Greg Monahan
TEL: 03 546 9455 MOB: 012 851 916 greg.monahan@bayleys.co.nz
WHAT IS HAPPENING TO THE
PROPERTY MARKET? FEATURE RESIDENTIAL PROPERTY Nelson’s Panorama Drive
FEATURE LIFESTYLE PROPERTY Hira’s Lud Valley WHAT’S BEEN SELLING HOW TO BUY AT AN AUCTION some sound strategies to use and win!
Welcome to May
W
What is happening to the market?
e, here at Bayleys Nelson believe the market has shifted and that very soon we will see the tide change and property prices in Nelson could start to rise. As I reported last issue, the sales for each month so far this year have been on a constant incline and as a result, this could potentially be the improvement in the market we have been waiting for. Sales in April have been almost on a par with March , and if you remember, March was our best month in five years! And that includes the boom period. Statistics through from the Real Estate Institute along with commentary from ANZ Chief Economist Cameron Bagrie also suggesting the market is on the mend (details on page #) In this issue: Page 4 Page 5 Page 6
Page 7 Page 8 Page 9 Page 10
Feature Residential Property...145 Panorama Drive, Nelson Feature Lifestyle Property... 15 Frost Road, Hira, Nelson My book... “How to quickly and easily sell your home at top dollar” your opportunity to get a free copy Momentum is Building - Cameron Bagrie’s opinion of the current market. Auctions - How to be a confident successful bidder at your next auction... News headlines - Westpac Picks 4pc Rise in NZ House Prices What’s just sold - Bayleys success this month
Abode is the newsletter of Greg Monahan Licensed Real Estate Agent REA-Act2008
Greg Monahan Lifestyle and Residential Property Specialist Bayleys Nelson 288 Trafalgar St Nelson, NZ +64 21 851 916 cell +64 3 546 9455 business greg.monahan@bayleys.co.nz www.gregmonahan.bayleys.co.nz Skype name: gregmonahan Viber contact: 021851916 Facebook: Greg Monahan - Bayleys Real Estate, Nelson, NZ
Private Sunny Family Living 145 Panorama Drive Set on a large 916m² section and nestled just below the ridge line, this stunning three double bedroom home with its two lounges and a fantastic entertainers’ kitchen and dining area offers so much. From its tasteful red cabinetry, walk in pantry and the large stainless bench top in the kitchen, to its two separate lounges this makes for an ideal family home. Every room has a fantastic view whether inside, or outside on the large full sized deck, making this the perfect place to relax and take in the wonderful Tasman Bay vista. If living in a warm sunny location with views as diverse as the seasons is what you are looking for, then this home is a must see. Call today for more details or to arrange a viewing.
www.bayleys.co.nz/123713
The Ultimate in Country Living 15 Frost Rd Enjoy a country lifestyle with the conveniences of town with this stunning four bedroom timber framed home with plaster finish, on 1.67 hectares of pastoral land. Built in 2003, the house is well placed on a north-facing elevated site, with extensive lawns and easy-care landscaped gardens overlooking the two fully fenced paddocks below. Its well thought out design, includes large open living spaces, expansive north-facing decking and a guest bedroom with ensuite - not to mention the private master suite that occupies the entire upper level. Only 15 minutes easy driving from the heart of Nelson in the Lud Valley, yet far from the highway and the lights of the city, you can enjoy the tranquil setting and expansive views down the valley, whilst reaping the benefits of being part of the Hira community with its primary school, shop and area water supply.
www.bayleys.co.nz/123678
"How to Quickly and Easily Sell Your Home at Top Dollar"
If you are thinking about selling
your home soon, or know someone how might be, then this book is a must have! In all my years of buying and selling houses, I have had different tips given to me, assisting me to get the very best possible price for my property . So in November of 2009 I published a book that encompasses all of those tips and many, many more. A "how to" book that simply covers everything you need to know, from what to clean, what to paint, what to throw away and how to "dress" your house like the professionals. It also covers the need to employ a real estate agent or not.
My book is available to buy at selected bookshops, but as a bonus, I will give a complimentary copy to the first ten (10) abode readers to contact me and simply ask for a free copy. please call me on 0800 BAYLEYS (0800-229-539) or email me greg.monahan@bayleys.co.nz if you would like a free copy.
Momentum is Building ANZ Chief Economist, Cameron Bagrie
T
he Reserve Bank’s decision to cut the Official Cash Rate in March, and the associated drop in mortgage rates, has combined to strengthen the property market further from the trough at the end of last year. This surge of momentum has predominantly been seen in Auckland but has been apparent in most localities, except for Canterbury. How long these rates will stay low is now the pertinent question. Christchurch aside, the housing market is building momentum. This is being driven in part by both the cut in mortgage rates and by displaced persons from Christchurch entering the market. Aside from these factors, the improvement had already been flagged by the increasing number of mortgage approvals in prior months - indicating that the move has some substance behind it. This could have the added benefit of flowing on to building consents which have remained weak for now. The REINZ March housing data reflected a market which is gaining momentum, with nationwide sales rising a seasonally adjusted 4.6 per cent. Sales have continued to lift from the trough experienced in late 2010. As expected, sales in Canterbury fell in March by a further seasonally adjusted 4.1 percent. However, when Canterbury is taken out of the equation, house sales nationally have risen by 5.9 percent. Additionally, house prices are showing signs of stabilisation. In seasonally adjusted terms the REINZ House Price Index eased by 0.2 percent, with average number of days taken to sell a property decreased from 48 days in February to 45 days in March. Mortgage approvals started the year on a firmer note than 2010, suggesting more demand is in the pipeline. According to the Reserve Bank of New Zealand, weekly mortgage approvals have now risen above the level they were at a year ago. The level of weekly housing loan approvals is one of the timeliest barometers of real estate activity and will be one to keep a close eye on. New Zealand’s high external debt and low national savings emphasize the need for the New Zealand economy to rebalance. The economy is set to remain weak over the first half of this year but there remains a solid base from which a springboard style recovery is set to emerge. A less benign inflation outlook is expected to encourage the RBNZ to raise the OCR in December.
How To Purchase Property Through Auction
E
xciting and intensive… the simplest way to buy property is through an auction. However, much like everything in life, preparation is the key to success and long lasting satisfaction. When you bid and buy at auction, the deal is ‘cash’ so it’s important that when you see the house of your dreams, that you complete all your research on the property before putting your hand up on auction day. This includes having independent advice on the contract of sale, checking the title, as well as obtaining any professional reports. Determine how much you want to pay or bid to, so arrange a pre-approval on a mortgage from your bank. Real estate auctions require a 10 percent deposit on the fall of the hammer. If you don’t have a cheque book, sometimes you can pay by other means but only if this is arranged with the seller beforehand. Check that the settlement date suits you. The auction itself is a relatively short process of around 10 to 15 minutes. Plan to arrive a little early. Usually the auctioneer will run through the legal description, chattels and the conduct of auction and say a few nice words about the home. Then he or she will ask for an opening bid. Don’t be afraid to start the bidding off at whatever amount you feel comfortable with. The most important thing about bidding is that you appear confident and strong from the start, without hesitation. Having a bidding strategy and a few tactics up your sleeve can help you win the day. The real estate salesperson can advise you on this before the auction, or attend a few auctions yourself and observe other buyers for ideas. The vendor will have set a confidential reserve price with the auctioneer. The bidding needs to reach this price before the house will sell. If the auction does not reach the reserve and is passed in there is no automatic special right for the highest bidder to negotiate unless it is offered by the auctioneer during the auction. However, if bidding does reach the reserve, the auctioneer will use words such as “it’s on the market” or “we are selling” indicate that this has happened. Most importantly, remember that an auction is the only race where the person who comes last wins!
Courtesy Bayleys Homefront Newsletter May 2011
Westpac Picks 4pc Rise in NZ House Prices NZ Herald 27 April 2011 Westpac economists are forecasting a 4 per cent rise in house prices over the coming year as the housing market stabilises due to low interest rates. The Reserve Bank cut the benchmark Official Cash Rate to 2.5 per cent in March, and is expected to keep it at the record low until either the end of 2011 or beginning of 2012. Along with low interest rates, banks have again begun offering mortgages with as little as a 5 per cent deposit required in a bid to fuel a flat national housing market. Westpac is currently advertising widely its 95 per cent home loans and is also discounts on fees. "The latest drop in interest rates will add zing to the housing market - we now expect 4 per cent house price growth this year," Westpac chief economist Dominick Stephens said in the bank's latest quarterly economic overview. "House price growth should contribute to a slightly better consumer mood and some growth in retail sales, although nobody is talking about a return to the helter-skelter of last decade," Stephens said. Stephens said Westpac was forecasting 1.3 per cent GDP growth in 2011 due to disruption caused by the February 22 earthquake in Christchurch. However, outside of Canterbury the economy was displaying "surprising resilience," he said. "Nationwide, consumer spending and house sales were actually up in March," Stephens said. After a slow 2011, Westpac said reconstruction activity in Christchurch would help propel economic growth to 4.6 per cent in 2012. "Construction costs could rise, and inflationary pressures could force the Reserve Bank to hike the OCR. Rising interest rates and the higher cost of construction will crimp the economy outside of Christchurch. To some extent, we will end up with a two-speed economy, with growth concentrated in a single region," Stephens said. Westpac expected the Reserve Bank will wait until early 2012 before beginning a series of OCR hikes. "The OCR hikes won't start until there are cranes on the skyline in Christchurch. But once interest rates do start rising, they could rise rapidly," Stephens said. "The exchange rate is expected to stay close to its current highs for some months, underpinned by stellar prices for New Zealand's main export commodities. Global food prices are soaring. As the world's biggest net exporter of food relative to GDP, New Zealand is well-placed to benefit," he said. A slowdown in the Chinese economy was also a possibility for later this year, and the exchange rate could fall in that scenario, Stephens said. - INTEREST.CO.NZ
What we have been selling this month...