Property Talk
AUTUMN 2018
with
Wayne & Marina
What’s Happening in the Wellington 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 rose strongly this past month resulting in solid growth over the past three months.
W
ell what an outstanding summer we have just had – it has certainly been the best we can remember, and a good gauge of a summer is how many Saturdays get washed out with our respective children’s cricket - and we have had none this summer! To match the sizzling weather, the market is still currently red hot, with the record low level of properties on the market continuing. Normally in summer the properties on the market are around 1200-1400, but we have been sitting around 600 this season. Prices for well-presented homes are still very much on the upward trend, often surprising our vendors (and ourselves!) with some of the results we continue to achieve! Despite the hot market, we cannot emphasise how important it is to have two highly-skilled and experienced agents working for you to ensure the maximum price is achieved. We will not expose your biggest asset to average
Compared to Feb 2017: • Median Price up 4% • Sales Count up 7% • Days to Sell increased one day Compared to Jan 2018: • Median Price up 9% • Seasonally adjusted median price the same • Sales Count up 87% • Seasonally adjusted sales count up 13% • Days to Sell decreased 9 days
inexperienced agents that can end up costing you tens of thousands through poor negotiation skills and lack of experience. We will not take on any more listings than we can handle at one time so as to ensure the ‘Boutique Experience’ with the backing of over 60 Mike Pero Real Estate offices nationwide. Wondering where our office is? We are still at 22 Kaiwharawhara Road - we have just moved upstairs with access via Cameron Street. Our seasonally adjusted results tell us that, compared to what we expect when moving from January to February, the observed increase in median price was roughly what was expected and the observed increase in sales count was larger than expected. The Current Days-to-Sell of 32 days is less than the 10-year average for February which is 41 days. The level of inventory available for sale currently sits at 7 weeks, two weeks less than in February 2017.
Mark Coffey, REINZ Regional Director, says “The Wellington market has been tracking along at a similar pace to previous months, with strong buyer activity in general. However, we are seeing a slight increase in listing numbers compared to the previous month, which is a positive sign. All clients seem to have lending arranged and are working quickly to ensure they don’t miss out. There is a significant demand from first home buyers at the lower end of the market. There might be an increase in the number of investors going forward as there is still a huge demand for rentals which leads to investors seeing the demand and then jumping on board.” If you are curious to know what your home may be worth, give us a no-obligation call you may be pleasantly surprised - even if it is just for curiosity sake!
arina Wayne & M $546,000
WELLINGTON REGION
$703,000
Wellington City Upper Hutt City
$465,000
South Wairarapa
$460,870 $641,250
Porirua Masterton Lower Hutt City
$350,000 $498,000 $515,000
Kapiti Coast Carterton
$385,000
0800000 000525 525 mikepero.com mikepero.com 0800
Annual Median Price Changes REINZ House Price Index
House prices rise 6.9% across NZ
3.7% 10.5%
10.1%
The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.9% year-on-year to 2,692 – a new record high. The HPI for New Zealand excluding Auckland increased 6.9% from February 2017 to a new high of 2,524 and Auckland’s HPI increased 1.1% for the same period.
4.5%
-3.1%
18.4% 13.3%
1.9%
$444,000
-10.7%
7.4%
UP 6.9% TO $530,000
RECORD MEDIAN PRICES
Increased / Decreased
Days To Sell The median number of days to sell a property nationally increased by 4 days from 40 days in February 2017 to 44 days in February 2018. Auckland saw the median days to sell a property increase by 6 days to 49 (up from 43 in February 2017). This is the highest number of days it’s taken to sell a property in Auckland for 9 years. Regions with the biggest increase were West Coast (+21 days to 105), Marlborough (+12 days to 49), Manawatu/Wanganui (+8 days to 40), Canterbury (+7 days to 50 – the highest number of days it’s taken to sell a property since March 2011) and Otago (+7 days to 42). Three regions saw a decrease in the number of days to sell year-on-year; Gisborne (-11 to 46 days), Hawke’s Bay (-5 days to 29 – the only region with figures still in the 20s) and Southland (-3 days to 36).
Inventory The number of properties available for sale nationally increased by 3.2% (from 26,110 to 26,943) compared to 12 months ago. This figure is buoyed by reasonably large inventory increases in Waikato (+15.0% - an additional 252 properties), Auckland (+10.9% - an additional 943 properties) and Canterbury (+10.7% - an additional 387 properties). A decrease in inventory in 10 regions saw the New Zealand excluding Auckland level of inventory fall by 0.6% from 17,465 in February 2017 to 17,355 in February 2018. Regions with the biggest falls in inventory were: Hawke’s Bay – down 16.4%; Gisborne – down 12.6%; West Coast – down 12.9%; Taranaki – down 12.4%; Southland – down 10.8%. The Hawke’s Bay region only has 7 weeks’ inventory available to those looking to purchase in the area – the lowest level of inventory in 10 months.
Price Bands Between February 2017 and February 2018, the number of homes sold for less than $500,000 across New Zealand fell from 50.2% of the market (3,163 properties) to 46.0% of the market (2,930 properties) which is reflected by the overall increasing median price. However, at the upper end of the market, the percentage of $1 million plus properties sold increased from 11.4% of the market to 13% of the market. “Taking time to analyse the price bands on a regional basis helps to understand why Gisborne was one of the only regions to experience a decrease in median price during February. The number of properties sold in the $500,000 to $750,000 bracket was only 3.8% in 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.
0800 000 525
$530,000 median house price
44
Median days to sell in FEBRUARY
4.2%
NATIONAL MEDIAN PRICE CHANGE YEAR-ON-YEAR : 14.3%
“Median house prices increased in 14 out of 16 regions across New Zealand during February 2018 compared to February 2017, including a record high in the Hawke’s Bay. The only regions not to experience an increase were the West Coast and Gisborne which saw decreases of 10.7% and 3.1% respectively,” says REINZ Chief Executive, Bindi Norwell.
3.5%
15.0%
5.4%
The REINZ HPI showed that 11 out of 12 regions experienced an increase in their HPI and 9 regions saw a new high in February, highlighting the strength of the property market. Regions with the highest growth year-on-year were Gisborne/Hawke’s Bay +16.0%, Southland +12.3%, Northland +10.4% and Manawatu/Wanganui +10.2%.
REINZ Residential Statistics Report for February 2018
8.4%
FEBRUARY 2017-2018
mikepero.com
Median house prices for February 2018 were recorded as follows: Northland Auckland Waikato
$450,000 $858,000 $503,000
Bay of Plenty
$553,000
Gisborne
$310,000
Hawke’s Bay Manawatu/Wanganui Taranaki Wellington Nelson Marlborough Tasman West Coast Canterbury Otago Southland NZ excluding Auckland NEW ZEALAND TOTAL
$444,000 $289,000 $350,000 $546,000 $515,000 $416,500 $530,000 $183,000 $448,000 $400,000 $240,000 $450,000 $530,000
The REINZ House Price Index shows: National
+3.9% on Feb 2017
National ex Auckland
+6.9% on Feb 2017
Auckland
+1.1% on Feb 2017
National
+1.4% on Jan 2018
National ex Auckland
+1.3% on Jan 2018
Auckland
+1.4% on Jan 2018
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
Bijoux Gardening Add colour and living beauty to your abode with these top tips for small spaces. Inner city living has many
nooks and crannies. Adorn your
benefits, and low maintenance
entrance with topiary, standard
gardening is just one of them.
lavender, or an lemon or olive tree
But just because the footprint
to make an elegant statement.
for potential planting is limited, it needn’t narrow the possibilities. Make the most of every available space in and around your apartment or townhouse to inject a splash of greenery that invigorates, calms and delivers delicious morsels.
Bookshelves, sideboards, bedside tables, kitchen countertops and bathroom vanities are all surfaces where you can introduce greenery.
POT TO PLATE
To add interest, or where surfaces
Having fresh food within arm’s reach is convenient and economical, and doesn’t require a lot of space. Herbs, flowers, fruit and vegetables can all be grown
are few and far between, hang trailing varieties like Boston Ivy, Maidenhair Fern, String of Hearts
Urban dwellings often have small
or Lipstick Vine at different heights
decks and balconies that can
and in clusters.
accommodate a diverse range of plants. Choose varieties that offer
VERTICAL
a tantalising mix of visual beauty,
Another practical gardening idea
fragrance and practicality.
for narrow outdoor areas is to opt
DECORATIVE
Planter pockets can be attached to a fence, the side of your house or wall of your balcony. Hang pots on a trellis or steel mesh, or stack wooden planter boxes in a pyramid fashion, which can double as a dividing wall.
for a vertical plant wall. These can be designed by a professional
No matter how humble or small
landscape architect; or, you can call
your dwelling, plants can breathe
on expert advice from your local
life into otherwise neglected
garden centre to create your own.
successfully in pots and planters, provided there are sufficient nutrients added to the soil and enough sun. If you have more outdoor space available, raised planter beds can be used to house a larger potager garden.
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mikepero.com
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