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M A R K E T
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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
DISCLAIMER
WELCOME TO THE
May 2022
ISSUE OF
C21 MARKET PULSE
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
C O N T E N T S M ay
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STYLING YOUR HOME
Activity lightens but not a buyers’ market yet
How to style your home for sale:
Century 21 New Zealand, Tim Kearins
tips to maximise your price
PROPERTY MARKET UPDATE
04
SELLING
Property market slows further;
Many options for frustrated vendors to secure
positive outlook for able buyers
a sale
REINZ CEO, Jen Baird
QUARTERLY AWARDS
06
Century 21 Te Awamutu – a first quarter star
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C21 NEW ZEAL AND NEWS
ACTIVITY LIGHTENS BUT NOT A BUYERS’ MARKET YET
BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
The latest Real Estate Institute figures confirm we’ve re-entered a more balanced and calmer market. Importantly, house prices remain strong, and overall, they’re still up on the same time last year. Despite some headlines, it’s not a buyers’ market yet. Recently REINZ released its Monthly
proposed changes to the CCCFA
April saw a stand-off with many
Property Report for April – a month
set to be enacted next month will
vendors refusing to budge while
which saw median house prices
be positive. However, interest rates
buyers kept their hands in their
across New Zealand increase 8.8%
have continued to rise.
pockets. However, we’re starting
annually. At $875,000, the national median house price is up from $804,362 in April 2021.
All eyes will be on the Reserve Bank’s next Official Cash Rate (OCR) decision on 25 May. Last
to see more Kiwis meet the market, with some very satisfactory outcomes being achieved for both parties.
REINZ noted ‘we’re now in the phase
month the OCR rose by 50 basis
of the property cycle where demand
points to 1.50% – marking the fourth
The 2020 and 2021 froth has
has weakened, sale counts are down
consecutive hike since October last
subsided, properties in demand
but prices remain high.’
year and the biggest jump in over
are still making good money, and
20 years.
interest rates remain below the
It’s easy to compare now to some
historical average. There are plenty
unbelievable prices achieved during
Interest rates have been rising
2020 and 2021. Regardless, most
but they’re still miles off where they
properties remain well ahead of
have been in previous decades.
where they were in 2019. In fact,
Historically, they’ve tended to be
plenty are still selling for 40 percent
around six or seven percent on
Tim Kearins – Century 21 New
more than what the owners paid
average for Kiwi borrowers. Like
Zealand – (0274) 495-547
three or four years ago. Without
house prices, we often compare
tim.kearins@century21.co.nz
doubt the froth is coming off, but
today’s interest rates to the
most vendors are still enjoying
extraordinary period of 2020 and
substantial gains.
2021, but they’re still below the
The property market has taken a big
historical average.
hit since December with the Credit
Even to the casual observer it's fairly
Contract & Consumer Finance
obvious what we are seeing now
Act (CCCFA) making lending
across the New Zealand market –
much tougher. The Government’s
listings are up, and sales are down.
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of good opportunities out there for buyers and sellers keen to act before winter.
www.c21.co.nz
SELL WITH THE BRAND WITH
SUPERIOR CUSTOMER SERVICE Choosing the right agent to help you sell your property is a big decision.
Contact your local C21 Agent today for your no obligation FREE property appraisal.
Visit: C21.co.nz/sell
Licensed Agent 2008 REAA
P R O P E R T Y M A R K E T U P DAT E
PROPERTY MARKET SLOWS FURTHER; POSITIVE OUTLOOK FOR ABLE BUYERS
BY J E N B A I R D, REINZ CEO
April shows a further slowdown in sales activity, more moderate price growth and, as properties stay on the market for longer, it appears favourable to buyers backed by equity, 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. Across New Zealand, the number of
After a stronger than expected
annually to 515), and Northland
residential property sales decreased
October, it returned to negative
since June 2017 (down 36.9%
annually by 35.2% in April 2022,
seasonally adjusted figures – this
annually to 142).
from 7,497 in April 2021 to 4,860.
time marking the introduction of
The sales count for New Zealand
the CCCFA changes and growth
excluding Auckland, decreased
in available stock – shifting the
31.7% annually from 4,815 to 3,287.
market from one underpinned by
Month-on-month, there was a 29.3% decrease in sales count
high demand (2021) to one of high supply (2022).
Jen Baird, Chief Executive of REINZ, says: “We’re now in the phase of the property cycle where demand has weakened, sale counts are down but prices remain high. We’re seeing a slowdown in activity,
for the country. We expect sales
All regions saw an annual decrease
there is more stock staying on the
numbers to fall in the month of
in the number of sales; those with
market for longer, and while annual
April as March is typically one of
the greatest annual percentage
price growth is more moderate, the
the stronger months in the annual
decrease were:
month-on-month trend shows a fall
property market cycle. So, while the nominal change is significant, the seasonally adjusted figures for New Zealand show a decrease of 0.9% moving from March to April – only a marginally weaker result than usual for the month. Looking at the seasonally adjusted figures over time, the pace of the market change is stark. Through mid−2021, the seasonally adjusted month-on-month sales count was negative due to low levels of supply and high demand.
• Marlborough, which decreased 53.6% annually from 84 to 39 • Auckland, which decreased 41.3%
in median prices. “April residential property sales decreased annually by 35.2%
annually from 2,682 to 1,573
across New Zealand, a story
• Hawke’s Bay, which decreased
reflected across all regions.
39.2% annually from 209 to 127 • West Coast, which decreased 38.3% annually from 47 to 29 Excluding lockdown influenced April and May 2020, this was the greatest annual percentage decrease in sales in Marlborough since July 2020, Wellington since January 2009 (down 34.6%
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Looking at the underlying reasons for the continued decrease in sales count, the seasonally adjusted figures provide some insight. Last year sales volumes were underperforming due to supply challenges, and postOctober 2021 when we began to see an influx of stock, it became
ANNUAL ME DIAN PRICE CHANGES $
Record Median Price
12.2%
4.5%
NORTHLAND
AUCKLAND
NATIONAL MEDIAN PRICE:
$875,000
BAY OF PLENTY
16.2%
8.8%
GISBORNE
-1.6%
TARANAKI
38
8.8%
-0.7%
WAIKATO
14.7%
MEDIAN DAYS TO SELL:
11.6%
1.2%
MANAWATU / WANGANUI
HAWKE’S BAY
NELSON
16.1% 31.6%
13.7%
TASMAN
$
7.1% WELLINGTON
MARLBOROUGH
20.8%
WEST COAST
CANTERBURY
13.8%
-5.0%
SOUTHLAND
OTAGO Source: REINZ Monthly Property Report 12 May 2022 .
a market underperforming due to
continue to see opportunity in the
largely expected and factored into
demand challenges.
market as more stock increases
banks’ requirement for borrowers
choice, and prices ease. Owner-
to be able to service mortgage
occupiers are the most present and
increases – providing a buffer for
active in the market, so while we see
most. The challenge will be for
a softening in the mid to low price
those re-fixing their mortgage,”
range, interest is solid in the mid to
Baird observes.
“Falling attendance at open homes and auction rooms, and a decrease in buyer enquiries were reported across New Zealand. Exacerbated by a spate of public holidays through April. Affordability,
high bracket.
Click here to read the full report
uncertainty and changing financial
“Increases to the OCR, most
conditions remain primary
recently by 0.5% in April, have
concerns. Tighter lending criteria,
further impacted affordability, and
LVRs, and increasing interest rates
with the cost to own increasing,
coupled with inflation continue to
property may seem less attractive.
create challenges for some buyers
With a forecast peak of over 3.0%,
– particularly first home buyers
some potential buyers may hold
and investors.
of purchasing in a market where
“Those who are backed by equity and secure in a job market with a low unemployment rate, will
interest rates are likely to rise. For those who purchased property over recent years, these increases were C21 MARKET PULSE
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Q U A R T E R LY AWA R D S
CENTURY 21 GADSBY REALTY IN TE AWAMUTU – A FIRST QUARTER STAR Century 21 Gadsby Realty in Te Awamutu has won several key awards for Century 21 New Zealand’s first quarter of 2022.
The first quarter’s Top Office for
Silver award recipients were
GCC went to Century 21 Local
Christine Stevens (Century 21
Realty in Papakura and Top Principal
Stevens Realty, Mangakino), Jean
for Units went to Ian Pepper of
Johnson (Century 21 Jean Johnson
Century 21 Rural Residential Real
Realty, Dargaville), Kanwar Dhillon
Estate in Huntly.
and Ishan Sikka (Local Realty, Papakura), Winson He (Century
“Our Te Awamutu office continues
Top Property Management Office
to do an absolute stellar job for both
(Over 250 Managements) was won
buyers and sellers alike. They are
by Century 21 Sunrise Realty in
true real estate stars in the Waikato.
Meadowlands and Top Property
Gadsby Realty represents all the
Management Office (Under 250
success a Century 21 franchise can
managements) went to Century 21
Bronze awards went to Fenny Ang
achieve when you work hard and
Dhatt & Co in Manukau.
(Edwards Realty, Botany), Ambi
put unbeatable service first,” says
Dhatt & Co also won three service
Tim Kearins, Owner of Century 21 New Zealand.
awards: Gurpreet Kaur was Administration Team Member for the
21 Queen Street Realty, Auckland Central), Annette Edwards (Edwards Realty, Botany), and Tasreet Dhatt (Dhatt & Co, Manukau).
Basati (Dhatt & Co, Manukau), and Jeh Wasti (The Moshi Group, Wellington Central).
The Century 21 franchise on Te
first quarter; Sid Rana received the
Century 21 New Zealand is currently
Awamutu’s Alexandra Street took
Recognition Award; and Tina Singh
on a franchise ownership drive.
out Top Office for the Quarter for
received the Quality Service Award.
The company has identified many
Units (the number of properties
Sales Assistant of the Quarter went
listed and sold). At the same time, its co-owner Rebecca Fraser won Top Principal for the Quarter for GCC (Gross Closed Commission) and a Platinum sales award. Gadsby Realty sales star Eli Gadsby won Top Salesperson for both Units and GCC, while Julie Elliot of Gadsby Realty was awarded Century 21’s Property Manager for the Quarter.
to Jerry Li of Century 21 Edwards Realty in Botany. Acknowledging sales success in the first quarter, Gold awards went to Eli Gadsby and Paul Wheeler (Gadsby Realty, Te Awamutu), Ian Pepper (Rural & Residential Real Estate, Huntly), and Alen Moshi (Century 21 The Moshi Group, Wellington Central). C21 MARKET PULSE
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untapped locations with opportunities in the likes of Hamilton, Tauranga, and Auckland’s North Shore. “Despite the challenges of 2022, Century 21 continues to deliver for Kiwis up and down the country. We’re now seeking other proven real estate business owners and high‑performing salespeople to join our family and take their careers to the next level,” says Tim Kearins.
STYLING YOUR HOME
HOW TO STYLE YOUR HOME FOR SALE: TIPS TO MAXIMISE YOUR PRICE When you're selling your home, it's important to make sure that it looks its best. You want potential buyers to be able to imagine themselves living in the property, and styling it in a way that maximises its appeal is a great way to do this. LESS IS ALWAYS MORE
MAKE A STATEMENT
adding some decorative touches
One of the most important things
Including statement furniture
to these spaces, such as a pot of
to keep in mind when styling your
pieces is another great way to
flowers or a patio set. This will help
home for sale is that less is more.
maximise the appeal of your home.
to create a good first impression
You want potential buyers to be able
These pieces can be used to create
for potential buyers and make them
to see the property's potential, and
focal points in a room and can help
more likely to want to see the inside
cluttered rooms can make it difficult
to add personality and character.
of the property.
for them to do this. If you have a lot
When choosing furniture for your
of personal belongings, consider
home, it's important to keep in
putting them into storage while
mind the style of the property
your home is on the market. This
and the tastes of potential buyers.
will allow potential buyers to really
At Century 21 we recommend using
see the property as their own.
a stylist or staging company to
LET THERE BE LIGHT (AND AIR)! Another tip is to focus on creating a light and airy feel in your home. This can be achieved by painting walls
assist you in creating a look that will appeal to a wide range of people and showcase your property to its greatest potential.
Finally, it's important to make sure that your home is clean and tidy at all times. This includes both the inside and outside of the property. First impressions are important, so you want to make sure that buyers are impressed from the moment they arrive. A clean and well-presented home will help to maximise your chances of achieving a successful sale.
of natural light comes into the
DON'T FORGET YOUR EXTERIOR SPACES
property. Buyers are often attracted
One of the most important things
your way to styling your home for
to homes that feel bright and
to keep in mind when styling your
sale in a way that will help you to
spacious. A neutral palette of whites
home for sale is that potential
achieve the best possible price.
(either warm or cold – depending on
buyers will often judge a property
For more information on how to
the amount of natural light available)
based on its exterior. Make sure
style your home for sale, or if you're
works well for interiors. Painting
that your garden is tidy and well-
thinking of selling your property,
walls will often be discussed by your
maintained, and that your driveway
please contact us at Century 21.
agent and included in marketing
and porch are clean and clutter-
We'd be happy to assist you!
options for the property.
free. You may want to consider
C21.co.nz
in light colours, and ensuring plenty
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Follow these tips and you'll be on
SELLING
MANY OPTIONS FOR FRUSTRATED VENDORS TO SECURE A SALE With New Zealand’s real estate market witnessing more houses being passed in at auction and the number of days it takes to sell lengthening out, Century 21 New Zealand is encouraging vendors not to give up. Rather, property sellers should change tact to make it happen. “While sale activity has declined, it’s
can at least push play with them
and listings in a similar price band
not a buyers’ market yet. It’s a more
relatively quickly,” he says.
so they can refer people onto your
balanced market, where sellers now face more competition while buyers have more properties to choose from. It’s requiring patience, but properties in demand continue to make good money,” says Tim Kearins, Owner of Century 21 New Zealand. Mr Kearins says it’s important for vendors to remember that demand remains, with new buyers entering the market every month. “Kiwis still want to buy houses, particularly when they keep reading that interest rates are likely to continue rising as the year goes on. Many buyers see this autumn as a bit of a sweet spot, helped by vendors increasingly motivated to sell before winter sets in,” he says. The Century 21 leader says auctions in a quieter market are less likely to
Price by negotiation in quieter times
place,” he says.
potentially loses people. Some
Mr Kearins says it’s worth freshening
buyers are reluctant to be the first to
up the marketing material. This
name a price, or wrongly presume a
includes reordering the photographs
property is worth more than it is.
and property description to reflect
“There are plenty of buyers who drive past a house and say that
what potential buyers have said they like about the property.
will be $1 million and keep driving.
“Some vendors think they’ve got
However, the vendor may now be
an amazing kitchen and so want to
happy to take $900,000. Hence,
lead with that. However, if buyer
putting a price tag on it will only
feedback is all about the outside
help draw more buyers in,” he says.
deck and views, then that’s what
Importantly, for properties to sell, vendors need to hitch their sale
you need to accentuate in your refreshed marketing.”
price expectations to this year, not
One of the best things vendors can
last year. Likewise, buyers need
do in a shifting market is constant
make sure their offer reflects the
local research.
present day, and not undervalue a property on the basis that it could go down further when it may not.
“See what similar properties in the neighbourhood are making right now, not last year.. If they’re still
“A slower market really tests agents,
fetching good prices, your real
and you need to make sure you’ve
estate agent will remind buyers of
engaged someone who’s proactive
that. If local prices have slowed,
“Auctions identify cash buyers with
and hungry as the internet alone
however, the cold, hard reality
pre-approved finance, ready to buy
won’t sell it. People, not advertising,
is motivated vendors will need
today. Even if they don’t buy at your
sell properties in this type of
to adjust their sights. Ultimately,
auction, they’re preferable buyers
market. Look for agents who have an
you can’t beat the buyer,” says
to work with as vendors know they
active network of potential buyers
Tim Kearins.
be successful, however that does not mark the end of the road.
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