Summer 2017
Despite challenging conditions, residential prices increase across New Zealand Median residential property prices across New Zealand have increased by 1.2% year-on-year to $525,000 according to the latest data from the Real Institute of New Zealand (REINZ) – source of the most complete and accurate real estate data in New Zealand. Nationally, excluding Auckland, median prices increased 5.7% year-on-year and Auckland median prices remained flat at $845,000. However, on a month-onmonth basis, Auckland’s median price increased by 1.2% or by $10,000.
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Contributing to the overall increase, six regions across the country experienced double-digit median price increases in September year-on-year: Tasman (up 19.3% to $572,500) Wellington (up 10.6% to $531,000) Northland (up 14.4% to $446,000)
Gisborne (up 14.9% to $270,000) Hawke’s Bay (up 18.3% to $392,000) Southland (up 10% to $220,000)
Only two regions experienced price decreases during September (compared to September 2016) – West Coast (down 15.6% to $208,500) and Canterbury (down 3.2% to $426,000). Bindi Norwell, CEO at REINZ says: “Prices across the country increased in all but three regions, evidence that the market continues to grow despite some challenging conditions – including the LVR restrictions and banks continuing to tighten lending conditions. Much of the increase has been driven by the buoyancy in the regions.”
Soggy start to spring impacts sales volumes The number of properties sold during September fell 26.2% year-on-year (from 7,352 to 5,428) the lowest number of properties sold in the month of September for 6 years. Nationally, excluding Auckland, volumes decreased by 23.7% year-on-year. Looking at the regional picture, again all 16 regions in the country experienced a decrease in the number of properties sold on a year-on-year basis. Regions with the biggest reduction in volumes were Tasman (down 37%), Southland (down 34%) and Auckland (down 31.5%). Marlborough experienced the lowest number of sales since January 2012 (down 27.4%). The month-on-month figures provide a more positive picture, however, with a number of regions experiencing an increase in the number of sales in comparison to August, and two regions experienced double-digit growth – Gisborne (up 25%) and Taranaki (up 11.4%). “The soggy start to spring combined with the ‘election effect’ has had a significant impact on the number of sales across the country – this is the lowest number of sales in eight months, and the lowest number of sales in the month of September for six years. However, it’s not all doom and gloom as there are pockets of the country experiencing increases month-on-month and median prices are increasing in the majority of regions across the country.” “Overall, the New Zealand housing market continues to remain in a strong position. While volumes are down, median house prices across the country have increased again. As the weather warms up we expect the market to pick up again,” concludes Norwell.
“ We’ll go to great lengths to sell your home for more, in less time and with lower fees.” 0800 000 525 www.mikepero.com
What’s Happening in the Market?
The trend in median price is continuing to rise, with the trend in sales volume decreasing. The days to sell trend is now easing. The House Price Index has shown a small increase over the past few months.
T
he median price across the region rose $21,500 (+5%) compared to September 2016. Prices rose 36% in Otorohanga and 27% in Waitomo. Compared to August the median price stayed the same, with prices rising 36% in Otorohanga but falling 20% in Waitomo District. On a seasonally adjusted basis, prices fell 3% compared to August indicating that the median price is typically expected to rise slightly in September. Compared to August, sales volumes fell 6%, with sales increasing 40% in Otorohanga District, but decreasing 58% in Waitomo. Compared to September 2016, sales across the region fell 27% with sales increasing 54% in South Waikato District but falling 56% in Hauraki District. On a seasonally adjusted basis, sales for September decreased 3% compared to August, indicating that the decrease in sales volume was a little greater than expected for September.
The number of days to sell improved by four days compared to August, from 39 days in August to 35 days in September. The number of days to sell eased by five days compared to September 2016. Over the past 10 years the average number of days to sell during September for Waikato has been 46 days. The level of inventory across the region is 15 weeks, an increase of five weeks compared to September 2016. REINZ Chief Executive Officer, Bindi Norwell, says: “There is huge confidence in the Waikato, particularly in the greater Hamilton area. There is still a lot of buyer interest from people looking to relocate from Auckland with about 35% of buyers from out of town. Due to lack of available supply, prices remain relatively firm and investors with a robust equity position are still active in the market. Demand in the north-eastern suburbs has picked up, largely due to new builds being completed and the new Rototuna High School zone.”
Median Price Breakdown - September 2017
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$525,000
Median days to sell in SEPTEMBER
National Median House Price
Residential property prices across New Zealand increased by 1.2% year-on-year to $525,000. Nationally, excluding Auckland, median prices increase 5.7% year-on-year and Auckland median prices remained flat at $845,000. “Prices across the country increased in all but three regions, evidence that the market continues to grow despite some challenging conditions including the LVR restrictions and banks continuing to tighten lending conditions. Much of the increase has been driven by the buoyancy in the regions,” says Bindi Norwell, REINZ CEO at REINZ.
Northland
$446,000
Auckland
$845,000
Waikato
$480,000
Bay of Plenty
$547,500
Gisborne
$270,000
Hawke’s Bay
$392,000
Manawatu/Wanganui
$271,000
Taranaki
$360,000
Wellington
$531,000
Nelson
$481,000
Marlborough
$396,000
Tasman
$572,500
West Coast
$208,500
Canterbury
$426,000
Otago
$397,000
Southland
$220,000
NZ excluding Auckland
$428,000
NEW ZEALAND TOTAL
$525,000
The REINZ House Price Index shows: National
+2.1% on Sept 2016
National ex Auckland
+7.0% on Sept 2016
Auckland
-0.7% on Sept 2016
National
+0.7% on Aug 2017
National ex Auckland
+0.8% on Aug 2017
Auckland
+0.7% on Aug 2017
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi
Source: REINZ
Outdoor Oasis
With the promise of summer, and the festive season just around the corner, it is time to maximise the potential of your outdoor area. By Mike Pero, Chief Executive, Mike Pero Real Estate
Whether you have a porch, patio or pool, there’s plenty you can do to improve your outdoor experience at home and add value when it comes time to sell.
TAKE A SEAT It is time to liberate your outdoor furniture from storage, and make any necessary repairs to torn upholstery and treat fading wooden pieces to a moisturising coat of oil. If your outdoor furniture has seen better days, it may be time to give yourself an early Christmas gift and invest in a new set. Think carefully about how you use your outdoor areas. Consider a table and chairs for al fresco dining, sun loungers for beside the pool, outdoor bean bags made from quality nautical fabric, and occasional stools and coffee tables for relaxing in the shade. Then consider the various configurations that best allow for high traffic areas, and designate different zones with an outdoor rug.
CLEAR THE DECKS Attending to maintenance at the beginning of the season will stand you in good stead for the rest of summer so you can fully enjoy the good life at home. If you have a timber deck or porch,
Keep an immaculate lush lawn all year round with a smart automated mowing system, or for smaller areas consider laying artificial grass, which looks as good as the real thing with no maintenance or watering required.
a fresh lick of paint or stain will revitalise these spaces. Hiring a water blaster from your local home depot is an easy and effective way to refresh concrete patios, driveways and paths. If you have a pool, now is the time to ensure all the pumps are working and the pool chemicals are balanced.
GREEN FINGERS It’s that time of year to get planting and repotting to create the ultimate lush outdoor oasis. Potted plants, shrubs, herbs and flowers can add a burst of colour to otherwise unadorned spaces, and, if space is at a premium, walled or vertical gardens can be created with relative ease to camouflage unsightly fences. Hang trailing plants in baskets or woven macramé hangers to add interest and soften architectural features.
ENTERTAINER’S DREAM For more substantial, long-lasting additions that will completely transform your outdoor living spaces, you may wish to enlist the services of a seasoned landscape architect. Choose a company that offers the complete design package, from plant selection, to hardscaping, to installation of pergolas, louvres, swimming pools, built-in barbeques and outdoor fireplaces. Or, for the Kiwi DIY approach, there are fabulous design blogs to browse where you’ll find endless inspiration to spark your creativity.
HouseMatters
with Mike Pero Real Estate
MIKE PERO REAL ESTATE HAMILTON LAKES has arrived in Hamilton! A fresh new approach to buying and selling your property is here. Call us for a FREE no obligation appraisal and be introduced to the smartest way to sell your home.
Rowena Diamond 027 260 1808
Mike Pero Real Estate Ltd Licensed REAA (2008)
rowena.diamond@mikepero.com
0800 000 525
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A Real Show Stopper Mike Pero Real Estate Ltd Licensed REAA (2008) Statement relating to passing over of information - mikepero.com/receivinginformation