J u l y
M A R K E T
2 0 2 2
P U L S E
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Tim Kearins Jen Baird Cameron Brewer
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
July 2022
ISSUE OF
C21 MARKET PULSE
DISCLAIMER 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 to: www.century21.co.nz/disclaimer
Cover image: Kam Idris on Unsplash
C O N T E N T S J uly
C21 NEW ZEALAND NEWS
03
2 0 2 2
HOUSING MARKET
Prices flatten with keen buyers still out there.
Affordability Report gives hope to
Century 21 New Zealand, Tim Kearins
first home buyers
08
Century 21 New Zealand, Tim Kearins
PROPERTY MARKET UPDATE
04 HOME & LIFESTYLE
Annual median price increases nationally, but market activity tempered
Decorating your home with Hamptons style
REINZ CEO, Jen Baird
Century 21
MARKET MATTERS
06
Agent more important than advertising in this market Century 21 New Zealand, Tim Kearins
C21 MARKET PULSE
01
CENTURY 21
09
EXPERIENCE THE C21 DIFFERENCE
At Century 21, our understanding of the local property market, combined with our people first approach, means we are able to achieve superior results for you. Contact your local C21 agent today to help you reach your property goals.
Visit: c21.co.nz
C21 NEW ZEAL AND NEWS
PRICES FLATTEN WITH KEEN BUYERS STILL OUT THERE
BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
House prices have flattened overall which is better than most expected. What’s more, buyers are actively out there this winter with government deposit schemes and changes to lending requirements helping. REINZ recently released its Monthly
are now eligible for government
important it is to engage the
Property Report for June – a month
assistance to pull together the all-
right agent and agency. People,
which saw median house prices
important deposit. House price caps
not advertising, sell properties in
across New Zealand increase 4.2%
for the First Home Grant have been
quieter or challenging times. What’s
annually. At $850,000, the national
increased and for First Home Loans
more, with the borders back open,
median house price is up from
they’ve been entirely removed.
an international brand like Century
$816,000 in June 2021. Monthon-month saw a 1.1% increase compared to May.
Changes to the Credit Contract & Consumer Finance Act (CCCFA)
21 with a global reach is once again an important advantage.
regulations, which took effect on 7
With the Reserve Bank signalling
REINZ reported: ‘With more stock
July, will also help more mortgage
interest rate rises for the
on the market, more opportunity
applicants to secure lending.
foreseeable future, any buyers
for negotiation, and prices off their peak, for those with access to finance, there is opportunity here. Reports from real estate professionals across New Zealand suggest owner-occupiers remain strong in the market. First-home buyers are remerging…’ Rents are still high, with Trade Me's latest Rental Price Index showing median weekly rent now well above $600 in many Auckland and Wellington districts. Softening prices and more housing product coming to market is giving many tenants an opportunity to finally consider homeownership. Also helping first-home buyers is the fact that thousands more
CCCFA changes will help but the big banks remain tough with new borrowers. However, it doesn’t all
stalling to see if house prices fall much further risk paying more to service their lending.
begin and end with the banks. More
In recent years, many prospective
and more first-home buyers are
first-home buyers have been locked
discovering that mortgage brokers
out of the housing market. This
can deliver competitive rates and
winter they’ve finally been handed
greater borrowing flexibility than
some keys and that’s great for them.
traditional lenders.
There are also plenty of next-home
Across New Zealand, the number
buyers out there. A change in
of residential property sales in
personal circumstances, opting for
June decreased annually by 38.1%
more work-life balance, or a new
from 7,629 in June 2021 to 4,721.
job, are arguably happening more
At the same time, the total number
than ever, and that often means a
of properties available for sale
new address. For whatever reason,
nationally increased 89.5%, from
many Kiwis still want to buy a house.
13,861 in June 2021 to 26,271. For vendors, periods like this are a good reminder of just how C21 MARKET PULSE
03
CENTURY 21
www.century21.co.nz
P R O P E R T Y M A R K E T U P DAT E
ANNUAL MEDIAN PRICE INCREASES NATIONALLY BUT MARKET ACTIVITY TEMPERED
BY J E N B A I R D, REINZ CEO
The New Zealand median price increased 4.2% annually in June, from $816,000 in June 2021 to $850,000 in June 2022. However, dampened demand sees sales activity down and days to sell are up, 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. The median residential property
growth in June. The median price in
decrease of 0.2% from $576,000 to
price for New Zealand excluding
the region increased 22.1% annually
$575,000 over the same period.
Auckland increased 9.0% annually
— from $565,000 to $690,000 in
from $680,000 in June 2021 to
June 2022. The Waikato region had
$741,000 in June 2022. There was
an annual increase of 14.3% — from
a month-on-month increase of 1.1%
$735,000 to $840,000.
from $733,000.
Four regions showed an annual decrease in median price.
movement in May, the median
Wellington was down 4.2%
price in Auckland increased
from $885,000 in June 2021 to
0.5% compared to June last year
$848,000 in June 2022. There
from $1,150,000 to $1,156,000
was less volatility in median
in June 2022.
prices across TAs in the region,
on-month increase of 2.8% — up from $1,125,000 in May. Though Auckland City and Waitakere City recorded negative annual median price movements, the smaller
indicating more consistent market dynamics. Six of the eight TAs in the Wellington region had negative median price movement, with one showing no movement and only South Wairarapa increasing.
territorial authorities (TAs) of
Hawke’s Bay was down 1.4%
Rodney, Papakura and Franklin
from $700,000 to $690,000,
had double digit increases in
the median price in Manawatu/
median price.
Whanganui decreased 1.1%
Canterbury was the region with the strongest annual percentage
from $581,200 to $575,000, and Taranaki saw a marginal
C21 MARKET PULSE
04
Three of those were in Waikato, two in Canterbury and one in the West Coast.
Following negative annual
Auckland also recorded a month-
Six TAs achieved record medians.
CENTURY 21
Jen Baird, Chief Executive at REINZ, comments: “The median price across New Zealand increased 4.2% annually, to $850,000 in June 2022. Month-on-month, there was a 1.2% increase in median price. As we moved from May into June, the seasonally adjusted figures show an increase of 1.5%, indicating performance was marginally better than expected. “We’re seeing volatility across the country as the market seeks equilibrium at a more moderate pace. While Canterbury saw its median price increase 22.1%, and Waikato was up 14.3%, four regions dipped into negative annual price
ANNUAL ME DIAN PRICE CHANGES $
Record Median Price
0.0%
0.5%
NORTHLAND
AUCKLAND
NATIONAL MEDIAN PRICE:
$850,000
BAY OF PLENTY
14.3%
4.2%
GISBORNE
-1.1%
TARANAKI
44
13.5%
2.5%
WAIKATO
-0.2%
MEDIAN DAYS TO SELL:
8.4%
-1.4%
MANAWATU / WANGANUI
HAWKE’S BAY
-4.2%
NELSON
5.5% 4.0%
2.0%
TASMAN
WELLINGTON
MARLBOROUGH
22.1%
WEST COAST
CANTERBURY
6.3%
13.6%
SOUTHLAND
OTAGO Source: REINZ Monthly Property Report 13 July 2022 .
movements. Wellington was down
“Further changes to the Credit
4.2% compared to June last year.
Contracts and Consumer Finance
“Housing affordability remains an issue for many buyers on the market. Paired with tighter lending
Act (CCCFA) regulations have been implemented, which may alleviate some pressure on borrowers
restrictions, higher interest rates
However, it’s yet to be seen whether
and concerns over inflation, we are
the recent changes go far enough
seeing hesitancy amongst buyers.
to remedy the handbrake on activity
“As the market stabilises, and the high-growth we saw through 2021 dissipates, downward pressure on
they initiated when introduced in December 2021,” Baird observes.
Click here to read the full report
prices may improve affordability. However, this is balanced with higher mortgage costs and wider economic headwinds that may continue to temper people’s appetite for entering the market — as a buyer or seller.
C21 MARKET PULSE
05
CENTURY 21
M A R K E T M AT T E R S
AGENT MORE IMPORTANT THAN ADVERTISING IN THIS MARKET Ongoing confirmation that buyers are standing back as house prices ease across the country, highlights the critical importance of getting the right real estate agent from the outset, says Tim Kearins, Owner of Century 21 New Zealand. “With prices softening and buyers
role but in a softening market, the
property. Accurately pricing a house
taking their time and throwing out
agent is all-important. They need
from the start is key, as is then
cheeky offers, vendors need an
to be hungry but not desperate,
defending that property’s price.
agent who can push back on their
fully prepared, and have the skill to
behalf yet still close a deal. In this
target the most likely buyers and
market, charm or good luck will
keep them interested,” he says.
not ensure a successful real estate negotiation and sale. Vendors need to engage a proven and proactive professional,” says Mr Kearins.
with new buyers entering the market every month.
engage ends up not to be the one who fronts the open homes or
choosing an agent ask for some
disappointment is agents talking
recent references, seek out how
up the property’s value to get the
they’ll achieve the best possible
listing, then drowning the vendor
price, who will manage the open
with negative buyer feedback to
homes, how they’ll work with their
lower their expectations.
attract the right prospective buyers.
“You want your chosen agent to front every weekend. You also want your agent to stand by an
“The quality of marketing does
agreed realistic sale price until
vary, but not as much as the quality
all the options are exhausted. If a
of an agent or agency. People,
buyer can sense an agent doesn’t
not advertising, sell properties
believe a property is worth what the
in quieter or challenging times.
vendor’s expecting, they’ll smell
Ideally, you want an 80:20 agent
blood and start low-balling their
– reflecting the fact that 20% of
offers,” he says.
agents sell 80% of homes.
a quieter market demand remains,
disappointed that the agent they
potential buyers. Another common
what methods will they apply to
vendors to remember that even in
Mr Kearins says many vendors get
The Century 21 leader says when
colleagues to widen the net, and
Mr Kearins says it’s important for
A good agent will work with a
“On a rising market when demand is
vendor to settle on an acceptable
strong, the agent may play a lesser
agreed price prior to marketing a C21 MARKET PULSE
06
CENTURY 21
“Ideally your agent will have comparable listings in your wider neighbourhood, so they can bounce buyers around from property to property. You want buyers referred to your property if they’ve missed out down the road,” he says. Also, ask your agent to physically take you through their planned walkthrough. Mr Kearins says knowing how agents will show a house will help vendors better present it. He says a good agent will also be aware of government-assistant schemes first-home buyers may be eligible for, as well as any avenues and opportunities out there if buyers require extra credit. “Many buyers presume it all begins and ends with the big
banks. However, mortgage brokers like Julius Capilitan of Century 21 Financial do all the running around, to deliver competitive rates and greater borrowing flexibility than the traditional lenders,” he says. With expats returning and borders re-opening, another consideration is engaging a real estate agency that’s part of a global network. “We’re seeing increasing searches of our local listings via Century 21’s global website which can be translated into 19 different languages. With New Zealand an attractive place to migrate and invest, having your property visible from anywhere in the world is increasingly important,” says Tim Kearins.
www.century21.co.nz
HOUSING MARKET
AFFORDABILITY REPORT GIVES HOPE TO FIRSTHOME BUYERS “Despite interest rate rises, it’s arguably easier not harder for first-home buyers to crack into the housing market for now,” says Tim Kearins, Owner of Century 21 New Zealand. His comments follow the release
important than a lower house price
with the proposed changes to
of interest.co.nz's Home Loan
when it comes to buyers’ ability to
the Credit Contract & Consumer
Affordability Report for May.
service debt. That’s why many first-
Finance Act (CCCFA) which took
Based on the latest REINZ data,
home buyers are taking the plunge
effect on 7 July. This follows
it saw the overall median sales
now,” he says.
a major credit crunch since
price for lower quartile properties decline from $640,000 in April to $628,000 in May.
Mr Kearins says more tenants are reaching for mortgage calculators and meeting with brokers to assess
late last year with the CCCFA requiring banks to apply ultraconservative assessments on new mortgage applications.
“This means a reduction in the
their chances of securing a loan.
required deposit and a reduction in
This follows TradeMe’s latest rental
“The hoops and hurdles for first-
the amount needed to be borrowed
price index showing the national
home buyers have been many.
and repaid. While this month-to-
median weekly rent edging closer to
However, with prices for entry-level
month movement is not dramatic,
$600 – with rents up seven percent
homes softening, government
it will nonetheless help more
on a year ago.
support widening, and stringent
Kiwis realise their homeownership dreams,” says Mr Kearins.
“Also helping first-home buyers’ motivation and chances is the fact
When also factoring in the effects
that they now have greater access
of rising interest rates from April to
to government help, making it
May, the Home Loan Affordability
slightly easier to cobble together a
Report concluded first-home
deposit,” he says.
buyers were still ahead overall, albeit it marginally.
Budget 2022 saw assistance for thousands more first-home buyers.
“House prices are certainly
House price caps for the First Home
softening. At the same time the
Grant were increased and the First
Reserve Bank has indicated that
Home Loan scheme saw price caps
interest rates will continue to rise
entirely removed.
for the foreseeable future. Locking in a good interest rate can be more
The Century 21 leader says additional help will hopefully come C21 MARKET PULSE
08
CENTURY 21
lending requirements lessening, homeownership for now is in reach of more Kiwis,” says Tim Kearins.
www.century21.co.nz
HOME & LIFESTYLE
DECORATING YOUR HOME WITH HAMPTONS STYLE If you're looking to add a touch of Hamptons style to your home, you're in luck. This classic style is easy to achieve and can be adapted to suit any space. In this article, we will give you some essential tips for decorating your home in Hamptons style. So, whether you want to create a coastal oasis or simply add a touch of summery elegance, keep reading for some inspiration! CREATE A RELAXED AMBIANCE
So, ditch the knick-knacks and
The Hamptons style is all about
focus on a few key pieces that will
creating a relaxed and elegant
make a statement. A beautiful vase,
ambiance. To achieve this look, start
a piece of art, or a stylish lamp are
with a neutral colour palette. Think
all great options.
whites, creams, and light blues. Then, add in some natural materials such as wood and rattan. And don't forget the stripes! Whether you opt for nautical navy or summery sky
Here are some easy and practical ways you can inject a bit of
• Use patterns in hues of
Opt for pieces that are simple yet stylish. A good rule of thumb is to choose furniture that you would find in a chic beach house. Think wicker chairs, slipcovered sofas, and reclaimed wood coffee tables. When it comes to Hamptons style decor, less is more. That means
• Place windows strategically to let in lots of natural light. • Keep walls crisp and white. • Use oversize furniture to create a sense of luxury and relaxation. • Hang classic curtains – Hamptons style is all about classic elegance. • Use coastal colours to complement your crisp white primary palette. • Add plantation shutters for a touch of luxury and sophistication. • Curate some Nautical themed
avoiding clutter and keeping
decorations that tie in with your
your space feeling light and airy.
overall theme.
09
end-goal when adding Hamptons elements to your home. So, add some plush throws and cushions, light some scented candles, and bring in some greenery. These
blue and grey.
C21 MARKET PULSE
and interest to the walls.
relaxed and inviting space is the
Hamptons-inspired space.
style is furniture with clean lines.
• Use wainscoting to add texture
finishing touches. Creating a
OUR TOP 10 HAMPTONS STYLING TIPS
Hamptons style into your decor:
Another key element of Hamptons
add warmth and character.
Finally, don't forget the all important
blue, stripes are a must-have in any
CLEAN LINES AND STYLISH ADDITIONS
• Install timber floorboards as they
CENTURY 21
simple steps will transform your space into a Hamptons haven that you can enjoy all year round! We hope you found these tips helpful! Now it's time to start planning your Hamptons-inspired space. Happy decorating.
