2022AugustPULSEMARKETC21
WELCOME TO THE August2022 ISSUE OF C21PMARKEtuLsE P u BLI s HER Century 21 New Zealand Ltd CON t RIB ut OR s Tim Kearins Jen CameronBaird Brewer EDI t ORIAL ENQ u IRIE s Century 21 New Zealand +64 9414 6041 ADVER t I s IN g ENQ u IRIE s Century 21 New Zealand +64 9414 6041 DI s CLAIMER We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 New Zealand Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability. For more information on our Privacy Policy please refer www.century21.co.nz/disclaimerto:
C21 NEW ZEALAND NEW s 03 Statistics show first-home buyers re-emerging Century 21 New Zealand, Tim Kearins PROPER t Y MARKE t u PDAt E 04 Market activity and prices continue to ease, first home buyers start to return to the market REINZ CEO, Jen Baird JOIN CEN tu RY 21 06 Perfect time for new real estate franchise C21NZ CCCFA IMPAC t 08 Govt must review CCCFA impact on home buyers s ELLIN g PROPER t Y 09 The best time to sell your house: when you're ready Century 21 C21 MARKET PULSE 01 CENTURY 21 C AONTENTSUgUST2022UnsplashonBorbaJonathanimage:Cover
Looking to buy, sell or rent in a changing market? Our property market expertise and unparalleled customer service will get you the outcome you deserve. Contact your local C21 agent today to discuss your property needs. Visit: C21.co.nz WE ARE EXPERTSANDPROPERTYTHEPEOPLE
Century 21’s offices in the regions continue to report some solid results as the more affordable parts of the country are now getting picked over. Across New Zealand, the number of residential property sales in July decreased annually by 36.7%, from 7,391 in July 2021 to 4,678. At the same time, the total number of properties available for sale nationally increased by 107.8%, from 12,684 in July 2021 to 26,358.
C21 MARKET PULSE 03 CENTURY 21
Overall, sales activity has continued to slow with people showing greater caution. Subsequently, softening demand is leading to an increased volume of stock on the market. As REINZ observe, it’s not a result of distressed vendors. Rather, buyers are simply stepping back with lending restrictions not helping.
Recently I called on the Government to formally review the impact of the new regulations on mortgage applications and make further changes if required. He noted while it was encouraging that the Government had made tweaks, the hurdles remain too high for many Kiwis seeking a mortgage. Since the Credit Contracts and Consumer Finance Act (CCCFA) regulations and a Responsible Lending Code took effect on 1 December 2021, the number of new mortgage approvals has fallen Manysignificantly.verybackable young Kiwis, with solid incomes, are missing out on property purchases just when a softening market is creating great opportunities for them. Lending regulations are critical, but they must also be workable. I’m not convinced the Government has quite got the balance right www.century21.co.nzyet.
C 21 NEW ZEALAND NEWS s tAt I st IC s s HOW FIR st-HOME B u YER s RE-EMER g IN g
It’s also promising that first-home buyers are returning to the market, but more should be enabled to get on the property ladder.
Many regions remain up on last year which is the best news out of the latest real estate figures.
BY TIM KEARINS, CENTURY 21 NEW ZEALAND OVERALL, SALES ACTIVITY HAS CONTINUED TO SLOW WITH PEOPLE SHOWING GREATER CAUTION.
REINZ has released its Monthly Property Report for July – a month which saw median house prices across New Zealand decrease 1.8% annually. At $810,000, the national median house price is down from $825,000 in July 2021. Monthon-month saw a 4.7% decrease compared to June.
REINZ reported: ‘In more affordable regions, we have continued to see significant growth compared to larger markets such as Auckland and Wellington… Agents across the country report they are starting to see demand return from firsthome buyers in the market and some are seeing renewed interest from Wheninvestors.’youexclude Auckland from these latest numbers, the median price for the rest of New Zealand has increased 4.5%, with the likes of Waikato up 8.0% on this time last year.
Across New Zealand, median prices for residential property decreased 1.8% annually, from $825,000 in July 2021 to $810,000 in July 2022.
“We saw a signifi cant upswing in prices since the initial COVID−19 lockdown in early 2020, reaching a peak in November 2021. While the median property price is showing an annual decrease, affordability remains an obstacle for many –which is now being driven by rising interest rates, inflation and tighter lending criteria.
Jen Baird, Chief Executive at REINZ, comments: “The median property price across New Zealand decreased 1.8% to $810,000. This is the fi rst decrease in annual median price movement for New Zealand overall since July 2011. Moving from June to July, we note a 4.7% decrease, and the seasonally adjusted fi gures show a decrease of 2.8%, indicating weaker performance than expected.
• Hurunui District in Canterbury • Grey District in the West Coast.
“In more affordable regions, we have continued to see signifi cant growth compared to larger markets
Month-on-month, this represents a 4.7% decrease from $850,000 in TheJune.median residential property price for New Zealand excluding Auckland increased 4.5% annually from $688,999 in July 2021 to $720,000 in July 2022. There was a month-on-month decrease of 2.7% from $740,000. The median price in Auckland was down 5.6% compared to July last year from $1,165,000 to $1,100,000 in July 2022. Auckland also recorded a month-on-month decrease of 4.3% – down from $1,150,000 in June. Auckland was one of fi ve regions to see an annual decrease in the median price. In Wellington, the median price was down 5.9% annually, from $860,000 to $809,100 in July 2022. Tasman was down 4.6% annually, from 839,000 to $800,000, Otago was down 3.7% from $670,000 to $645,000 and Manawatu/Whanganui was down 0.2% from $586,000 to $585,000. That said, some regions are still seeing double digit annual median price growth. The median price in Nelson was up 16.3% on July 2021, from $688,000 to $800,000, Taranaki saw the annual median price increase 15.9% on the same period last year, from $535,000 to $620,000, West Coast was up 14.7% from $296,500 to $340,000 and Canterbury saw an annual increase of 13.6%, from $597,000 to Two$678,000.territorial authorities (TAs) achieved record medians.
C21 MARKET PULSE 04 CENTURY 21 P ROPERTY MARKET UPDATE M ARKE t AC t IVI t Y AND PRICE s CON t IN u E TO EASE, FIRST HOME B u YER s stAR t tO RE tu RN tO t HE MARKE t
New Zealand’s winter property market continues its recent trend, slowing from the pace of sales and price rises of last year – properties stay on the market longer and median prices dip, according to the latest data and insights from the Real Estate Institute of New Zealand (REINZ), home of the most complete, accurate and up-to-date real estate data in New Zealand.
BY JEN BAIRD, REINZ CEO
According to local agents, the number of attendees at open homes has fallen, days on the market have increased to 61 days in July 2022, and sales activity has eased. Stock is staying on the market for longer and the properties selling are those where vendors have met the market.
“Real estate markets are cyclical, after a period of strong upward movement, it is slowing. However, prices tend to decrease more slowly than they increase and after a period of stability, the market tends to regain momentum and median prices start their climb. We are in the easing part of the market cycle,” Baird says. Click here to read the
“On the other hand, the Wellington market hasn’t fared so well.
full report Source: REINZ Monthly Property Report 11 August 2022 . $ Record Median Price $810,000 NATIONAL MEDIAN PRICE: 471.8%MEDIAN DAYS TO SELL: H AWKE’S BAY 1.2% WELLINGTON -5.9% MARLBOROUGH 0.4% CANTERBURY 13.6% OTAGO -3.7% BAY OF PLENTY 3.6% NORTHLAND 3.6% AUCKLAND -5.6% WAIKATO 8.0% TARANAKI 15.9% MANAWATU / WANGANUI -0.2% NELSON 16.3% TASMAN -4.6% WEST COAST 14.7% SOUTHLAND 0.4% 0.6% GISBORNE ANNUAL MEDIAN PRICE CHANGES
C21 MARKET PULSE 05 CENTURY 21 such as Auckland and Wellington. Buyer demand remains intact in Canterbury, and specifi cally Christchurch, reflected in the region’s strong performance over the past months.
C21 MARKET PULSE 06 CENTURY 21 J OIN CENTURY 21
“For experienced real estate agents and businesspeople this is the perfect time in the property cycle to punch out on your own and set up shop. Both buyers and sellers have never been hungrier for world-class customer service and opportunities are aplenty,” says Tim Kearins, Owner of Century 21 New Zealand. “Many Kiwis in business are looking for a fresh start and a new work challenge, while many vendors are desperate for extra energy and enthusiasm in an agent and agency. This is the time to establish a new franchise office as you’ll get noticed, and if you’re both professional and keen, plenty of business will come your way,” says Mr TheKearins.Century 21 leader says in a quieter or more challenging environment, the right agent and agency become more important than the amount of advertising vendors invest in. “With softening prices and lesser demand, both buyers and sellers want and need great service. In this market, the internet is not going to sell a property. Sales professionals, however, who offer unbeatable service at every level, backed by a superior brand, reputation and resources will sell your property and sell it well,” he says.
Now in nearly 200 countries, Century 21 is the largest real estate organisation and the most recognised realty brand
Big in Australia, Mr Kearins says it’s no secret that Century 21 has ambitions to open more franchised offices throughout New Zealand. In fact, the company is now on a recruitment drive, actively promoting opportunities in Hamilton, Tauranga, and the North Shore of Auckland.
Ininternationally.NewZealand, Century 21 has established itself as a highly rated operator with strong community links in the likes of Auckland, Waikato, Manawatu, and Wellington. What’s more, key city based C21NZ franchises often make the list of ‘Top 21’ performing offices across Century 21 Australasia.
The company’s newest office, Century 21 Jean Johnson Realty, in Northland’s Dargaville has enjoyed a great start. “As well as the incredibly respected brand, being a Century 21 franchise means our salespeople and support staff have the best training, systems, and technology. Ultimately, that means maximum exposure for properties and the best possible price for vendors,” says franchise owner and principal Jean Johnson. The company says there are plenty of opportunities for other operators to either establish a start-up office or rebrand their existing real estate agency. “The remain many untapped locations in New Zealand, which we are now actively working on. Century 21 is not in every town and that creates enormous potential and large exclusive catchments for anyone wanting to roll their sleeves up and take their careers to the next level,” he says.
Century 21’s worldwide reach is another attraction for proven
P ERFEC t t IME FOR NEW REAL E stAt E FRANCHI s E – C21NZ
C21 MARKET PULSE 07 CENTURY 21
businesspeople and highperforming salespeople looking to establish a new franchise. In fact, Mr Kearins says, having a real estate business that’s part of a global network is increasingly critical. “Our borders are open with expats returning, and given all the global economic volatility, New Zealand property remains a safe bet for investors. Since Covid, we’ve seen increasing searches of our local listings via Century 21’s global website which can be translated into 19 different languages. Every house we list is promoted to the world,” he says.
Managing Director Julius Capilitan continues to deliver C21NZ clients’ competitive rates and greater borrowing fl exibility than traditional banks. “Like most organisations, we can’t get enough good people. However, every economic challenge creates economic opportunity. For those Kiwis with experience and success who possess plenty of drive and motivation what an incredibly exciting time to join the real estate industry and make a real difference,” says Tim Kearins.
Another compelling proposition and point of difference in the New Zealand marketplace is the presence of Century 21 Financial.
To find out more about the benefits of becoming a part of Century 21’s global network, visit www.c21.co.nz/ joining-century-21 or tim.kearins@century21.co.nzcontact
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“Too many loan applications continue to be declined since lending restrictions took effect last December. It’s encouraging that the Government is prepared to make tweaks, but the hurdles remain too high for many Kiwis seeking a mortgage,” says Tim Kearins, Owner of Century 21 New Zealand. His comments follow Commerce and Consumer Affairs Minister David Clark announcing further changes to loosen the Credit Contracts and Consumer Finance Act (CCCFA) regulations. This marks the second tranche of tweaks since the new regulations and a Responsible Lending Code took effect on 1 December 2021. Loud and wide criticism then followed that the requirements were overly prescriptive and too heavy handed. “We all agree with moves to hit loan sharks who target vulnerable borrowers. However, increasing numbers of financial experts, banks, brokers, and home buyers continue to get hit by a very broad brush the Government is applying to all loan applications. “It’s a shame because many very backable young Kiwis, with solid incomes, are missing out on property purchases just when a softening market is creating great opportunities for them,” he says. The Century 21 leader is now calling on the Government to review the regulations’ impact on mortgage applications and make further changes if required. “Banks have consistently advised that 10 percent of all loans they would’ve once been approved are now getting declined. That number needs to fall, and if it doesn’t more clarification and changes must be made by the Government. The last thing the country needs is a near impossible lending environment.”
He says since December, the credit crunch has exacerbated the softening property market. If first-home and next-home buyers continue to struggle to access finance, the regulations will continue to add considerable drag. “The Government has widened access to its deposit schemes, rents remain sky-high, and entrylevel house prices are looking more attractive. Too many young Kiwis, however, continue to fall short at a time when we as a country should be throwing everything at home “Borrowingownership.money is hard enough and getting more expensive. The Government now needs make sure it’s still actually possible for most. If unworkable lending regulations continue, they will put a huge cost on New Zealand in the short and long term,” says Tim www.century21.co.nzKearins.
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S ELLIN g PROPERTY
C21 MARKET PULSE 09 CENTURY 21 t HE BE st t IME tO s ELL YO u R HO us E: WHEN YO u 'RE READY
So, you're thinking of selling your house? Great! There are a lot of considerations, but one of the most important is timing. So, when is the best time to sell your house? The answer: when you are ready, not the market or any other influencing factors. Only three things really influence your 'readiness' to sell your property and a successful sales outcome –price, presentation and marketing. Aligning these three elements and you will attract buyers who are genuinely interested in transacting.
PRICINg The right pricing is critical when selling your home and can be the difference between a quick sale and your home languishing on the market. Setting the price too high will obviously dissuade buyers, but pricing too low could mean leaving money on the table. The key is to find that Goldilocks price that is just right. In a market where we are seeing variable changes across different areas, it is essential you consult with your local C21 real estate agent who has experience in the area and is familiar with the most recent sales prices of similar properties. They will be able to give you a great indication on the price range your home should fall into. Once you have a suggested price range, you can do some additional research online using sites like realestate. com.au to get an idea of what similar homes in your area are currently listed for. You may also want to have a professional valuer come and assess your home to give you an idea of its current market value - in regard to loan approvals to potential buyers and adjusting your own expectations. This can be especially helpful if you have made significant upgrades or renovations to your home since you purchased it as these improvements will likely increase the value of your home. PRESENTATION When you are selling your home, it is important to present it in the best light possible. This means making sure that it is clean and tidy, and that any repairs or maintenance issues are addressed. It may also mean making some cosmetic changes, such as painting or staging furniture and gardening to help make your home more appealing to potential buyers. Your C21 real estate agent will be able to advise you on how to best prepare your home for sale, and can provide you with guidance to help make the process as smooth as possible. Remember, first impressions count so take the time to ensure that your home is show-ready before putting it on the market! MARKETINg The majority of home sellers are not experienced in marketing and selling property. Consequently, they rely heavily on their real estate agent's expertise. An effective agent will use their industry knowledge to help you price your home correctly from the start. They will then create a marketing plan that targets the right buyers and gets your home maximum exposure. If you have a good relationship with your agent, this process will be much smoother and more successful. Marketing and pricing are two key elements in successfully selling your home; trust your real estate agent to help you navigate them both. Consulting a local property expert at the start of your selling process will make a big difference to your sale outcome and experience. Our C21 agents are happy to help in any way to maximise your results and achieve your property goals.
