Property Talk with the Puhoi team
HIGH SUMMER 2019
What’s Happening in the Auckland Market? The trend in the median price was flat to decreasing over the past 18 months with the volume trend flat to increasing for the past year. The days to sell trend continues to ease. The House Price Index is showing initial signs of a decline over the past few months leading to the worst one, three and twelve month HPI returns of all the regions.
O
ur seasonally adjusted results tell us that, compared to what we expect when moving from December to January, the observed decrease in median price was slightly more than was expected and the observed large decrease in sales count was much less than expected. The current Days to Sell of 51 days is well above the 10-year average for January which is 41 days. The level of inventory available for sale currently sits at 26 weeks, six weeks more than in January 2018. Compared to Jan 2018: • Median Price down 2.4% • Sales Count down 2.8% • Days to Sell increased 6 days Compared to Dec 2018: • Median Price down 7.3% • Seasonally adjusted median price down 2.4% • Sales Count down 17.4% • Seasonally adjusted sales count up 13.4% • Days to Sell increased 12 days.
Bindi Norwell, REINZ CEO, says “With the lowest median sales price in 35 months and the lowest sales volumes for two years, on the surface it appears as if the Auckland market is slowing down. However, a deeper dive into the New Zealand’s largest city, in fact shows quite a mixed picture with some areas’ median prices falling sharply including the Rodney Ward (-10.6%), Albany Ward (-9.7%) and Franklin Ward (-8.7%) yet other areas saw good annual growth including the Maungakiekie-Tamaki
Ward (+16.6%), Waitemata and Gulf Ward (+3.8%) and Waitakere Ward (+2.3%). New listings were up 12.1% compared to the same time last year. The new AML regulations have slowed down the process of getting properties on the market given the significant level of due diligence required by agents, but it is expected that time will resolve this issue. We’re seeing a similar number of first home buyers in the market, but fewer investors, which is making it a little bit easier for first home buyers due to less competition. “
Median Sale Price for January 2019 AUCKLAND REGION Waitakere City
$800,000 $750,000 $849,000
Rodney District Papakura District
$650,000 $920,000
North Shore City
$821,000
Manukau City Franklin District Auckland City
$650,000 $875,000
Disclaimer: Every effort has been made by Mike Pero Real Estate to ensure that the information contained in this publication is complete and accurate. Prospective purchasers and sellers should make their own enquiries to verify any information contained herein. While our information has been prepared with due diligence and care, Mike Pero Real Estate does not accept liability for any errors, mistakes, omissions, or inaccuracies whether expressed or implied.
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Annual Median Price Changes
REINZ Residential Statistics Report for January 2019 Two-tiered real estate market continues as 5 regions see record prices, but Auckland and Canterbury see prices fall.
JANUARY 2018-2019
“January has pointed to a two-tier market continuing around the country with Auckland and Canterbury experiencing a slow down in price, but the rest of the country has seen strong price growth, including five regions achieving record median prices. This increase in price once again highlights how the lack of supply is continuing to push up house prices, therefore, it’s essential that as a country we address this fundamental issue sooner rather than later.” says REINZ Chief Executive, Bindi Norwell. Median house prices were recorded as follows: Northland
$485,000
Auckland
$800,000
Waikato
$550,000
Bay of Plenty
$585,000
Gisborne
$333,000
Hawke’s Bay
$445,000
Manawatu/Wanganui
$348,000
Record Median Sales
Taranaki
$385,000
Increased
Wellington
$562,000
Stable
Tasman
$589,000
Nelson
$566,133
Decreased
Marlborough
$477,000
REINZ House Price Index (HPI) - increases 3.1% annually
West Coast
$175,000
The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.1% year-on-year to 2,740. This is down -0.5% from its peak in October last year.
Canterbury
$431,900
Otago
$475,475
The HPI for New Zealand excluding Auckland increased 8.1% from January 2018 to a new record high of 2,691. The Auckland HPI decreased -2.1% year-on-year to 2,799.
Southland
$277,500
The REINZ HPI saw 10 out of 12 regions experience an increase over the past 12 months, highlighting the overall continued strength of the property market. The exceptions were Auckland and Canterbury.
NZ excluding Auckland
$473,300
NEW ZEALAND
$550,000
In January the Manawatu/Wanganui region again had the highest annual growth rate, a 16.0% increase to a new record high of 2,891, followed by Gisborne/Hawke’s Bay in second place with an annual growth rate of 15.7% to a new record high of 2,691 and in third place was Southland with a 15.2% annual increase to a new record high of 2,844.
Days to Sell - highest in nearly 7 years The median number of days to sell a property nationally increased to its highest level in nearly 7 years (since February 2012). In January the median number of days to sell a property increased by 2 days from 46 to 48 when compared to January last year. For New Zealand excluding Auckland, the median days to sell remained steady at 46. However, Auckland saw the median number of days to sell a property increase by 6 days from 45 to 51 – the highest number of days to sell in just shy of 10 years – since February 2009. Marlborough had the lowest days to sell of all regions at 33 days, down from 42 at the same time last year. “While January’s median number of days to sell usually tends to be on the higher side, January 2019 has been exceptionally so, with the national number of days to sell the highest in nearly seven years. It’s a similar picture when you look at Auckland, with the highest number of days to sell in nearly 10 years. Therefore, the comments that we made last month around a realistic approach to market value may help vendors sell their property in a more reasonable timeframe, still hold true,” says Norwell.
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The REINZ House Price Index shows: New Zealand
+3.1% on Jan 2018
NZ ex Auckland
+8.1% on Jan 2018
Auckland
-2.1% on Jan 2018
New Zealand
+0.1% on Dec 2018
NZ ex Auckland
+0.9% on Dec 2018
Auckland
-0.8% on Dec 2018
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
One Step Ahead Preparing your garden well for winter will stand you in good stead for the spring.
As temperatures begin to dip and the last of the colour fades in the flower beds, it can be difficult to get excited about donning the gardening gloves, but setting aside a weekend or two in the garden before the colder weather settles in will reap many rewards in spring.
Out with the old When the roses stop flowering and stone fruit has been harvested it is time to have a tidy up, cutting back old growth to prepare for the winter. Prune fruit trees to help protect from disease as well as pests while aiding preparation for flowering and fruit production. Cut back hedges and remove any dead wood, this will help keep things looking spick and span over the winter months. It will also prepare the plants for new growth.
Roses can either be deadheaded for autumn flowering or pruned right back ready for a new season.
In with the new If you want to add trees or shrubs to your garden, autumn is the perfect time to plant. The warm soil and moisture provide ideal conditions for root growth giving new additions a head start, ensuring they have time to settle in before winter. Plant or transplant trees in autumn when conditions are favourable to encourage root growth and resilience during the winter months. Plant daffodils, snowdrops, and other cheerful spring bulbs now for bursts of colour in the spring.
Feed the soil to give your new plants a healthy start by adding fertilisers or compost before planting. Consult the experts at your garden centre for advice on what to use.
Top tip for beautiful spring bulbs March, April, and May are the optimum months for planting bulbs. You will have more success with tulips if the bulbs are chilled in the fridge for up to eight weeks before planting. Bulbs love well-drained soil, so planting in potting mix in a large porous pot is ideal. Plant bulbs close together in groups rather than spreading them out. This will provide maximum impact when they burst into life as winter ends.
Re-sow your lawn or plant any new lawn areas, they will thrive in the autumn conditions and you will avoid weed problems which can become an issue in spring.
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