2022SeptemberPULSEMARKETC21
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WELCOME TO THE September2022 ISSUE OF C21 m ArKet pULSe
Tim Kearins
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.
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C21 MARKET PULSE 01 CENTURY 21 pr O pert Y m A r K et U p DAte 02 Market activity slow through August, early signs of spring lift REINZ CEO, Jen Baird C21 N e W Z e ALAND N e WS 05 Most private sales cost vendors C21 New Zealand, Tim Kearins S e LLING 06 Done-ups more popular than do-ups GA r D e N t I p S 07 Three easy steps for spring-ready outdoor living pr O pert Y m A r K et 08 More migrants able to buy property – a timely boost C ONTENTS S EPTEM b ER 2022UnsplashonAlexanderBaileyimage:Cover
Gisborne saw the median price increase 13.2% from $500,000 to Four$566,000.TAsachieved
All other regions saw annual increases in median price. West Coast recorded the greatest percentage increase in the median price — up 25.0% from $280,000 to $350,000. The median price in Marlborough increased 14.5% from $585,000 to $670,000, and
BY JEN BAIRD, REINZ CEO
Jen Baird, Chief Executive at REINZ, comments: “In August, we saw the national median property price decrease, down 5.9% compared to August last year. Four of the 16 regions reported annual decreases in the median price. With two of those four regions major markets — Auckland and Wellington — affecting the annual movement in the national median price.
“Since the peak in November 2021, we have seen median prices ease. In the past six months, the median price across New Zealand has decreased by 9.6%, while Wellington has seen a decrease of 21.6% — from $995,000 in
Across New Zealand, median prices for residential property (excluding sections) decreased 5.9% annually, from $850,000 in August 2021 to $800,000 in August 2022. Month-on-month, this represents a 1.2% decrease from $810,000 in July. The seasonally adjusted figures show a 2.1% decrease in the median price as we moved from July to August, suggesting weaker performance than expected.
C21 MARKET PULSE 02 CENTURY 21 P ROPERTY MARKET UPDATE
m A r K et AC t IVI t Y SLOW t H r OUGH AUGUS t, e A r LY SIGNS OF S pr ING LIF t
The median residential property price for New Zealand excluding Auckland remained unchanged compared to last year at $700,000. There was a month-on-month decrease of 2.8% from $720,000. Four regions had an annual decrease in the median price in August 2022. Auckland’s median price decreased 8.3% compared to August last year, down from $1,200,000 to $1,100,000. Six of Auckland’s seven territorial authorities (TAs) had a negative
annual median price movement in August. Down 13.4%, Waitakere had the greatest decrease, followed by Auckland City where the median price was down 12.3%.
The Manawatu/Whanganui region was down 6.6% from $610,000 to $570,000, and Northland saw a decrease in the median price of 1.2% from $650,000 to $642,000.
record medians. More information on activity by region and TA record median prices can be found in the regional commentaries section of this report.
In Wellington, the median price was down 9.3% annually, from $860,000 to $780,000 in August 2022. Seven of the region’s eight TAs had negative annual median price movements. Carterton saw the median price decrease 25.5%, while Wellington City was down 21.8%.
Typically a slow month, August market activity was further affected by concerns around rising interest rates and inflation. However, there are early signs of a spring lift as vendors balance price expectations with reality and traffc through open homes increases, 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.
C21 MARKET PULSE 03 CENTURY 21
“That said, some real estate agents are reporting an increase in open home attendance. And while owner occupiers remain a dominant force in the market, first home buyers are
“Despite the median property price easing across the country and supply increasing, sales activity remains subdued. These positive aspects for buyers are offset by higher mortgage rates as rising interest rates and concern around inflation continue to put the brakes on for many potential buyers,” observes Baird.
beginning to re-emerge. As sellers adjust their expectations to meet the market, now is a great time to consider upsizing or downsizing. Although affordability remains a challenge, the relaxing of the Credit Contracts and Consumer Finance Act (CCCFA) and opportunity to negotiate are attracting savvy first home “Augustbuyers.tends to be a quieter month — as we move into the warmer months, we expect to see a usual spring lift,” Baird says.
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February 2022 to $780,000 this month. These are the greatest sixmonth drops each has experienced since REINZ records began in 1992.
Source: REINZ Monthly Property Report 13 September 2022 . $800,000 NATIONAL MEDIAN PRICE: -5.9%49MEDIAN DAYS TO SELL: H AWKE’S BAY 0.7% WELLINGTON -9.3% MARLBOROUGH 14.5% CANTERBURY 4.8% OTAGO 1.5% BAY OF PLENTY 6.5% NORTHLAND -1.2% AUCKLAND -8.3% WAIKATO 0.0% TARANAKI 12.7% MANAWATU / WANGANUI -6.6% NELSON 3.0% TASMAN 0.6% WEST COAST 25.0% SOUTHLAND 9.9% 13.2% GISBORNE ANNUAL MEDIAN PRICE CHANGES
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In late 2020, REINZ released extensive industry analysis that showed engaging an agent to sell a home would achieve the vendor the highest premium in 18 years.
When all is said and done it’s easy to see why, overall, agents continue to achieve the best sales result for a www.century21.co.nzproperty.
The message that private sales often cost money, not save it, is getting through. REINZ’s analysis showed a decrease in the percentage of people choosing to sell their property privately – down to 14% in 2020.
commission, they’ll end up with less on average compared to what an agent would’ve delivered.
It’s also important to consider that because a buyer knows a vendor won’t be paying for commission in a private sale, they often use that as a negotiating tool from the outset to reduce the price accordingly.
C 21 NEW ZEALAND NEWS
DIY vendors often overlook the critical importance of property presentation including decluttering a full house or staging an empty one. What’s more, the increasing use of drone and video footage, virtual tours, 3D floor plans, and extensive social media exposure now play a key role in attracting buyers and achieving top dollar.
BY TIM KEARINS, CENTURY 21 NEW ZEALAND
REINZ’s research has shown time and time again that while selling privately may save vendors
package at considerably less cost than what most individuals could Humanachieve.nature also dictates that many buyers simply don’t like dealing with sellers directly. They’d rather liaise with a professional third party. Other advantages an agent brings include legal protections for vendors, honed negotiating skills, and a wide network of contacts.
With house prices now softening it could be tempting for some Kiwis to think they could sell their home themselves and save some money. However, in this market, a skilled salesperson and negotiator is all Vendorsimportant.need an agent who can firmly push back on cheeky offers yet still close a deal. Today’s buyers are naturally keen to reference current market statistics and sentiment. A good agent will defend a property’s value, focusing on its positive aspects that stand the test of time – such as location, school zones, section, space, storage, condition, sun, and design.
m OS t pr IVAte SAL e S COS t V e NDO r S
Since Covid-19, we’ve noticed more buyers have got used to doing their shortlisting online, rather than by property visits in person. Hence, a property’s online appearance and cut-through is more critical than ever. A good agent and agency can deliver a world-class marketing
C21 MARKET PULSE 05 CENTURY 21
This spring is a timely reminder that homeowners who use a real estate agent can expect to get on average 15% more for their property than they would by selling it privately.
Buyers should select an agent who’s continuing to sell houses for good money. Statistics show in this market, high volume sellers are often low-value sellers. Selling plenty is not as important as selling well.
The realty boss says including virtual tours, fl oor plans, video and drone footage have become the norm, with the likes of videos easily circulated on social media, increasing a property's exposure.
“Do-ups will always remain part of the Kiwi landscape, but plenty of buyers now don’t want to go there given the ongoing cost pressures and delays in and around the building sector. If a property is up to speed, particularly around the likes of kitchens and bathrooms, it’s a real selling advantage in this environment,” says Mr Kearins.
The Century 21 leader says more and more properties are being marketed along the lines of ‘recently renovated’, ‘all done for the next owners to enjoy’ and ‘move in, sit back, and relax’.
C21 MARKET PULSE 06 CENTURY 21 S ELLING
“Kiwis have got more used to letting their fi ngers do walking, and the
standard of online marketing has caught up to enable them to do this more fully. Agents too are more used to walking prospective buyers through with the likes of live video. With many Kiwis opting to stay home more, the quality of a vendor’s online presence is now even more important,” he says.
D ON e -U p S m O re p O p ULA r t HAN DO-U p S
His comments come as renovation costs soar and delays on project times and building supplies continue.
Not only have done-ups become more desirable in this market, but since Covid-19 the importance of a property’s online presentation has grown enormously.
“When the market was hot, houses needing plenty of work were getting snapped up regardless. Now with the market cooling, buyers are more wary of the added stress a do-up
“This is a good time for a cash buyer to snap up a do-up, particularly if they have the required time and money to invest in the property. Then when the market inevitably bounces back, they’ll have a gem which will deliver some good capital gain,” he says.
“If you’ve got a property which is effectively fi nished, then promote that real advantage and highlight it in your online marketing. Plenty of buyers will see your property investments and improvements as one less headache they’ll have going forward,” says Tim Kearins.
presents. Concerns include not be able to secure the extra fi nance for renovations, not to mention the real possibility of cost and deadline blow-outs,” he says.
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“Houses that need little doing to them are arguably more popular than ever as Kiwis are increasingly concerned about taking on additional costs and stress in such times of uncertainty,” says Tim Kearins, Owner of Century 21 New Zealand.
While the current situation may present a challenge for those selling do-ups, it does create opportunities for those still wanting one.
FURNISH AND DECORATE YOUR OUTDOOR LIVING SPACE
Spring is a time for new beginnings, and there's no better way to celebrate the season than by getting your garden ready for the warmer months ahead. This includes decluttering and organising your outdoor living space, weeding and mulching the soil, planting new flowers and plants, and making sure any outdoor furniture or equipment is in good condition.
One of the most important steps to having a spring-ready garden is decluttering and weeding. This means getting rid of any dead plants, debris or clutter that's been collecting over the winter. Weeding is also important, as it will help to remove any unwanted plants or grasses that are taking up space in your Oncegarden.you've decluttered and weed your garden, you can then move on to mulching. Mulching helps to protect the soil from being eroded, and it also helps to keep the moisture levels stable. You can buy mulch from your local garden centre, or you can make your own by using compost, leaves or bark.
PLANT NEW FLOWERS AND PLANTS
Lookingthem.for
Whatever furnishings and decorations you choose, make sure they are weather-resistant and durable. This will ensure that they last through all of the seasons and that you get maximum enjoyment from
more advice on getting your outdoor living area and garden ready for a Spring or summer sale? Our C21 property experts can advice on how you on how to increase it's appeal to potential future owners as part of a full service property appraisal.
When it comes to planting new fl owers and plants, there are a few things you'll want to keep in mind. First, be sure to choose plants that are compatible with the climate and soil type of your area.
is patio furniture sets made from wood. These sets are often more expensive, but they are also very durable and can last for many years.
Once you've chosen your plants, it's time to start planting! Use a trowel or spade to dig a hole in the soil big enough for the plant's root ball, then place the plant in the hole and fill in with soil. Be sure to water the plant well after planting.
C21 MARKET PULSE 07 CENTURY 21 G ARDEN TIPS
S tep S FO r S pr ING- re ADY OU t DOO r LIVING
If you're looking for something a little more casual, you could choose to decorate your outdoor living space with cushions, rugs and throws. This will add comfort and style to the area, and it can be changed out whenever you want a new look.
There are many different types of fl owers and plants to choose from, so take your time and select the ones that best suit your taste and needs. Also, make sure to read the instructions on the plant label carefully, as some plants may require special care or maintenance. If you're not sure which plants to choose, consult a local garden centre or nursery for advice.
One of the most popular choices for outdoor furniture is wicker. Wicker is weather-resistant and can withstand a lot of wear and tear. It also comes in a variety of styles, so you can fi nd the perfect set for your space. Another popular option
t H ree e ASY
DECLUTTER AND WEED THE GARDEN
“While some are relatively new to the country, many have been here for several years but can only buy now because the scheme has effectively fast-tracked their residency. Their arrival into the market this winter is being particularly noticed by Century 21’s Auckland agents which is great given Auckland is at the sharp end of the slow down,” he says.
The Century 21 leader says many of the new migrant buyers are opting for new builds because they only need a 10% deposit, compared to 20% required for most buying an existing house. New townhouses seem to be a popular choice and price point, he says.
“Our agents are reporting more migrants at open homes who have recently been granted residency and are now able and keen to buy their first home in New Zealand,” says Tim Kearins, Owner of Century 21 New Zealand.
His comments come as Immigration New Zealand is busy processing and approving applications under the Government’s fast-track 2021 resident visa scheme which closed at the end of July. Those granted a resident visa can then purchase a house if certain criteria have been “Withoutmet.doubt this is a timely boost for the real estate industry. While many Kiwi citizens are standing back for now, our newest residents see a good opportunity to get into the New Zealand housing market. Having potentially tens of thousands of new buyers out there looking is certainly a positive for many vendors keen to sell well,” says Tim Reportedly,Kearins.most migrants who applied for the 2021 fast-track visas are from the Philippines, China, South Africa and India. Most work in the construction, education, health,
and primary industries sectors. The Government says interest in the simplifi ed resident visa scheme has exceeded their expectations, with 85,000 people out of 215,000 now approved and able to put their roots down in New Zealand.
In the July Monthly Property Report, REINZ observed that first home buyers are re emerging with many agents also reporting renewed interest from investors.
“People see these acres of townhouse developments under construction and wonder who’s going to buy them and move in. Well, the good news is New Zealand’s newest residents are snapping up many, with fi rsthome buyers now also taking their opportunities to get onto the property ladder,” he says.
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C21 MARKET PULSE 08 CENTURY 21 P ROPERTY MARKET
m O re m IG r AN t S A b L e tO b UY pr O pert Y –A TIMELY BOOST