Tag Archives: market

March 2013 Nelson Property Home Sales Report

April 12th, 2013

The Real Estate Institute of NZ (REINZ) just yesterday released sales statistics covering March  2013.

Although the Nelson/Marlborough region saw a median of $344, 000…..

….. Nelson City itselfs medium was  $350, 000.

The heading probably did nothing to not attract attention from the housing bubble crowd.

Its apparent that Nelson definitely experienced a surge in listings, and that in turn spurned an interest in visiting homes, and ultimately transacting same. Local conveyancers report this week that March was busy, and 2 mentioned it still seemed to be the same for the start of April.

The above chart certainly tells the story I am alluding to, in terms of percentage changes from prior. The situation with Coromandel is a one off and does not reflect any trends I believe.

This was reflected in… local property asking prices.

…as the above chart illustrates. Although this months REINZ commentary mentions that;

Auckland and Christchurch drive an 8.1% or $30,000 increase in the national median house price compared to March 2012, to a new record of $400,000

…..it would seem if the above chart is taken into consideration that we on the shores of Tasman Bay are stepping up to the plate too.

And as would be the case, there is some interaction between all these charts, one thats plain to see when you look at the above one discussing Days on Market. (actually mentioned above using the Weeks on Market term)

Unfortunately for Kiwis, as the Institutes Chief Executive, Helen O’Sullivan, quoted above and continued…

The says price levels in Auckland and Canterbury are having a disproportionate impact on the national picture and potentially skewing perceptions of the overall market. “Analysis by REINZ shows that 90% of the increase in the median price between March 2012 and March 2013 of $30,000 came from just two regions, Auckland and Canterbury/Westland. Together these two regions represent 52% of national house sales, indicating that the remaining 10% of the increase came from the remaining 10 regions which cover 84% of New Zealand geographically.”
“There’s a real danger that the Auckland housing market is mistaken for the New Zealand housing market, and that regulatory decisions will be made on the assumption that conditions in Auckland and Canterbury are replicated across the rest of the country.”

….the coming interest rate increases will be shared equally amongst all Kiwis.

As I’ve harped on before, and recent nights even the 7pm Current Affairs programs have too, regurgitating the proverbial “housing boom” or “housing price bubble” rhetoric, there is only one thing that is creating all this….SUPPLY & DEMAND.  Although on that DEMAND point there is a couple of contributing factors that we have here in NZ, specifically in Auckland, specifics about the ability to actual purchase a local property, that aren’t seen in tons of other countries, including OECD members.

One point is overseas buyers pushing up Auckland prices, as mentioned just this week in BNZ Economist Tony Alexanders weekly commentary.

Citing info in this weeks The Listings Shortage Worsens” commentary, the following anecdote was quoted from a subscriber…

“I wanted to pass back some anecdotal evidence of Chinese buying of residential property in Auckland. Yesterday I called in to view an auction in Milford (next suburb up from Takapuna – in case you don’t know the area). The location has good school zoning but is quite cold in winter. It would be similar to less attractive parts of Karori in Wellington.

The property was a 40+ year old bungalow which the current owners had owned for the last 19 years and were downsizing. It badly needed modernising and re-decorating. It has a QV of NZD620k and we thought it would sell for around $780k max.

Some 120 interested parties attended the auction including at least 5 groups of prospective Chinese buyers – say 50 such people in total. The auction started with a hiss and a roar and quickly blew through the owner’s reserve. It ended up with three Chinese groups bidding against each other with a final buy price of $1023k – a staggering 65% over the QV. This is not an isolated case. I spoke with two of the buyers neither of whom were NZ residents. Both said they will be back to buy ‘more’ houses – how many I don’t know.”

Interesting indeed if this is happening in Auckland.

If you haven’t visited his site and you are interested in NZ property, then its about time you did. One of the features is Tonys summations of views from tons of real estate related folk around NZ, the BNZ REINZ Survey, a way for the reader to  get a pulse about whats happening at the coal face as it were. Here’s what he says;

Each month we ask over 10,000 licensed real estate agents their views on whether things are increasing or decreasing with regard to such things as numbers through Open Homes, requests for appraisals, presence of investors and first home buyers, plus factors motivating buyers and vendors. The survey started in April 2011.

Quotable Value NZ released figures showing Nelson City experienced a 2.8% growth factor for an average value of $389, 939….just behind neighbouring Tasman District which pipped in at 2.9% increase for an average value of $400,874. They also commented;


Although increases are still occurring, areas like Auckland, Hamilton and Christchurch are starting to see the rate of growth slow recently.  It is too early to tell however, whether this is going to be a more widespread slowing of values.

In conclusion, the REINZ Chief Executive commented on the Nelson market;

“…the Nelson market continues to suffer from a shortage of listings with buyer demand outstripping the supply of listings. Despite that first home buyers are active in the market along with some investors looking to buy while interest rates remain low.”

And that was the month that was, March 2013.

March 2013 Nelson Sales data released this afternoon…

April 11th, 2013

This afternoon March 2013 Sales figures have come out. According to the Real Estate Institute of NZs local representative, as far as the Nelson market was concerned;

The median price across the region rose by $13,500 (+4.1%) compared to March 2012, with prices in Richmond and Motueka rising the fastest. Compared to February the median price increased by $9,500 (+2.8%) with prices falling in Motueka but stable in Richmond.
Sales volume compared to February was 22% higher with notable increases in Richmond and Motueka. Compared to March 2012 sales volumes increased by almost 10% with sales in Richmond up 76% and up 15.4% in Nelson City.
The number of days to sell remained steady at 40 days compared to February and eased by five days compared to March 2012. Over the past 10 years the median number of days to sell in February across the region has been 38 days.
REINZ Chief Executive, Helen O’Sullivan commented that “the Nelson market continues to suffer from a shortage of listings with buyer demand outstripping the supply of listings. Despite that first home buyers are active in the market along with some investors looking to buy while interest rates remain low.”
The median price trend continues to improve, although the volume and days to sell trends remain sideways. The overall trend for the region has now eased to sideways.

I’ll report fully in the next few days, its getting busy again.

Feb 2013 Nelson Property Home Sales Update

March 14th, 2013

The Real Estate Institute of NZ (REINZ) has released the sales statistics covering Feb 2013.

Although the region saw a median of 334, 500 Nelson City was stated as 338, 750. (by my calcs 340,000)

Their monthly commentary was headed “Late Summer Surge for Real Estate Market In February” and this was reflected in a new record for the Stratified Housing Price Index, as it reached a new record high of 3,544.9 .

In discussing the “Days To Sell” statistic, the institute noted that all regions, with the exception of Northland, Nelson/Marlborough and Southland, saw an improvement in the number of days to sell between February 2012 and February 2013.  Regarding local “Days to Sell”  the institutes local representative commented;

The number of days to sell remained steady at 40 days compared to January and eased by three days compared to February 2012. Over the past 10 years the median number of days to sell in February across the region has been 43 days.

Though as you can see by the chart above there are some differences.

The REINZ Chief Executive, Helen O’Sullivan commented that “the Nelson market has become more challenging with vendors sticking to price expectations and buyers generally being prepared to wait. Buyers remain active in the market and a continuing shortage of listings further complicates the picture.”

The local spokesperson also mentioned “The median price trend continues to improve, although the volume and days to sell trends remain sideways. The overall trend for the region continues to improve, albeit modestly.”


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.

November 2012 Nelson Property Home Sales Update

Dec 14th 2012

The Real Estate Institute of New Zealand recently released the official sales figures for the New Zealand market. Reflecting increased building activity, 14 Nelson sections were sold in November.

One point of note was the 2 bedroom market, the group showing just 19 days on the market. Our steady 3 bedroom market was not too far behind it, with a healthy 28 days which was just short of the 29 days overall median for all property sold in the catchment over the November 2012 period.

Three bedroom family homes really took the lion’s share of Novembers sales, and that is what’s currently being seen at the coal face, a lack of new properties coming to market in this category.

REINZ Chief Executive Helen O’Sullivan pretty much summed it up when she commented that, “the Nelson/Marlborough region remains relatively constrained with a continued shortage of listings and rising demand for properties, although this is not yet being fully reflected in sale prices.”

REINZ Regional Data for November 2012

…like always click on each image for a more readable higher resolution version.