Property Talk with the Puhoi team
SUMMER 2018
What’s Happening in the Auckland Market? The trend in the median price has flattened over the past 18 months with the volume trend flat for the past year. The days to sell trend continues to ease. The House Price Index is remaining fairly steady, remaining effectively the same over the past two years.
O
ur seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed increase in median price was a fraction more than what was expected and the observed large increase in sales count was more than expected. The current Days to Sell of 36 days is more than the 10-year average for October which is 33 days. The level of inventory available for sale currently sits at 25 weeks, four and a half weeks more than in October 2017. Compared to October 2017: • Median Price up 1.8% • Sales Count up 15.2% • Days to Sell decreased 1 day Compared to September 2018: • Median Price up 1.5% • Seasonally adjusted median price up 0.4% • Sales Count up 16.7% • Seasonally adjusted sales count up 6.8% • Days to Sell decreased 3 days.
Bindi Norwell, REINZ CEO, says “The Auckland market had a more upbeat feel during October due to a significant increase in listings (+20.1%), including new developments in key residential suburbs. Days to sell also decreased by three days year-on-year and the median price was at its highest point in seven months showing signs of a positive market. Additionally, a record median price was recorded for Waitakere City of $825,500. There are plenty of buyers keeping demand at a high level, however they are being cautious. There has been
an influx of first home buyers that are looking at higher priced properties as well as affordable properties. There has also been a big interest in KiwiBuild properties. Investor enquiry has decreased due to uncertainty of how new legislation will impact profitability. As always, good quality properties are selling fast. The market will most likely continue in this upbeat state until Christmas.”
Median Sale Price for October 2018
$865,000
AUCKLAND REGION Waitakere City
$825,500 $870,000
Rodney District Papakura District
$680,000 $1,000,000
North Shore City Manukau City Franklin District Auckland City
$805,000 $638,500 $972,000
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.
0800000 000525 525 mikepero.com mikepero.com 0800
Annual Median Price Changes
REINZ Residential Statistics Report for October 2018 Spring sprouts into action with highest number of sales in five months.
OCTOBER 2017-2018
“October saw the real estate market spring back into action with the volume of sales increasing nationally by 15.5% when compared to the same time last year. This is the highest number of sales for a month of October in two years and is the equivalent of an additional 29 houses sold each day across the whole month. It should also be noted that last year’s sales volumes were impacted by the election” says REINZ Chief Executive, Bindi Norwell. Median house prices for October 2018 were recorded as follows: Northland
$487,500
Auckland
$865,000
Waikato
$522,000
Bay of Plenty
$580,000
Gisborne
$310,000
Hawke’s Bay
Record Median Sales Increased Stable Decreased
$464,123
Manawatu/Wanganui
$344,000
Taranaki
$380,000
Wellington
$592,500
Tasman
$610,000
Nelson
$518,000
Marlborough
$381,000
West Coast
$165,000
REINZ House Price Index
Canterbury
$465,000
The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.8% year-on-year to 2,756 a new record high for the country.
Otago
$480,000
Southland
$255,000
NZ excluding Auckland
$479,250
NEW ZEALAND
$562,000
The HPI for New Zealand excluding Auckland increased 7.9% from October 2017 to a new record high of 2,649. The Auckland HPI decreased -0.4% year-on-year to 2,885 – the first decrease in 12 months. The REINZ HPI again saw 11 out of 12 regions experience an increase over the past 12 months, highlighting the continued strength of the property market. The only exception was Auckland. This month the Manawatu/Wanganui region had the highest annual growth rate of 15.6%, followed by Southland in second place with an annual growth rate of 15.1% and in third place was Gisborne/Hawke’s Bay with a 12.6% annual increase.
Days to Sell The median number of days to sell a property nationally increased by 1 day from 34 to 35 when compared to October last year. For New Zealand excluding Auckland, the median days to sell increased on an annual basis by 2 days from 32 to 34. Auckland saw the median number of days to sell a property decrease by 1 day to 36 days (down from 37 in October 2017). This is the lowest median days to sell since December 2017.
0800 000 525
mikepero.com
The REINZ House Price Index shows: New Zealand
+3.8% on Oct 2017
NZ ex Auckland
+7.9% on Oct 2017
Auckland
-0.4% on Oct 2017
New Zealand
+0.5% on Sept 2018
NZ ex Auckland
+1.1% on Sept 2018
Auckland
-0.1% on Sept 2018
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi
Source: REINZ
WHAT IS AML? AML stands for ‘anti-money laundering’. Mike Pero Real Estate wants to let you know of changes to legislation that are going to apply to the way we will be working with you in the future. What is this all about? New Zealand has passed a law called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 which will make it harder for criminals to launder money. This law already applies to many businesses such as lawyers and solicitors. As from 1 January 2019 real estate agents must also comply with these requirements. This means that we need to put processes in place to ensure we can identify our customers, know their addresses and, in some cases, know the sources of our customers’ funds. The AML/CFT law does this because the services law firms and other professionals offer may be attractive to those involved in criminal activity. Accountants from 1 October and any Real Estate Agents you may deal with after 1 January 2019 will also be brought into this new regime. The law says that law firms and other professionals must assess the risk they may face from the actions of money launderers and people who finance terrorism and must identify potentially suspicious activity. To make that assessment, we must obtain and verify information from prospective and existing clients about a range of things. This is part of what the AML/CFT law calls “customer due diligence”.
Customer Due Diligence Requirements Customer due diligence (“CDD”) requires a law firm to undertake certain background checks before providing services to clients or customers. Lawyers must take reasonable steps to make sure the information they receive from clients is correct, and so they need to ask for documents that show this. We will need to obtain and verify certain information from you to meet these legal requirements. This information includes: • your full name; • your date of birth; • your address.
To confirm these details, documents such as your driver’s licence, passport or your birth certificate and documents that show your address - such as a current bank statement, rates demand or utility bill - will be required. We will ask you for these when the time comes (usually when we receive an instruction from you or when there are some changes in your circumstances). For new clients, we will need to undertake CDD before we commence work and this will be included in our engagement process. If you are seeing us about company or trust business, we will need information about the company or trust including the people associated with it (such as directors and shareholders, trustees and beneficiaries). If you are from overseas we may need to verify your identity in more detail. We may also need to ask you for further information. We will need to ask you about the nature and purpose of the proposed work you are asking us to do for you. Information confirming the source of funds for a transaction may also be necessary to meet the legal requirements.
If you cannot provide the required information These changes take effect from 1 January 2019 so after that time If we are not able to obtain the required information from you, it is likely we will not be able to act for you. Because the law applies to everyone, we need to ask for the information even if you have been a client of ours for a long time. Before we start working for you, we will let you know what information we need, and what documents you need to show us and let us photocopy. Ideally, we will want to verify this information in person. If that is not possible we will give you guidance on who else can verify your information. Generally speaking, customers and users of our services do not need to do anything. Simply be aware that some extra information will be required from you when we do business with you.
0800 000 525
mikepero.com
PUHOI
3
1
PUHOI
Time to Escape to the Country
ID# RX1677097
So Much For So Little!
Puhoi / Mahurangi West / Warkworth
ID# RX1532495 ID# RX1532973 ID# RX1532975
PUHOI
Cowan Bay Coastal Estate - Only 4 Left!
PUHOI
3
Price Reduced! Superb Value in Puhoi
0800 000 525
ď Ź
mikepero.com
2
2
ID# RX1706968
2
Puhoi River Magic!
WAINUI
1
1 ID# RX1427966
4
2
This Ticks All The Boxes Mike Pero Real Estate Ltd Licensed REAA (2008) Statement relating to passing over of information - mikepero.com/receivinginformation