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Property Talk with Mike Pero Cashmere
0800 000 525 mikepero.com
We are now at the tail end of a bitterly chilly winter and are approaching the start of spring where we tend to see a traditional lift in the property market.
*Conditions and normal listing criteria apply – for more information speak to an agent or representative of Mike Pero Real Estate. Some centres in New Zealand may not be included in this promotion.
Mike Pero Real Estate Cashmere 0800 539 832
The Reserve Bank made their first cuts to the Official Cash Rate (OCR) back in early June when they dropped the rate by 0.25% which was the first change of any kind since September 2014. This trend continued in July when another 0.25% cut was announced. This spells good news for homeowners or those looking to enter a mortgage with banks offering lower interest rates however it could also fuel demand and increase house prices. Some
8 Cashmere Road, Cashmere Lindsay Welch
Marilyn Welch
Alan Ray
Nienke Podmore
Lorraine Sheard
Shady Attia
027 577 0216 027 577 0214 021 038 8397 021 067 8568 027 498 4393 021 021 69996
Mike Pero Real Estate Ltd Licensed REAA (2008)
Mike Pero Real Estate Ltd Licensed REAA (2008)
commentators are predicting further OCR cuts before the end of the year with another announcement scheduled for September. According to REINZ statistics, the property market experienced strong sales volumes across the country in July. Their July statistics show that sales volumes increased by 37.8% compared to July and also increased by 9.4% compared to June.
AUG / SEPT ‘15
trusty ‘For Sale’ sign. They continue to play an important role in real estate marketing because they are both recognisable and confirm to the public that a property is on the market and you as a vendor are serious about selling. If you are thinking about buying or selling in the near future then we would love to assist you in this process. Feel free to call us on 0800 539 832 or 03 423 9862. Best wishes,
The national median price was sitting at $465,000 which is an increase of $49,000 (+11.8%) compared to July 2014. In this edition of our newsletter, we look at the importance of the
Marilyn, Lindsay and the Cashmere team 0800 000 525 www.mikepero.com
Mike Pero Real Estate Ltd Licensed REAA (2008)
What’s Happening in the Market? Compared to June, sales volume rose by 12% across the Canterbury/ Westland region with rises of 50% in MidCanterbury, 48% in South Canterbury and 42% in Rangiora. Median Price Breakdown - July 2015 West Coast South Canterbury
$150,000 $231,000
Timaru
$328,000
Mid-Canterbury
$331,250
North Canterbury Rangiora Christchurch
Source: REINZ
$389,000 $445,000 $430,000
REINZ July 2015 regional data for the Canterbury/ Westland region has found that the median price trend is now easing, as is the sales volume trend. The days to sell trend continues to fall. The overall trend for the region is now easing. The median price rose by $15,000 (+4%) compared to July 2014, with prices rising by 10% in Timaru, 6% in Christchurch and 4% in Rangiora, but falling across the rest of the region. The number of days to sell improved by one day in July, from 33 in June to 32 in July. Compared to July 2014 the number of days to sell eased by two days. According to REINZ July statistics, the residential median sale price in Cashmere was $625,000. Fourteen dwellings were sold in the area over an average of 34 days and figures these figures are very steady when compared to June. The median sale price in Hoon Hay was $390,000 with 18 dwellings sold which is an increase of 13 sales compared to June. REINZ Regional Director, Jim Davis, commented that, “the market appears to be reverting more towards its pre-quake pattern with winter months seeing a decrease in listings, pending a rise in new listings in the spring. New subdivisions are largely complete meaning that new supply from these new builds is falling away to more long run levels.”
Thinking Aloud The OCR continues to descend which is good for homeowners and borrowers with the current home loan interest rates sitting between 4% and 5%. So why did the Reserve Bank lower the OCR? Their role is to balance the economy and cash flows and to try and keep some form of stability in our economy. Exporters should benefit from the changes but unfortunately importers and investors have been negatively affected and whenever there is a rise or fall one group will always find themselves on the back foot. As for home owners, the lower the OCR, the better. If the flood gates weren’t already open for home buyers then they certainly are now. However with demand comes higher prices and it’s diff icult to guess when it is going to end, especially in Auckland. The announcement by the Government to encourage new migrants to consider provincial centres is a great initiative and could help move the numbers to smaller centres however this will be small and it will take time. Migration sits at around 60,000 a year and is the biggest cause for demand on accommodation but it is also fuelled by the undersupply and construction over the past ten years. Either way, as a homeowner, you’re better off in most cases than someone renting. You have an appreciating asset and you’re on the property ladder. Despite the crisis in Greece and the slowing of the Chinese economy I think the future remains very positive in our neck of the woods.
Mike Pero Embraces Latest Technology with New Website In mid-August we launch our new website which delivers property information in a cleaner, simplified design while also making the most of new technology like virtual tours and interactive floorplans.
www.mikepero.com
A Sign of Things to Come With the beginning of spring looming ever closer, you can expect to see a stream of new listings enter the market and scores of ‘For Sale’ signs popping up around the streets. This serves as a reminder that the faithful signboard will always play a pivotal role when it comes to buying or selling a home. At Mike Pero Real Estate we pride ourselves on our unique marketing strategies and while technology has taken over large parts of marketing, the signboard still remains an integral part of marketing a property. Signboards serve as a 24/7 billboard for your home and can work in your favour in a number of ways.
Placement It’s important that a signboard is strategically and visibly placed on the property boundary whilst also complimenting your home from the street. When placed correctly, it will suitably standout to those who may travel through your area and are looking to buy. However it also targets those who love your neighbourhood but aren’t actively searching to buy a property - the attraction of a particular house in a certain neighbourhood can be a big drawcard and has the ability to trigger call-to-action.
Visibility A large portion of buyers are inclined to drive past a property before they commit to an open home so having a signboard outside your home makes it easy for them to find, especially on busy roads.
Awareness Word of mouth is a powerful tool and having a signboard outside your property can certainly get your neighbours talking. People who see your ‘For Sale’ sign may talk with family and friends who could be interested in purchasing in the area which will not only extend your audience reach but could lead to a sale. It’s important to note that signboards should be used as part of a wider marketing strategy in conjunction with print and online platforms.