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Century 21 New Zealand Ltd
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The usual spring lift appears subdued in September, though agents report more first home buyers on the market, and increased attendance at open homes and auctions in some regions. While the median property price shows a slight increase nationally, sales activity is down and properties are staying on the market longer with median days to sell high and inventory levels elevated, 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, median prices for residential property (excluding sections) increased 2.0% annually, from $795,000 in September 2021 to $811,000 in September 2022. Month-on-month, this represents a 1.4% increase from $800,000 in August.
The median residential property price for New Zealand excluding Auckland decreased 0.7% – from $720,000 to $715,000. There was a month-on-month increase of 2.1% from $700,000 in August.
Five regions had an annual increase in median price in September 2022, one remained unchanged. The West Coast region saw the greatest annual increase in the median price – up 30.9% to $360,000.
Auckland’s median price decreased 8.3% compared to September last year, down from $1,140,000 to $1,045,000. Six of the region’s seven legacy territorial authorities
(TAs) had negative annual median price movements: North Shore saw the greatest decrease down 28.6%, followed by Papakura, which was down 16.9%. Looking at the breakdown of property price brands in the North Shore, there was a marked increase in the percentage of properties sold under the million-dollar mark compared to the same time last year, which will have contributed to the decrease in median price.
In Wellington, the median price was down 3.5% annually, from $850,000 to $820,000 in September 2022. Seven of the eight TAs in the region had negative annual median price movements: South Wairarapa had the greatest decrease down 27.5%, followed by Upper Hutt down 14.5%.
Five TAs achieved record medians. More information on activity by region and TA record median prices can be found in the regional commentaries section of this report.
Jen Baird, Chief Executive at REINZ, comments: “In September, the national median property price increased 2.0% annually. Regionally, we are seeing median price movement gradually slow, with 10 of the 16 regions showing an annual decrease.
“Moving from August to September, there was a 1.4% increase in the median price. However, seven regions saw a monthly decrease. The seasonally adjusted fi gures show a marginal 0.2% increase nationally. Regionally, while the seasonally adjusted fi gures show some regions performed better than expected, others underperformed.
“Following an exceptional period of growth last year – spurred by Government stimulus and closed borders seeing Kiwis invest locally –the property market is moderating. Owner occupiers remain a strong buyer pool and agents in some
areas report seeing more fi rst home buyers in the market – enticed by easing prices and less competition. However, property prices are still unaffordable to many, particularly in larger hubs, such as Auckland and Wellington,” Baird says.
“Investors remain largely absent – new tax legislation and rising interest rates have created concern amongst this buyer pool, seeing them step back.
“Overall, buyers remained cautious in September. Increasing interest rates, tighter lending criteria, and concerns around the cost of living continue to challenge the pace of the market. In light of last week’s OCR increase of 50 basis points,
bringing it to 3.5%, with further increases expected, we expect sentiment to remain cautious –despite a strong labour market.
“Agents also report seeing an increase in open home and auction attendance, which we would expect to see as we move into the warmer months. However, the September data, and reports from agents, indicate that the expected spring uplift is not as strong as anticipated,” Baird observes.
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Agents are seeing more first-home buyers and busier open homes. Nonetheless, the latest nationwide figures confirm we’re not seeing the normal sales lift associated with spring.
Recently REINZ released its Monthly Property Report for September – a month which saw median house prices across New Zealand increase 2.0% annually. At $811,000, the national median house price is up from $795,000 in September 2021. Month-onmonth represents a 1.4% increase compared to August.
REINZ reported: ‘While the median property price shows a slight increase nationally, sales activity is down, and properties are staying on the market longer with median days to sell high and inventory levels elevated’.
Buyers are cautious this spring, which is expected with increasing interest rates, cost of living pressures, and ongoing struggles for many to secure a mortgage. As REINZ, has stated, this is not
going to change much in the foreseeable future.
Across New Zealand, the number of residential property sales in September decreased annually by 10.9%, from 5,548 in September 2021 to 4,943. At the same time, the total number of properties available for sale nationally increased by 93.2%, from 13,407 in September 2021 to 25,903. Month-to-month listings were up 5.2% compared to August.
Listings are up as we move into spring which is somewhat encouraging. Kiwis still want to move house, and with less on the market to choose from, many good properties will keep commanding good money. In my observation, the top end is probably holding its own better.
The Monthly Property Report follows the recent release of the REINZ & Tony Alexander Real Estate Survey for October, which concluded despite concerns, buyers are showing signs of returning.
The monthly survey of real estate agents also reported the return of first-home buyers and improving open home attendances. FOMO
BY TIM KEARINS, CENTURY 21 NEW ZEALAND(fear of missing out) is now low, and buyers remain concerned about high interest rates and access to finance.
Securing a good real estate agent and agency has never been more important, with the softer market leading to many of New Zealand’s real estate agents exiting the industry.
Century 21 is holding its agents which is a great indicator of their performance and customers’ views of them. In fact, we’re just launching a new office in the central Auckland suburbs. The new franchise owner is keen to leverage off Century 21’s international reach and reputation for superior service. Rest assured, New Zealand’s newest office will be profiled next month.
www.century21.co.nz
“School zones play a significant role in most families’ assessment of a property. They also help to hold a property’s value when the market is softer like now,” says Tim Kearins, Owner of Century 21 New Zealand.
His comments come as Century 21’s property managers and agents notice a lift in enquiries from prospective tenants and buyers as parents try to get their children accepted into certain schools for 2023.
“Desirable school zones have a measurable impact on a property’s value. In fact, economists in the past have calculated tens of thousands of dollars more for every decile added in Auckland. Identical houses can literally be a street away yet miles apart on price,” says Mr Kearins.
The Century 21 leader says a very desirable school zone is often at the forefront of a property’s marketing too.
“In some central Auckland suburbs, you’ll often see the likes of ‘DGZ’ plastered over advertising hoardings. Otherwise known as Double Grammar Zone, it has become a well-known acronym in the Auckland real estate market which is unlikely to change any time soon,” he says.
Mr Kearins says population pressure on school rolls in recent years
has seen schools enforce their boundaries more strictly. Properties within desirable ring-fenced zones are then limited in supply but high in demand, inevitably leading to higher sales prices.
“A good real estate agent will know all about the school zones and their boundaries, as that will be a common question from buyers who want absolute clarity from the outset,” he says.
He says even if first-home buyers don’t have children or school aged ones at the time, school zones remain attractive as they’re an important factor for future resale. School zones also impact a property’s rental prospects, potentially affecting the cost of rentals enormously.
“Our Century 21 office in Palmerston North is right now receiving a higher level of enquiry from parents looking at the step between primary and intermediate or intermediate and secondary schools – with renters especially
looking for more personally desirable school zones,” says Mr Kearins
Director of Century 21 Dhatt & Co in Manukau, Rupinder Kaur, says in the South Auckland suburbs her team works in many sales are school zone driven.
“Many buyers are happy to pay extra or move into smaller houses if it’s a good school zone. Across ethnicities, buyers ask about the school zone and decile. In fact, before they even start looking, they’ve shortlisted the schools they wish to send their children to,” says Ms Kaur.
“Increasingly, school zones are a powerful consideration for both buyers and sellers alike. At Century 21, we pride ourselves knowing the exact school zones and deciles up and down the country. They’re too important to second guess,” says Tim Kearins.
www.century21.co.nz
After Covid restrictions delayed the launch party, Century 21 Jean Johnson Realty recently enjoyed its official office opening at 6 Poto Street in Dargaville.
Attendees included local clients, businesspeople, retailers, local government representatives, lawyers, tradesmen, friends, and supporters.
The new Century 21 franchise services the wider Kaipara District including Maungaturoto in the south and Opononi in north. Attendees on the night were also informed of the team’s plans to expand into the Whangarei and Waipu areas.
"We’re proud to be flying the Century 21 flag in Northland. Our team is squarely focused on delivering exceptional personalised service, backed by Century 21’s superior brand, reputation, and resources. Despite a softer market, we’ve been thrilled with the interest and business we’ve generated in recent months,” says franchise owner and principal Jean Johnson.
For the past 25 years Jean Johnson has been one of the top listing and selling agents in the Kaipara area, winning many sales awards along the way.
Jean’s daughter, Lee Cocurullo, has been working alongside her mother for 20 years, attaining various real estate qualifications along the way. Lee’s now administration manager at Century 21 Jean Johnson Realty.
Other team members based in the Poto Street office are Val Ridler (administration), Shaffron Hurlock (reception), and Catherine McColl (property management).
“We’re excited to bring this worldclass brand to Northland. At the same time, we’ve got our feet firmly on the ground as a locally focused family business,” says Ms Cocurullo.
ABOVE: The team at Century 21 Jean Johnson Realty in their new office in Dargaville.
Tim Kearins, Owner of Century 21 New Zealand, says the opening night – which he attended –showed a strong level of local support for Dargaville’s newest real estate business.
“Century 21 Jean Johnson Realty is a great addition to our brand here in New Zealand. We warmly welcome the team to the Century 21 family. it’s great they’re already enjoying considerable success,” he says.
Tim Kearins says Century 21’s superior service and global reach will continue to appeal to other high-performing salespeople considering franchise ownership. In fact, opportunities to set up new and successful Century 21 businesses remain available in many other parts of the country, with a new Auckland office set to be announced soon.
www.dargaville.century21.co.nz/
Lee Cocurullo – Century 21 Jean Johnson Realty (09) 439-7575
An open house is a crucial component of the real estate sale process. It provides potential buyers with the opportunity to get a real feel for a property and imagine what it would be like to live there.
Potential buyers are likely to inspect all areas of the property. Here’s a list of four often forgotten places that potential homeowners may check:
When you spruce up your front yard and backyard, pay attention to the sides of your home as well. Potential buyers will likely look at the exterior of your house from all angles. One unkempt side may turn them off from the rest of the home. Make sure the paint and landscaping is in good condition from all angles.
Don’t stuff everything in your wardrobe, or a cupboard, and hope no one will open them. Potential buyers will be interested in seeing the storage capacity. Show it off by organising it. You wouldn’t want a potential buyer to open a wardrobe
just to find a hodgepodge of the belongings you stashed there.
Removing the bulk of storage from your wardrobes and cupboards is a great way to make your storage space appear bigger, but that doesn’t mean your stuff should be shoved under the bed. Not only is it an eyesore, but the potential homebuyer might also see it as a sign that there is not enough storage space in the property. If you have an overflow of items, it is worth seeing if you can store them temporarily at a friend's place or investing in an external storage facility so that your open house is clutter free and has all the space it needs.
Leaving toiletries scattered at the bottom of your shower can make
your whole bathroom appear small, cramped and as though it is lacking in storage. Create storage solutions that may make your space appear bigger and brighter to buyers. For example, neatly organise toiletries and cleaning supplies under the sink.
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 here to offer advice on how you can make your property more appealing to buyers and what strategies you can use to market it effectively.
Contact your local C21 property expert today and learn more about how we can help you sell your home.
