How Challenging are the Conditions?

The year began with an exciting personal change – moving to Ray White Remuera. The move feels particularly significant because Megan offered me my first job in real estate years ago 15 years ago. In fact, my first day in real estate was the day she commenced business as the owner of Ray White Remuera. I am nothing short of delighted to join the highest performing office in Ray White internationally for the last 8 years and work with an outstanding team to provide better outcomes for my clients.

February sales in Remuera were at their lowest volume across all price brackets since the Real Estate Institute started collecting statistics in 1992. There were only 8 recorded sales! Compare this figure to 32 sales in February 2022, 76 sales in February 2021, then jumping 10 years to 57 sales in 2013, and 87 sales in 2003. Tropical cyclones, low stock levels, rising interest rates contributed, as did other factors. The encouraging news is that at the time of writing sales levels have already significantly improved.

Turning to the Luxury Market, which I have somewhat arbitrarily defined as sales upward of $3,000,000, the last quarter shows a far more complex and encouraging story. During the period November 2022 – February 2023 there were 29 sales. While this is lower than 68 sales in the same months 2021-22 and 87 sales in 2020-21, it is closer to 34 sales in 2019-2020 and higher than 18 sales in 2018-19.

Unsurprisingly the average luxury sales price has dropped. For the summer quarter Nov 2022 – February 2023 the average sales price was $4,533,000 (rounded). Compare this to the average of $5,262,000 in 2021-22, $4,800,000 in 2020-2021, $5,699,000 in 2019-2020, $4,559,000 in 2018-2019, $6,856,000 in 2017-2018, and $5,624,000 in 2016-2017. The interesting point here, as the graph shows, is that there is little correlation between sales volumes and average sales price.

Undoubtedly the conditions have changed and new challenges presented. However, the Remuera luxury market continues to remain resilient and shows every sign that those who adapt and embrace present conditions sell and move on with their lives.

If you would like more information on exactly how you would fare if you sold now, or simply more information on the market, please call or email for a confidential chat.

Lisa MacQueen