C21 Market Pulse | July 2023 | New Zealand

C21

WELCOME TO THE July 2023

ISSUE OF C21 MARKET PulSE

P u B l ISHER

Century 21 New Zealand Ltd

CONTRIB u TORS

Tim Kearins Jen Baird

EDITORIA l ENQ u IRIES

Century 21 New Zealand +64 9414 6041

ADVERTISING ENQ u IRIES

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DISC l AIMER

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B u y ER ACTIVIT y AND SA l ES u P, N EW l ISTINGS STI ll l AG

The Real Estate Institute of New Zealand’s (REINZ) June 2023 figures show a renewed level of activity emerging.

REINZ Chief Executive Jen Baird says June traditionally tends to be a slower month for the property market, however this month we are seeing a rise in sales counts alongside a hesitancy from sellers to list.

Compared to June 2022, this month has shown a notable increase in sales. The total number of properties sold across New Zealand in June 2023 was 5,629, up from 4,912 in June 2022 (+14.6%), year‑on‑year. New Zealand excluding Auckland sales counts increased by 17.4% year on year from 3,203 to 3,761. At the end of June, the total number of properties for sale across New Zealand was 24,676, down 6.1% (1,595 properties) from 26,271 year on year, and down 7.5% month‑on month. New Zealand excluding Auckland was down from

BY JEN BAIRD, REINZ CEO

15,820 to 15,655, a decrease of 165 properties annually.

“With sales counts up year‑on‑year but down slightly month on‑month, the change in direction of the national inventory level is driving ongoing lower levels of new property coming to market and an increase in the number of sales being made, ” adds Baird.

Historical data tells us that we typically expect a decrease in sales when moving from May to June across New Zealand. When that seasonal trend is considered, by applying seasonal adjustment to the sales count figures, we see those sales this June exceeded expectations when compared to the sales count in May 2023.

Nationally, new listings decreased by 21.2%, from 7,893 listings to 6,218 year on year, and a 15.5% decrease compared to May 2023 from 7,359. New Zealand excluding Auckland listings decreased 19.8% year‑on‑year from 4,994 to 4,005.

“Salespeople across the country are reporting increased first home buyer activity at open homes, with the

easing of LVR restrictions that came into effect on 1 June bringing more people out looking. Although activity has increased, caution remains as interest rates, a pending election and further strain caused by the cost‑of living tempers putting pen on paper,” states Baird.

Nationally, the June 2023 median price decreased 8.2% year on year to $780,000 from $850,000. Days to sell have risen to 49 days for June 2023 up 4 days compared to June 2022 and no change from May 2023. The West Coast and Tasman regions saw an annual increase in median price up 8.1% to $400,000 and 7.4% to $800,000 respectively.

“In the last three months ending June 2023, 15,934 sales have occurred, a 1.2% increase year‑on‑year. A lack of listings and the challenge of navigating the current economic climate are putting pressure on the market. Commentators say there are harder times ahead, but sales are still happening, people are still making choices about where and how they live, and these choices necessitate a property transaction,” adds Baird.

ANNUAL MEDIAN PRICE CHANGES

The REINZ House Price Index (HPI) for New Zealand, which measures the changing value of residential property nationwide, showed an annual decrease of 9.0% for New Zealand and a 8.0% decrease for New Zealand excluding Auckland.

The Real Estate Institute of New Zealand (REINZ) has the latest and most accurate real estate data in New Zealand.

For more information and data on national and regional activity visit the REINZ’s website.

NATIONAL HIGHLIGHTS

The national median price has remained stable with a 0% change month on month and a 8.2%

change year on year from $850,000 to $780,000. For New Zealand excluding Auckland, median prices were down 8.1% to $680,000.

The total number of properties for sale across New Zealand decreased 6.1% year on year, and down 7.5% month on month.

The total number of properties sold across New Zealand in June 2023 increased 14.6% year‑on‑year to 5,629, decreasing 4.1% month‑on‑month.

Nationally, new listings decreased by 21.2%, from 7,893 listings in June 2022 to 6,218 listings in June 2023.

Days to sell have remained at 49 days for June 2023 no change

from May 2023 and up 4 days from June 2022.

When that seasonal trend is taken into account June 2023 exceeded expectations when compared to the sales count in May 2023.

The REINZ House Price Index (HPI) for New Zealand showed an annual decrease of 9.0% in the value of residential property nationwide.

Click here to read the full report

Source: REINZ Monthly Property Report 15 July 2023 .

T HIS WINTER A GREAT TIME TO P u RCHASE IF yO u CAN!

with REINZ headlining: ‘Early signs of returning confidence as sales volumes rise in the regions’.

The new, lesser LVR restrictions took effect on 1 June, enabling banks to be able to approve more of their new lending to owner‑occupiers borrowing more than 80%, as well as an easing for investors.

BY TIM KEARINS, CENTURY 21 NEW ZEALAND

more challenging times with the recent appointment of Quinton Keyser – our National Growth & Service Manager.

We’re now actively working to attract competing agents, principals, partners and businesspeople to join C21NZ as franchise owners.

Recently, REINZ released its Monthly Property Report for May‑a month which saw median prices across New Zealand decrease 8.2% year on year to $780,000 but saw no change month on month. Days to sell have risen to 49 days for May 2023 – up six days compared to May last year.

REINZ reported: ‘As we head into the winter months, we are seeing glimpses of positivity, especially in the regions following the Reserve Bank’s announcement of easing loan to value restrictions and the stabilising of interest rates.’

The regions of Northland, Auckland, Waikato, Wellington, Tasman, Marlborough and Southland all had a 30% increase or more in sales volumes month on month,

Too many creditworthy borrowers were being blocked from borrowing. Easing the LVRs gives banks and borrowers a little more wriggle room which is positive for the market, as is the return of some solid inward migration, not to mention that perhaps the peak of interest rates is in sight.

With immigration once again on the rise, Century 21's international reach is again a big bonus. What’s more, with borrowing still tough, having access to inhouse mortgage broker Julius Capilitan of Century 21 Financial is also a plus for the global real estate brand in New Zealand.

Unlike many other real estate companies, we’re not seeing a big drop off in agents or offices. In fact, we’re making the most of these

With rents still high, those who can organise a mortgage and buy this winter, won’t look back. What’s more, the industry is reporting that vendors are getting more realistic with their price expectations, with many now keen to sell before the General Election campaign which traditionally sees Kiwis delaying their decisions.

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It’s good to see some stabilisation in the real estate numbers no doubt helped by the return of immigration and the Reserve Bank signalling an easing of LVR restrictions and a possible end to OCR increases.

5 ESSENTIA l Q u ESTIONS WHEN CHOOSING A REA l ESTATE AGENT TO SE ll yO u R HOME

Selling your home can be a complex and emotional process, and it's crucial to have the right guidance. Choosing the right real estate agent is critical to not only achieving the best possible sale price, but also a less stressful sale journey. A reliable agent can help you navigate the complex real estate market, market your property effectively and negotiate the best price on your behalf. Here are the top five questions to ask when considering a real estate agent to sell your home.

1. HOW LONG HAVE YOU BEEN IN THE REAL ESTATE BUSINESS?

When choosing a real estate agent to sell your home, it is essential to ask about their experience. An experienced agent has a good understanding of the local market and can leverage their expertise to sell your property quickly and

efficiently. They are likely to have a broad network of potential buyers, other agents, and industry contacts, which can help you get the best deal.

2. WHAT IS YOUR MARKETING STRATEGY?

The success of your home sale largely depends on your agent's

marketing strategy. A competent agent should have a clear plan on how to market your property to potential buyers. Ask your agent about their approach to advertising, including online marketing, social media, open houses and print media. A good agent should be able to tailor their marketing strategy to your unique needs, ensuring maximum exposure for your property.

3. WHAT IS YOUR PRICING STRATEGY?

Pricing your home correctly from the start is crucial to attracting the right buyers and maximising your sale price. A skilled real estate agent should have a deep understanding of the local market and be able to provide you with an accurate pricing strategy based on recent sales data and market trends.

Ask your agent how they determined the recommended price and how they plan to adjust the price if necessary.

4. HOW WILL YOU COMMUNICATE WITH ME THROUGHOUT THE SELLING PROCESS?

Effective communication is critical to a successful home sale. Ask your agent how often they plan to communicate with you, including frequency and through what channels. A reliable agent should keep you informed at every stage of the selling process, including feedback from potential buyers, offers and negotiations. They should

also be accessible and responsive to your inquiries and concerns.

5. WHAT DO PAST CLIENTS SAY ABOUT THEIR EXPERIENCE?

One of the best ways to evaluate a real estate agent is by hearing directly from their past clients. A trustworthy agent should have a collection of glowing testimonials from satisfied customers who have worked with them in the past. Do your research, by getting an insight into the experience past clients have had, you can gain valuable information to help you make an informed decision about which agent to choose.

Choosing the right real estate agent is critical to getting the best possible result when selling your home. Asking the right questions can help you find an agent who has the experience, expertise, and communication skills needed to help you achieve your home selling goals.

At Century 21 Real Estate getting the best results for our clients is what we do.

Contact your local C21 property expert today for an obligation free discussion.

N OW IS THE TIME TO CONSIDER B uy ING

“Now is the time for tenants to look into buying. Many might be surprised what can be achieved, with the help of government schemes and pulling resources together,” says Tim Kearins, Owner of Century 21 New Zealand.

His comments follow Trade Me Property revealing that Auckland is now the most expensive region to rent in the country, after its median weekly asking price climbed to $660 in May – up 10% in just 12 months. At the same time, nationwide, median weekly asking rents are up to a record high of $610.

“Coming up with a sufficient deposit is often the biggest hurdle but prospective buyers should look into the Government’s first home buyer assistance. Government schemes include First Home Grants, First Home Loans, and First Home Partner.

“Given the sky high rents and the current buying opportunities, flatmates, friends and family members should also look into collectively pulling a deposit together and convincing a broker or bank of their ability to service. First home buyers struggling to get over the line, should also consider a tenant to help their bankability,” says Mr Kearins.

The Reserve Bank’s recent easing of the Loan To Value Ratio (LVRs) restrictions is also helping more first home buyers, not to mention that vendors are getting more realistic on their price expectations. The Reserve Bank has also indicated that future rises to the Official Cash Rate (OCR) are not expected.

Julius Capilitan, Managing Director of Century 21 Financial, says there are many ways to help Kiwis get into their first homes, with government schemes making it possible for many to secure a mortgage.

First Home Partner is a shared ownership scheme helping first home buyers purchase a home together with Kāinga Ora. First Home Grants give eligible first home buyers up to $20,000 for a deposit, while First Home Loans allow eligible buyers to purchase a home with a 5% deposit.

“There remain many exceptions to the banks’ rules which we know

inside out. We also specialise in making loan applications much easier. Don’t believe the urban myth that it’s impossible to get finance. We’re still seeing plenty of approvals from banks and plenty of happy customers,” says Mr Capilitan.

“This winter is a good time for Kiwis to get on the property ladder. Get on a bank’s mortgage calculator to see what’s possible, and most importantly, talk to a broker. Homeownership is now in closer reach for many. It remains a great way to help people’s long term security and standard of living,” says Tim Kearins.

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