010.
Lots of red this month and no green at all.
During January the local Nelson Property market saw just 62 residential sales, compared to 68 residential sales in Jan 2009.
The above chart would seem to indicate a reduction of the difference between valuation and sell price, with a slight gap showing between asking price and selling price. My thoughts on this are this – we’ve just had our 3 yearly update by QV on local CV’s – and when that happens, and quite a few home owners find their property has been valued quite favourable, may just use that as the trigger they have been waiting for to go to market. That said, a touch of reality usually sets in some time later, and I forward to you, that is certainly what the above shart shows.
After being up last month, the median price for a Nelson Council zone house dropped to $315,000 in Jan 2010. (December 2009: $355,000; Jan 2009: $320,000).
“Days taken to Sell” ramped up to an unusual, for Nelson, 62 days, in comparison to 59 days last January, and just 28 days in Dec 2009.
CHART – click on above for larger version
Sections tapered off, but 8 sold in Jan 2010 for a median price of $187,500, and with a median size of 718m2.
The national sales trends don’t really point in a decisive direction.
In todays release, the REINZ said officially of Nelson;
61 houses sold in Nelson City in January (December 2009: 81; January 2009: 68). The median price decreased to $315,000 (December 2009: $355,000; January 2009: $320,000).
The median price for a Nelson Council zone house was down at $342,000 in January (December 2009: $367,500; January 2009: $316,500). 111 houses sold (December 2009: 128; January 2009: 114).
Again like last month, and illustrating our predominantly family market, 38 x 3 bedroom homes sold, near on 56% of the units by percentage for the month.
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