Property Talk AUTUMN 2018
What’s Happening in the Wairarapa / Wellington Regional Market? The trend in the median price is starting to show a slightly slower rate of increase, although the volume trend has flattened. The days to sell trend remains flat to easing. The House Price Index had a small increase this month leading to a moderate level of growth over the past three months.
O
ur seasonally adjusted results tell us that, compared to what we
expect when moving from February to March, the observed increase in median price was slightly greater than expected and the observed increase in sales count was much smaller than expected. The current Days to Sell of 29 days is less than the 10-year average for March which is 32 days. The level of inventory
seven weeks, two weeks less than in March 2017. Mark Coffey, REINZ Regional Director, says “The Wellington region has hit a new record high median house price of $583,000. We are seeing a nice spread of buyers in Wellington, with the number of first home buyers almost on par with owner occupiers. Most purchasers are still locals looking for a new home. March has been busy at the lower to mid-range
available for sale currently sits at Compared to March 2017: • • •
price brackets and with housing stock still extremely low, purchasers are looking to move further out of the CBD as prices in the centre are high. There are more buyers than sellers, which is affecting the overall median price. The level of interest in the market and attendees at open homes is similar to previous months. With the shortage of listings there will probably continue to be more buyers than sellers leading up to the winter months.”
Median Sale Price for March 2018
Median Price up 10% Sales Count down 18% Days to Sell increased 3 days
Compared to February 2018: • • • • •
Median Price up 6% Seasonally adjusted median price up 3% Sales Count up 6% Seasonally adjusted sales count down 14% Days to Sell decreased 4 days
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Annual Median Price Changes
MARCH 2017-2018
REINZ Residential Statistics Report for March 2018
-0.3%
REINZ House Price Index
Days To Sell The median number of days to sell a property 11.1% nationallyincreased 5.2% by 1 day from 33 days in March 2017 to 34 days in March 2018. This is 10 days fewer to sell a property than it took in February this year.
“March sees record house prices for NZ driven by regions, and volumes are down year-on-year”, says REINZ.
-2.2% 5.5%
-7.3% 12.3%
7.1%
“March was a very strong month from a price perspective with record prices achieved for 17.9% New Zealand, New Zealand excluding Auckland, $330,000 Gisborne, the Hawke’s Bay and Wellington. Looking at the whole country, median house 11.7% prices increased in 13 out of 16 regions - the $445,000 only regions not to experience an increase were Northland, Auckland and Taranaki,” says REINZ Chief Executive, Bindi Norwell.
10.0%
3.8%
$583,000
6.3%
median house price
NATIONAL MEDIAN PRICE CHANGE YEAR-ON-YEAR :
UP 1.8% TO $560,000
RECORD MEDIAN PRICES
Increased / Decreased
Auckland saw the median days to sell a property increase by 1 day to 36 (up from 35 in March 2017) but down from 49 days in February 2018. Regions with the biggest decrease in the median number of days to sell were Southland (-5 days, the lowest number of days to sell in 16 months), Gisborne (-3 days) and Taranaki (-3 days). Regions with the biggest increase in the median number of days to sell were Otago (+6 days to 30), Nelson (+5 days to 27), Northland (+3 to 42) and Wellington (+3 to 29).
Inventory The number of properties available for sale nationally increased by a marginal 1.0% (from 26,742 to 27,018) compared to 12 months ago. This figure was buoyed by inventory increases in Nelson (+13.5% - an additional 54 properties), Waikato (+9.0% - an additional 161 properties) and Auckland (+6.0% - an additional 546 properties). A decrease in inventory in 11 regions saw the New Zealand excluding Auckland level of inventory fall by 1.5% from 17,716 in March 2017 to 17,446 in March 2018 highlighting the effect Auckland had on the overall picture. Regions with the biggest falls in inventory were: • Southland – down 15.3% • West Coast – down 13.4% • Wellington – down 9.1% • Taranaki – down 8.7% • Manawatu/Wanganui – down 7.4%. Highlighting the lack of inventory across the country, the Wellington region only has 7 weeks’ inventory available to those looking to purchase in the area and the Hawke’s Bay only has 9 weeks’ inventory.
Price Bands Between March 2017 and March 2018, the number of homes sold for less than $500,000 across New Zealand fell from 44.2% of the market (3,810 properties) to 41.9% of the market (3,255 properties) which is reflected by the overall increasing median price. Interestingly, the exact same number of properties sold for between $2 million and $2.99 million in March 2018 and March 2017 (158 properties sold in this price bracket), and just one fewer property sold for in excess of $3 million (64 sales) when compared to the same time last year (65 sales).February 2018 compared to 11.1% in February 2017. Additionally, the number of properties in the $250,000 to $499,999 bracket increased from 50.8% to 62.3% thereby decreasing the overall median price for the region,” concludes Norwell.
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$560,000
34
Median days to sell in MARCH
0.2%
Regions with the highest growth yearon-year were Gisborne/Hawke’s Bay +14.1%, Manawatu/Wanganui and 7.5% Southland both on +11.4%, and Tasman/Nelson/Marlborough/West Coast up by 10.1%.
The REINZ HPI showed that 10 out of 12 regions experienced an increase in their HPI and all of those 10 regions saw a new high in March, highlighting the strength of the 4.6% property market.
The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 4.2% year-on-year to 2,710 – a new record high. The HPI for New Zealand excluding Auckland increased 7.2% from March 2017 to a new high of 2,546 and Auckland’s HPI increased 1.0% to a new high of 2,909 for the same period.
Median house prices for March 2018 were recorded as follows: Northland Auckland Waikato
$440,000 $880,000 $510,000
Bay of Plenty
$580,000
Gisborne
$330,000
Hawke’s Bay Manawatu/Wanganui Taranaki Wellington Nelson Marlborough Tasman West Coast Canterbury Otago Southland NZ excluding Auckland NEW ZEALAND TOTAL
$445,000 $292,000 $343,000 $583,000 $505,000 $404,000 $570,000 $215,000 $450,000 $405,500 $242,000 $460,000 $560,000
The REINZ House Price Index shows: National
+4.2% on Mar 2017
National ex Auckland
+7.2% on Mar 2017
Auckland
+1.0% on Mar 2017
National
+0.7% on Feb 2018
National ex Auckland
+0.9% on Feb 2018
Auckland
+0.4% on Feb 2018
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
Autumn Annual Upkeep Spring isn’t the only time of year to have a thorough clean-out of your home. Autumn presents the perfect opportunity to have everything ship-shape and prepared for the impending wintery weather.
Woodburners
MAINTAIN YOUR HOME HEATING
Heat Pumps
With the cooler weather on it’s
essential for your heatpump and it
way, it is safe to say that your
will ensure not only efficiency but
woodburner and heat pump
that your home is circulating clean,
will get a little more attention.
fresh air. A professional will clean
Therefore, it is now the best time
dirty air filters, vents and check
of year to call in the professionals
both your indoor and outdoor unit
to inspect and clean your heating
to ensure your heatpump delivers
solutions.
continuous comfort.
While you can clear out ash and charred wood from your woodburner, a chimney sweep will perform a number of tasks that include cleaning the flue, ensuring the vents are clean and in good condition, and that the damper is tightly closed to reduce draughts. These are just a few of the jobs they will undertake, but all will ensure the safety and efficiency of your chimney.
Annual maintenance is also
CLEAN YOUR GUTTERS AND DOWNSPOUTS Clearing out your guttering is a necessary chore associated with the cooler months of the year and it will prevent debris clogging your gutters that can result in water drainage issues around your property. Safety is paramount, so if it is a job you choose to undertake yourself then it pays to be extra careful when using a ladder. Alternatively, it could be a job that you leave up to the experts.
CAULKING THE CRACKS Take a look around your windows and doors to make sure there are not any gaps that could let in cold draughts. If there are, then you will need to apply exterior caulk. This preventative measure will ultimately keep your house warm while also reducing your power bills.
How important is your GV? GV stands for Government Valuation, also known as Registered Valuation or RV. By now, all home owners should have received the GV dated 1 September 2017. A Rateable Valution is only updated every three years for the purpose of your local council and is established using a mass appraisal process. It is often used when buying and selling as an indicative price. This subject is close to my heart as I moved to the Wairarapa after the Christchurch earthquakes. Home owners in Christchurch red zones were offered a payout from the Government based on the 2007 rateable value of their homes. Many found this value to be much lower than the current market value. Prior to the Canterbury earthquakes a low GV for someone not considering selling their home was a good thing as it meant low rates! After the earthquakes, this became a very different story. For more information read the article at: http://www.stuff.co.nz/the-press/news/christchurch-earthquake-2011/ 5480019/offer-to-red-zone-owners-a-disgrace Whether you are considering selling your home or not, I strongly recommend that if you think your GV is low then you need to request it to be reassessed (a charge may apply). If you are unsure about the value of your home and would like a FREE market appraisal done on your property, please contact me, I would love to help.
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