C21 Market Pulse | September 2023 | New Zealand

C21

WELCOME TO THE September 2023

ISSUE OF C21 m ArKet pULSe

p U b LISH er

Century 21 New Zealand Ltd

CON tr I b U t O r S

Tim Kearins

Jen Baird

Annette Edwards

e DI t O r IAL e NQUI r I e S

Century 21 New Zealand +64 9414 6041

ADV ert ISING e NQUI r I e S

Century 21 New Zealand +64 9414 6041

DISCLAI mer

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A GLI mp S e OF S pr ING IN AUGUS t ’S NU mber S

BY JEN BAIRD, REINZ CEO

The Real Estate Institute of New Zealand’s (REINZ) August 2023 figures show continued optimism and further activity in the property market. While listing numbers remain light, they are up on July and with sales counts having increased this shows some late winter confidence.

REINZ Chief Executive Jen Baird says August often shows a resurgence of activity as winter ends and Spring approaches.

Compared to August 2022, August 2023 saw an increase in the total number of properties sold across New Zealand, up 9.2% from 5,047 to 5,509, and up 9.2% month-onmonth. For New Zealand excluding Auckland, sales counts also increased by 5.2% year-on-year from 3,508 to 3,690.

Across the regions, Northland (4.5%), Auckland (18.2%), Waikato (16.2%), Manawatu-Wanganui (8.6%), Tasman (8.0%), Nelson (12.3%), Marlborough (38.1%), Canterbury (24.9%) and Southland (4.2%) all saw increases in sales counts year-on-year.

“Local agents are reporting that, as new listing numbers continue to decrease, the demand for entrylevel property is holding and fairly strong, and properties are starting to move quicker,” says Baird.

The national median days to sell reduced by 6 days year-on-year and 5 days month-on-month, a change from the trend for many months of increased days to sell. Eleven regions saw a decrease in the median days to sell compared to July 2023, with the biggest decrease occurring in Nelson, which dropped 18 days from 60 days to 42 days.

At the end of August, the total number of properties for sale across New Zealand was 22,750, down 10.6% (2,691 properties) from 25,441 year-on-year, and down 1.5% month-on-month. New Zealand excluding Auckland inventory was down year-on-year from 15,196 to 14,099, a decrease of 1,097 properties or 7.5% annually.

Nationally, new listings decreased by 0.6% from 7,492 listings to 7,444 year-on-year and increased 20.9% compared to July 2023. For New Zealand excluding Auckland, listings decreased 4.2% year-

on-year from 4,749 to 4,550 and increased 18.3% month-on-month.

“The number of properties available for sale over the last three months continues to fall. Listings are still at lower levels compared to August 2022, but only slightly. Monthon-month we have seen a 20.9% increase of stock coming to market, suggesting seller confidence is returning and we can expect a more normal spring ahead for the property market,” comments Baird.

Nationally, the August 2023 median sale price decreased 4.1% year-onyear from $800,000 to $767,000.

Regionally, median sale prices remained down year-on-year except for five regions: Nelson +0.7%; Canterbury +0.8%; Southland +2.0%; Northland +3.6% and Gisborne up 14.8% year-on-year and up 13.0% month-on-month. Auckland, the country’s largest property market, saw its median sale price move back up over the $1 million mark

ANNUAL MEDIAN PRICE CHANGES

to $1,010,000 increasing 2.0% month-on-month, but decreasing 8.2% year-on-year.

Wellington saw month-on-month increases with the median sale price up 2.3% from $733,000 to $750,000, and a 16.9% increase in the number of properties sold from 438 to 512 month-on-month. Days to sell month-on-month decreased from 52 to 38, a 14-day decrease.

“Higher interest rates and the ongoing costs of living pressures continue to impact the market ahead of the looming election. There is a sense across the country that the market has seen the bottom both in terms of prices and sales volumes, but we are all waiting

to see how long it will take to see growth,” comments Baird.

The HPI for New Zealand stood at 3,588 in August 2023, showing a 0.9% increase compared to the previous month. However, when compared to the same period last year, the HPI reflects a 4.7% decline. The average annual growth in the New Zealand HPI over the past five years has been 5.7% per annum. It remains 16.1% below the peak.

Click here to read the full report

Source: REINZ Monthly Property Report 13 September 2023 .

H OW DO YOU D eterm IN e t H e r IGH t ASKING

PRICE FOR A PROPERTY, AND WHAt FAC tO r S DO YOU CONSID er WH e N S ett ING t HIS pr IC e ?

BY ANNETTE EDWARDS, CENTURY 21 EDWARDS REALTY

There are many things to consider when determining the asking price for your property. Begin by organising an appraisal with a trustworthy local agent who understands the area you are selling in.

A good appraisal should be in writing. It will reflect the property's condition, realistically factor in current market conditions and be supported by comparable properties – ideally within a few kilometres of the subject property. Recently sold properties and other similar listings coming onto the market in the area should also be taken into consideration.

Remember an appraisal is not a valuation – only an agent who is registered can provide a valuation. Organising a current market appraisal is just the first step to selling your home for the best possible price. Other important considerations when pricing a property are:

• Local schools: Is the home in zone for desirable schools?

• Proximity: Is the property close to shopping, entertainment, recreational centers and parks?

• Transport: Is there good access to transport in the area? Will people be able to get to work easily?

• Renovations: Home improvements such as a pool, new kitchen or bathroom, and the quality of the update, will also affect the price of your property.

Finally, I like to take the time not just to learn about my vendor's home but also their history in the home. Things such as how long they have lived there, what they love most about the home and why they enjoy living in the area. A great agent will consider all these factors to create a tailored marketing strategy and help you to determine the best listing price for your property.

W e LCO me t H e Se ASON WItH StYLe: EFFORTLESS IDEAS tO Spr UC e Up YOU r HOME FOR SPRING

As the vibrant colours and pleasant scents of spring permeate the air, it's the perfect time to breathe new life into your home.

In this article, we will share easy and creative ideas to add spring style to your home. Whether you're preparing to sell your property or simply want to refresh your living space, these tips will help you create an atmosphere that exudes warmth, beauty, and a touch of springtime magic.

EMBRACE NATURE‑INSPIRED DÉCOR

Bring the beauty of the outdoors into your home by incorporating nature-inspired elements. Arrange fresh flowers in colourful vases, display potted plants or create a small indoor herb garden. Incorporate earthy tones, floral patterns, and botanical artwork to

infuse a sense of spring's freshness throughout your space. These natural touches will instantly brighten and enliven any room.

PLAY WITH LIGHT AND AIRY FABRICS

Swap heavy winter drapes for lightweight curtains or sheer fabrics that allow the sunlight to filter through. Opt for lighter bedding and cushions in pastel shades or vibrant floral prints to create an airy and cheerful ambiance. The softness of these fabrics will evoke a sense of comfort while enhancing the overall spring aesthetic.

INTRODUCE SPLASHES OF COLOUR

Inject bursts of colour into your home to mirror the vibrant hues of spring. Add colourful throw pillows, blankets, or rugs to instantly transform the mood of a room. Consider incorporating shades like soft blues, sunny yellows, or refreshing greens to evoke a sense of renewal and joy. Don't be afraid to

mix and match colours for a playful and lively atmosphere.

CREATE INVITING OUTDOOR SPACES

Spring is the perfect time to enjoy the outdoors, so create inviting spaces to savour the fresh air and sunshine. Set up a cosy seating area on your patio or deck with comfortable outdoor furniture and colourful cushions. Hang string lights or lanterns to create a warm and enchanting ambiance for evening gatherings. Enhancing your outdoor space will not only make your home more appealing but also expand your living area during the pleasant spring months.

PAY ATTENTION TO SCENT

Spring is synonymous with delightful aromas. Introduce scents that evoke the season, such as fresh linen, citrus, or floral fragrances. Use scented candles, diffusers, or room sprays to infuse your home with a refreshing scent that

welcomes visitors and adds to the overall sensory experience.

DECLUTTER AND ORGANISE

A clutter-free home not only looks visually appealing but also creates a sense of tranquillity. Take the opportunity to declutter and organise your space. Clear countertops, organise storage areas, and create a

sense of order throughout your home. This simple yet impactful step will enhance the overall aesthetics and make your space feel more inviting.

With these easy and creative ideas, you can effortlessly add spring style to your home. Embrace nature-inspired décor, play with light fabrics and vibrant colours, refresh your walls with paint, create

inviting outdoor spaces, infuse delightful scents, and declutter your surroundings. By incorporating these elements, you'll create a warm and welcoming environment that captures the essence of spring and appeals to potential buyers or simply elevates your everyday living experience.

Image: Hutomo Abrianto on Unsplash

S UCC ee DING IN re SID e N t IAL pr O pert Y INV e S tme N t

When looking to invest in property, your mindset and perspective plays a pivotal role in shaping your success. Several fundamental attitudes are instrumental in fostering success when undertaking residential investing:

POSSESS A GENUINE EAGERNESS TO LEARN

Given the ever-evolving nature of the real estate market, staying current with the latest trends and developments is essential. You could do this by:

• Finding a mentor. Find someone who is successful in residential investing and learn from them. A mentor can provide you with guidance and support.

• Joining a real estate investment club. This is a great way to connect with other investors and learn from their experiences.

• Read books and articles about real estate investing. The more you know about the industry, the better equipped you will be to succeed.

• Attend real estate investment seminars and workshops. This is a great way to learn from experts and network with other investors.

bE PATIENT

Building a thriving real estate portfolio demands time and is a gradual progress. Don't expect to get rich quick. Be patient and persistent, and you will eventually achieve your goals. It is also important to ensure you set realistic goals and milestones that you can achieve over time.

HAVE A DISCIPLINED APPROACH

Adhering to your investment strategy, even amidst market volatility, is paramount. The real estate market is cyclical. Avoid succumbing to panic and hastily selling properties during market downturns. Uphold your discipline, and in the long term, you'll reap the benefits.

HARbOUR A WILLINGNESS TO EMbRACE CALCULATED RISKS

Understand that no investment is without risk. Residential investing can yield remarkable returns when

you approach risks with careful consideration and a well-thought-out approach. Embrace and be willing to learn from your mistakes.

bE PERSISTENT

There will be times when you want to give up. But if you are persistent and keep working hard, you will eventually achieve your goals. Residential investing holds immense potential for those who embrace the right attitudes and approaches. By cultivating a positive mindset, continuously learning, and remaining dedicated to your goals, you position yourself for success. Remember that success in residential investing is a journey, one that requires patience, persistence, and a willingness to adapt. With the right blend of optimism, education, and hard work, you can navigate the dynamic landscape of real estate and ultimately achieve your aspirations.

ACHIEVING GREAT RESULTS.

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