May 13th, 2013
The Real Estate Institute of NZ (REINZ) has just released consolidated sales figures for properties sold NZ wide in April 2013.
Although the Nelson/Marlborough region saw a drop in median price to $339, 000 from last months $350,000, part of that could have been attributed to the large amount of new listings coming to market, offering buyers much more choice than usual.
As I mentioned, anecdotally wise, in last months review…
“local conveyancers report (ed) this week that March was busy, and 2 mentioned it still seemed to be the same for the start of April.”
So it was with Nelson recording 105 property sales in April, matching March 2013s number exactly.
In the Institutes regional commentary;
Sales volume compared to April 2012 was 34% higher with an almost doubling of sales in Nelson City and strong increases in Richmond and Motueka. Compared to March sales volumes fell by 14% with sales flat in Nelson City, but falling elsewhere across the region.
The number of days to sell improved by five days compared to March, from 40 days in March to 35 days in April. Compared to April 2012 the number of days to sell improved by eight days. Over the past 10 years the median number of days to sell in April across the region has been 40 days.
In comparision to the above informations, DOM (Days on Market) for Nelson City dropped 2 days as an average from 32 to 30 days.
However the standout takeout from this months charts is that Nelson sold twice as much (105 Vs 55) properties in April 2013 as it did in April 2012.
By itself its an interesting figure, and not too much to worry about….more worrying for home buyers is the headline of Tony Alexanders latest 13th May 2013 BNZ-REINZ Residential Market Survey…
Lots of buyers, fewer vendors.
Many in Real Estate have seen this before.
And that friends, that was the month that was, April 2013.
May 13 2013 | Buyers and Nelson and New Zealand and Sellers and Stats / Sales Data and The Market | No Comments »
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;
SIGNS THAT MAIN CENTRES MAY BE SLOWING
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.
April 12 2013 | Buyers and General and Nelson and New Zealand and Sellers and Stats / Sales Data and The Market | No Comments »
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.
April 11 2013 | Buyers and General and Nelson and New Zealand and Sellers and Stats / Sales Data | No Comments »
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.”
March 14 2013 | Buyers and Nelson and New Zealand and Sellers and Stats / Sales Data and The Market | No Comments »
