Mid-Winter 2017
It might be our coldest months of the year, but regional strong growth continues, despite Auckland price growth slowing. According to Bindi Norwell, REINZ CEO “While median prices in Auckland have increased slightly year-onyear, the City of Sails had the second lowest rate of growth in the country in comparison to the 8% seen in June 2016 and 27.1% increase seen in June 2015. This is evidence that the ‘Supercity’ has showed signs of price growth slowing down – if you look at the monthon-month figure it shows a drop of -0.8%.
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“However, most regions across the rest of the country experienced double-digit (or close to it) growth and record median prices have been seen in three regions this month – Bay of Plenty ($555,000), again in Manawatu/Wanganui ($280,000) and Tasman ($581,000) highlighting the buoyancy across the rest of the country and the normal property cycle where regions are typically behind Auckland in terms of the growth curve,” continues Norwell. According to REINZ June 2017 statistics, sales volumes across the country have continued to decline – in Auckland they are down -33.2% for the year to June and nationally they’re down -24.7% for the same period. The regions that experienced increased volume this month were Tasman (which saw an increase of 25%) and the West Coast (a 3% increase yearon-year). The number of properties available for sale rose by 1,895 in June compared to 12 months ago, although the number of properties for sale in the Auckland region has increased by 3,097 (57%) providing more choice to buyers. Excluding Auckland, the number of properties for sale fell by 1,203 (-7.4%). Compared to June 2016 the number of listings rose 4.4% in Canterbury, 5.0% in Wellington and 4.5% in Waikato. The largest declines occurred in Northland (-367), Manawatu/Wanganui (-353) and Southland (-269). For me, real estate isn’t work - it’s a passion, and I would love to hear from you if you are thinking about buying or selling in the near future. You are welcome to drop in to the office, or meet me in your home or a cafe for a chat over coffee. Mike Pero Real Estate prides itself on doing business the right way by ensuring a positive experience and putting customers first that means you! In the meantime, grab yourself a cuppa and have a read of this newsletter for some helpful tips and inspiration regarding the property market in New Zealand.
“ 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 the median price is now steady with the volume trend continuing to fall. The days to sell trend continues to ease. The overall trend for the region is now also easing.
C
ompared to June 2016 the median price rose $20,500 (+2.5%), with prices rising 18% in Auckland City, 12% in Manukau and 4% in Franklin. Compared to May, the median price fell 1%, with prices rising 3% in Rodney, Auckland City and Waitakere, but falling across the rest of the region. On a seasonally adjusted basis Auckland’s median price rose 1% compared to May, indicating that the median price usually falls by more in June. Sales volume in the Auckland region fell 20% compared to May, with sales falling 11% in Waitakere, 15% in Manukau and 17% in Papakura. Compared to June 2016 sales fell 33% with volume up 12% in Papakura but falling 20% in North Shore and 26% in Franklin. On a seasonally adjusted basis sales volumes fell 6% compared to May indicating that the drop in sales from May was greater than expected.
The number of days to sell improved by two days in June, from 40 days in May to 38 days in June. The number of days to sell eased by seven days compared to June 2016. Over the past 10 years the average number of days to sell during June for Auckland has been 35 days. There are now 21 weeks of inventory in the Auckland region, an increase of 12 weeks compared to June 2016 (+124%). REINZ Chief Executive Officer, Bindi Norwell, says: “The Auckland region continues the trend of falling sales volumes, increasing number of days to sell and strong growth in inventory. Anecdotal evidence suggests this is due to both first home and investor buyers exiting the market due to more stringent bank lending requirements and general market uncertainty. On a more positive note, prices are steady and are not expected to decline much, if at all.”
Auckland price growth slowing, regional strong growth continues. New Zealand’s property market is showing all the signs of being a two-tier market with Auckland median house prices rising 2.5% year-on-year, but the rest of the country (excluding Auckland) showing growth of 11.4% year-on-year. Three regions hit new record high median sale prices in June 2017 as the national median price rose 5.8% to $429,000 year-on-year. Regions seeing record median prices were Bay of Plenty, Manawatu/Wanganui, and Tasman, highlighting the buoyancy across the rest of the country and the normal property cycle where regions are typically behind Auckland in terms of the growth curve.
$529,000
national median sale price
36
Median days to sell in JUNE
The national median house price rose to $529,000 up from $500,000 year-on-year. Median house prices for June 2017 were recorded as follows: Northland Auckland
$425,000 $850,500
Waikato
$465,000
Bay of Plenty
$555,000
Gisborne Hawke’s Bay Manawatu/Wanganui Taranaki Wellington Nelson Marlborough Tasman West Coast Canterbury Otago Southland NZ excluding Auckland NEW ZEALAND TOTAL
$260,000 $373,000 $280,000 $325,000 $530,000 $490,000 $395,000 $581,000 $250,000 $435,500 $385,000 $230,000 $431,000 $529,000
The REINZ House Price Index shows:
Median Price Breakdown - June 2017
National
+2.8% on June 2016
National ex Auckland
+9.2% on June 2016
Auckland
-0.6% on June 2016
The REINZ HPI indicates that activity nationwide year-on-year has lifted 2.8%, down in Auckland by 0.6%, and up outside Auckland by 9.2%. However, month-on-month activity nationwide was down 0.3%, down 0.5% in Auckland and up 0.1% outside Auckland, indicating strong price growth in some regions and a stable market in Auckland. For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
Home Staging is Worth Considering There are many things that you can do to prepare your home for sale such as tidying the garden, decluttering, spring cleaning, and carrying out repairs and maintenance. However, these days the expectations of buyers are very high and if you want to sell your home quickly and for the maximum price, you need to make sure that your home looks great and appeals to the right buyers – remember you only get one chance to do it right! Home Staging can help to prepare and showcase your home properly for sale, and it is not just for the high-end properties, any property can benefit from quality staging. So, what exactly does a home stager do, and how can home staging help to sell your home? WHAT DOES A HOME STAGER DO? Home stagers are similar to interior decorators, except they are not focused on creating a home that suits your personal taste, instead they are skilled at creating the right first impression of your home. They will work out the right look for your house as a whole, as well as room by room, so that your home appeals to a broad range of tastes, and is perfectly positioned for the type of buyer that will be most attracted to your property. They may suggest a full staging of your home or simply to replace the odd piece of furniture, and to rearrange the layout, with the focus more on decluttering and assessing what works and doesn’t work. They may even recommend repairs and help add finishing touches before photos are taken or for open home showings. Some of the reasons why you should consider home staging when selling your home include: MAKE YOUR HOME EASIER TO SELL Home Stagers will help make your home look its best in photos, and photos are the best way to market a home! Whether the photos are online, in print, or on TV, if your property looks great in the photos, it will attract more buyers to ask for information, and come along to the open homes.
MAKE YOUR HOME STAND OUT FROM THE COMPETITION Home Staging will help differentiate your home from other homes for sale in your local area or within a similar price range. When a staged home looks great and is move in ready, home buyers will be impressed and competing homes will pale by comparison. HELP SELL YOUR HOME FASTER AND FOR A HIGHER PRICE Presenting your home at its very best will attract more viewers to your open homes. The more people through the door and the greater the buzz, the more likely you are to get an offer and a higher price. SAVE YOU MONEY Yes, a home staged right could help save you money on expensive renovations like removing walls, painting rooms or installing new carpet. A staged home, using artwork and floor coverings can freshen up a tired space, and by putting in the right scale furniture you can maximize space and demarcate specific areas. Your Real Estate agent will help to guide you. If you do decide to hire a home stager, make sure that you shop around and get quotes, as there are plenty of companies providing this service and they all have different options available. It is also important to check out their portfolio of work beforehand, as every home stager has a different style and different furniture available for hire. A partial stage could cost as little as $1,000, but the average tends to be around $3,000 to $4,000.
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Find out more about these properties www.mikepero.com
Ian Bateman Phone 027 599 9077 ian.bateman@mikepero.com
Mike Pero Real Estate Ltd Licensed REAA (2008) Statement relating to passing over of information mikepero.com/receivinginformation