Property Talk WINTER ISSUE June 2018
What’s Happening in the Wairarapa / Wellington Market? The trend in the median price is starting to show a slightly slower rate of increase, although the volume trend has flattened but is still decreasing. The days to sell trend remains flat to easing. The House Price Index has had a slight growth over the past three months.
O
ur seasonally adjusted results tell us that, compared to what we expect when moving from April to May, the observed increase in median price was fractionally greater than expected and the observed increase in sales count was smaller than expected. The current Days to Sell of 29 days is less than the 10-year average for May which is 38 days. The level of inventory available for sale currently sits at eight weeks, one week more than in May 2017. Compared to May 2017: • Median Price up 8.0% • Sales Count down 5.5% • Days to Sell decreased 2 days Compared to April 2018: • Median Price up 1.3% • Seasonally adjusted median price up 0.6% • Sales Count up 3.5% • Seasonally adjusted sales count down 2.5% • Days to Sell decreased 2 days
Mark Coffey, REINZ Regional Director, says “Overall, the Wellington market is continuing as before. Many first home buyers are looking to get into the market and they are now concerned that they are going to miss out while the prices continue to go up. This drives first home buyers to move further into the suburbs as they cannot afford to buy in town. Historically, they would not have looked at the options in all suburbs. The Upper Hutt listings are the lowest in a very long time. There are good numbers of pre-approvals
but a severe lack of stock. We see multiple offers on properties in the middle-range price bracket. It also appears that bank lending continues to tighten up resulting in fewer overall buyers in the market. There is no sign of the stock shortage easing any time soon, which means that the market will most likely stay the same for the next couple of months.”
Median Sale Price for May 2018
$567,000
WELLINGTON REGION Wellington Central Masterton
$225,000 $330,000 $530,000
Lower Hutt City
$675,000
Greytown Featherston Carterton
$330,000 $375,000
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 May 2018
MAY 2017-2018
“$27k price increase sees New Zealand hit new record median price in May”, says REINZ.
NATIONAL MEDIAN PRICE up 5.0% to
“The record price for New Zealand of $562,000 continues to highlight the buoyancy of the housing market across the country. Of the 16 regions in New Zealand 13 saw an annual price increase - 5 of which were double-digit increases showing that the demand for good property continues unabated. Only three regions saw a yearon-year price decrease - Auckland, Gisborne, and Southland,” says REINZ Chief Executive, Bindi Norwell.
$562,000 MEDIAN DAYS TO SELL
38
Median house prices for May 2018 were recorded as follows:
Record Median Sales Increased Stable Decreased
REINZ House Price Index The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.7% year-on-year to 2,702. The HPI for New Zealand excluding Auckland increased 6.8% from May 2017 to a new record high of 2,554. The REINZ HPI showed that 11 out of 12 regions experienced an increase in their HPI over the past 12 months, highlighting the continued strength of the property market. Again, the only region not to experience an increase was Canterbury, which experienced a decrease of 0.9% year-on-year –nothing for the region to be concerned about.
Northland
$475,000
Auckland
$852,000
Waikato
$510,000
Bay of Plenty
$589,700
Gisborne
$280,000
Hawke’s Bay
$430,000
Manawatu/Wanganui
$305,000
Taranaki
$352,500
Wellington
$567,000
Nelson Marlborough
$511,000 $425,000
Tasman
$612,000
West Coast
$220,000
Canterbury
$442,000
Otago
$440,000
Southland
$240,000
NZ excluding Auckland
$455,000
NEW ZEALAND
$562,000
The REINZ House Price Index shows: New Zealand
+3.7% on May 2017
NZ ex Auckland
+6.8% on May 2017
Auckland
+0.6% on May 2017
The median number of days to sell a property nationally increased by 1 day from 37 days in May 2017 to 38 days in May 2018. This is 2 days more to sell a property than it took in April this year.
New Zealand
-0.1% on April 2018
NZ ex Auckland
+0.4% on April 2018
Auckland saw the median number of days to sell a property remain flat at 40 days but it increased by 3 days on April 2018.
Auckland
-0.6% on April 2018
The Manawatu/Wanganui region had the highest annual growth rate at +14.3%, followed by Gisborne/Hawke’s Bay in second place (+14.0%) and Southland in third place (+12.2%) highlighting the strength of these regions.
Days to Sell
Regions with the biggest decrease in the median number of days to sell were West Coast (-50 from 148 to 98), Taranaki (-5 days from 42 to 37) and Nelson (-3 from 35 to 32). Regions with the biggest increase in the median number of days to sell were Gisborne (+12 from 32 to 44), Tasman (+8 from 29 to 37), Bay of Plenty (+7 from 38 to 45) and Northland (+6 from 41 to 47).
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For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi
Source: REINZ
Make sure you get prepared for the cooler months ahead by getting on to these house tasks early. CHECK YOUR SMOKE ALARMS
STORE YOUR OUTDOOR FURNITURE
FERTILISE AND FEED YOUR LAWN
The start of a new season is always a good time to check that your smoke alarms are in working order. A smoke alarm can quite literally be a lifesaver by giving you an early warning to fire. A good way to check your alarm is in working order is by simply clicking the test button - if a loud series of beeping or a long beep occurs, then you are good to go. If your smoke alarm doesn’t respond when clicking the test button, then you will need to replace the batteries. It is important to note that your smoke alarm batteries should be replaced once a year. For more information on smoke alarm maintenance, please visit fire.org.nz.
Your deck chairs, loungers and outdoor dining furniture will get next to no use over the next six months and, therefore, you should look to clean them down and store them away to ensure they remain in good condition. The chilly winter elements have a tendency to damage outdoor furniture by causing cracks, rusting and splitting (depending on the material of your furniture) and the damp, wet weather can also cause mould and mildew to grow on any outdoor cushions. Before storing your furniture, give them a good scrub down. If you have any cushions on your furniture, use soapy water to give them a clean before storing away.
Winter may not be the season that instantly comes to mind when it comes to lawn maintenance and while your grass may not be growing, its roots are still active. Now that the temperatures have dropped you can apply fertiliser after your final mow of the season. By fertilising your grass at the beginning of winter, not only will you promote deep and healthy root growth before the grass goes completely dormant, but you will also help your lawn turn green faster in the spring and also make your grass more resistant to disease and drought. It is important to use a specific fertiliser for application at this time of year.
Some other important tasks to attend to going into the winter months include servicing your heatpump, having your chimney and flue checked and cleaned, as well as cleaning and repairing any guttering.
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