The Property Chronicle

When you know iswhere heart

is When you know.youknow. DRURY September2022

the

home

REINZ MonthlyHousePriceIndex&Data(link)

MeetyourSalesperson–AndrewFisher

TheInsider–LoanMarketUpdate(withlinks)

DRURY 12

PagePage 16

REINZ MonthlyPropertyReport(link)

CONTENTS

LJHHomeSmartNewsLetter

DruryListings

DruryFeatureProperty

Page 3 Page 5 Page 8 Page 10 Page 17 Page 18 Page 22 Page 24

LetterfromBrentWorthington

REINZ-TonyAlexanderSurvey&Extra

RentExchange PropertyManagementNewsletter

ChangingpropertymarketseesfirsthomebuyersreturnNationalmedianpropertyprices continuetocomedownsincetheirpeakinNovember2021,andJulywasthefirstmonthsince 2011thatwesawtheannualmedianpricedecreasenationally.

Hi,

“Whilesaid.themarkethasbeendominatedbyowneroccupiers,reportssuggestfirsthome buyers(andinsomeareasinvestorstoo)arebeginningtore-emerge—increasingthe buyerpoolagain.”

SincethepropertypricepeaklastNovember,theHPIhasfallenabouteightpercent.To putthisincontext,thenationalHPIsuggestshousepricesarebacktolevelslastseenin May

However,2021.

DRURY

September2022

TheREINZHousePriceIndex(HPI),whichmeasurethechangingvalueofresidential propertyacrossNewZealand,alsorecordedanannualfallof2.9percentinJuly,which isthefirsttimetheHPIhasexperiencedanannualfallin11years.

propertiesarestillcomingtomarket,andthosethatarepricedtothecurrent marketareselling,accordingtoREINZCEOJenBaird.

“Agentsacrosstheregionsreportvendorsareadaptingtheirsalesstrategytohitthe rightchordinthemarketrightnow.Whilethesalesprocessistakinglonger,withthe rightmarketingandlocalknowledge,thereareseriousbuyersreadytomakeanoffer,” Baird

InarecentsurveyofrealestateagentsbyeconomistTonyAlexander,82percentof agentssaidthatbuyerswereconcernedabouthigherinterestcontinuedrates.over...

BrentWorthingtonPrincipalLJHookerDrury&RentExchangePropertyManagementT092947500M0292965362

ThisisaccordingtothelatestfiguresfromtheRealEstateInstituteofNewZealand (REINZ),whichshowedthemedianpricesforresidentialpropertydecreased1.8percent annually,from$825,000inJuly2021to$810,000inJuly2022.

"Wheretheonlyresultthatmattersisyours"

DRURY September2022

ExchangePropertyManagement

Asalways,wetrustyouenjoythismonth'spublication.

continued...WhilepeoplearefixatedonthemediaattentionoftheReserveBankraisingitscash rateandpeopleseeingtheirmortgageratesjumpastheirfixedratechanges, Alexandersaidthepeoplethisimpactsalreadyownsahouseandthemajorityare unlikelytobebuyersanytimesoon.

Ifthistrendcontinues,Alexandersaidthoughtsonlowermortgagerateswilllikelybe alotstrongercomemid-Octoberthantheyarenow.

Brent

“Whyaretheseratesfalling?”Alexanderasked.“Becausethecosttobanksof borrowingmoneytolendfixedisfalling.

“Whyarethosewholesaleratesfalling(sofardown0.7percentorsofromJune peaks)?Becausetheworld’smarketsarelookingthroughthecentralbankincreases intheir24hourinterestratestoreductionstocomenextyearinresponsetoslowing worldgrowthifnotrecession,andpotentiallyrapidlyfallinginflationnextyear.”

LJPrincipalWorthingtonHookerDrury&Rent

Alexanderpointsoutthatforcurrentbuyers,fixedmortgagerateshavealready startedtodecrease,rangingfrom0.2percentto0.4percentsincethepeakinJune.

T 092947500 M0292965362

1. Spring clean

2. Increase curb appeal

Consider repainting fences, exterior walls, and the letter box. For a pop of colour, add flowers and green shrubbery to your front garden. Don’t forget to fertilise your lawn and garden beds for vibrant springtime growth. Make an impact by introducing statement pots and plants to your entrance. Remember to keep up with watering to keep your lawn, flowers and trees looking their best.

Start with a complete spring clean to get your house ready for the sale. Clean glass doors and windows from the outside and inside. Remove cobwebs and give everything a good dusting and vacuum. Wash curtains and dust blinds, lighting, and other fixtures. Clean and polish doorknobs, mirrors, switches, taps, and fittings.

Have your carpets professionally steam cleaned. Wipe down cupboards and all exterior and interior surfaces like closet doors as well as shelves and drawers. Pay particular attention to kitchens and bathrooms, and have your tiles and grouting cleaned by experts if necessary.

Why spring is an ideal time to sell

Trim your lawn edges for a clean and orderly look. Fix dead, bald, or yellowing lawn patches by seeding and fertilising these spots. Adding small improvements like mulch can make a big difference while reducing the need for ongoing weeding. Get rid of any shabby-looking outdoor items like rusting deck chairs and creaking swing sets.

Strategies for readying your home to sell in spring

In this guide we explain why spring is a great time to put your property on the market, and we explore specific strategies for getting your house ready.

Property sellers in New Zealand often hold off until spring to list their property. One of the reasons is the sunnier weather and blossoming gardens; making properties look more appealing and motivate buyers to get out and about after the cold, rainy months. Unsurprisingly, buyers tend to be more inclined to attend open houses when the weather is sunny and mild, rather than overcast and rainy.

September2022

Spring is an excellent time to sell your property for a variety of reasons. As the seller, you’ll want to prepare your home in the right way, as this gives you the best chance of attracting great buyers, achieving a higher sales price, and, ultimately, locking in a successful sale.

Spring’s longer daylight hours, along with people wanting to move in before the Christmas holiday period (and new school year) are also driving factors. Hence the market tends to see an uplift in spring. In turn, sellers recognise more buyers lead to increased competition, higher prices, and possibly a quicker sale for their property.

First impressions count when it comes to buyers’ opinions, so make your exteriors stand out. Tidy up your front and back garden by clearing away any clutter from your front yard. Use a pressure washer to hose down driveways and garden pathways and make sure you remove any oil stains. Rake away dead leaves, prune dead winter growth, and do a thorough weeding. Have your roof and gutters cleaned by professionals. Remove any large bushes and trim away tree branches to clear the exterior view for prospective buyers.

Guidetopreparingyourhomeforthespringsellingseason

Even though sales outcomes tend to be stronger in spring, more sellers and a larger number of properties mean more competition for your property. This means you’ll still need to have a focused strategy to boost your chances of a great sale outcome. Ideally this strategy will include property staging and presentation. Follow these tips to maximise your property’s appeal to buyers.

photos,souvenirs,andaccolades. Considerputtingoversized,worn-looking,or clashingfurniturepiecesintostorage.Anythingyou leave,likeclothinghanginginyourclosetandplates incupboards,shouldbeingoodconditionandtidily arranged.

Youcanaddbasictouchesyourself,suchas updatingoldtowels,rugs,andlinenwithnewones. Drawbacktheblindstoletinnaturallightandadd freshbouquetsofflowers.Duringinspections,the agentmightrecommendaddedelementslike

Getthevalueofourexperiencetoday bybookingafreepropertyappraisal withyourlocalrealestateexpert.

Springisabusytimeforbothbuyersandsellers, andyouragentcanhelpmakeyourpropertystand outandsuccessfullymarketittoyourtarget demographic.Inaddition,youcouldhavethefull confidencethatit’strulytherighttimetosellifyou havethehelpofarealestateexpertwhoknows yourlocalmarket,likeHarveys’highlyexperienced agents.

Decluttering,cleaning,anddepersonalisationare essentialstrategiestoapply,alongwithworking withanexperiencedrealestateagent.

Achievingasuccessfulsaleinspring

6.Workwithanexpert

5.Doanynecessaryrepairsandmaintenance

Arealestateagentworkscloselywithyouatevery stepofyoursale,ensuringyou’restagingand preparingyourpropertycorrectly.Theycancheck you’reworkingoffanaccuratevalueforyourhome andassistwithyourcontractsandpaperwork.

Taketheopportunitytodeclutteryourhouseby throwingawayordonatinganythingyou’renot using.Removeasmanypersonaleffectsfromyour propertyaspossible.Declutteringmakesyour interiorsandstoragespaceslookmorespacious, anddepersonalisingyourhomeprovidespotential buyerswithablankcanvastoimaginethehouse as Removetheirs.family

Takeanobjectivelookatyourinteriorsandnote anyflaws,defects,ordamage.Repairleakytaps, loosedoorknobs,andfaultylightswitches.Give damagedwallsafreshcoatofpaintandconsider havingcarpetstainsremovedbyprofessionals.If youhavetimberflooring,thinkabouthavingthem restrained.

Springisapreferredtimetosellandbuy,andasa seller,youcouldenhanceyourchancesofgettinga greatpriceandachievingafastersaleby preparingyourpropertyintherightway.

relaxingmusicandpleasingaromaswithbaking cookiesandfreshlybrewedcoffee.

So,whatexactlydoesstaginginvolve?Youcould rentfurniture,artwork,andadditionalaccessoriesto accentuateyourproperty’stopfeatures.Thesecan beusedtorepurposerooms-suchasturningan extrabedroomintoanurseryorahomeofficedependingonyourtargetdemographic.

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3.Removepersonalitems

Stagingyourpropertyallowsyoutotargetspecific demographicsandpossiblyachieveabetterprice. Anexperiencedrealestateagentisyourbest adviserwhenitcomestostaging.He/shecan pinpointthespecialfeaturesandguideyouonhow tohighlightthesewithstaging.

4.Accessorisetheinterior

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OurListings

ForSale $2,850,000 View By Appointment

Nav Johnson 027 827 2213 nav.johnson@ljhooker.co.nz

DRURY

Auction Wednesday September 21st, 06:00PM

15th, Sep 2022

1/233 Great South Road Drury NZ 2113 drury@ljhooker.co.nz

ForSale By Negotiation View By Appointment

LJHooker 09 294 7500 https://drury.ljhooker.co.nz/ 91 Beatty Road, Pukekohe NZ §8 b7 �uNuM1TEDPOTENTIAL WITH DEVELOPMENT LAND 2379m2 On the market for the first time in 43 years. The 630m2 (more or less) dwelling is set on a 2,379m2 ... 10 Regis Park Drive, Pukekohe NZ §5 bl �2

ForSale By Negotiation View By Appointment

re... 1 Luke

developers

Karaka NZ §4 b2 �4 SOUGHT AFTER HARBOURSIDE Sited for all day sun,the indoor/outdoor flow from the open plan kitchen/family room to the outdoor... 41 Tribute Loop, Takanini NZ §3 b2 �1 TREASURE ON TRIBUTE TBA

for families

Andrew Fisher 027 542 5500 andrew.fisher@ljhooker.co.nz

Auction Wednesday October 5th, 06:00PM

NZ §S b2 �2 URGENT SALE-MAKE AN OFFER * Prominent site * Prime Location * Huge development potential 14 Toscana

Zoned

Lina Roban 021 022 88521 lina.rob@ljhooker.co.nz

For Auction

Andrew Fisher 027 542 5500 andrew.fisher@ljhooker.co.nz

View Sunday September 18th, 02:30PM 03:lSPM, Sunday September 25th, 02:30PM 03:lSPM

the ... 30

NZ §3 bl �1

URGENT SALE-MAKE AN OFFER tenanted, this 985m2 site (more or less) is a dream. Residential (9D), Place, Otara Drive,

Currently

ForSale Price By Negotiation View By Appointment

View Sunday September 18th, 01:lSPM 02:00PM

This

For Auction

Nav Johnson 027 827 2213 nav.johnson@ljhooker.co.nz

Spacious Gem in Pukekohe immaculate and spacious home is perfect of all ages. Spread over two levels, Franklyne Road, Otara

Brick& Tile Beauty In The Park. If it's the easy care of a brick and tile home you're after, then this one's for you. Situat...

Auction Wednesday October 12th, 06:00PM

Sep

16 Stellata Court, Randwick Park NZ §3 b2 �2

View Sunday September 18th, 03:45PM 04:30PM, Sunday September 25th, Nav Johnson 027 827 2213 nav.johnson@ljhooker.co.nz

OurListings

DRURY

15th, 2022

ForAuction

1/233 Great South Road Drury NZ 2113 drury@ljhooker.co.nz

LJHooker 09 294 7500 https://drury.ljhooker.co.nz/

error,omission, nav.johnson@ljhooker.co.nzdrury@ljhooker.co.nz HarboursideBeauty LocatedinthehighlydesirableKarakaHarboursideEstatewith easyaccesstothemotorway.Hingaiaprimaryschooloffers conveniencetoparentswithyoungchildrenandtheprestigious campusofAcademicCollegesGroupStrathallanislocatedawalk WednesdayAuction:away.5thOctoberat6:00pmInRooms1/233GreatSouth Road,Drury(unlesssoldprior) 14ToscanaDrive Karaka • Sitedforalldaysun • GorgeousEntry • OpenPlanLiving • Separatelounge • 4Bedrooms(3double,1Single) • Familyandensuitebathrooms • SeparateLaundry • DoubleGaragewithInternalAcces FeatureProperty

Book an appraisal for a chance to win a $5,000 renovation voucher DRURY Scantobookyourappraisal name@ljhooker.com TNBPropertyServicesLtdLicensedREA2008 InformationClickLink-SpringIntoActionAppraisal-&termsandconditions

OnthefollowingpagesyouwillfindourlatestPropertyManagement Newsletter.

Property Management

Email: Phone:debbie.harrison@ljhooker.co.nz021303864

Pleasedon ’thesitatetocontactDebbieHarrisonwhocanablyassistyouwith anyPropertyManagementissuesyoumayhaveorifyouhaveanyquestions aboutanythingintheNewsletterorpropertymanagementingeneral.

Thegovernmentagencysaysinthetimeittakestofill thekettlewithwater,asmallchildcangethurtor eventstrangledinacordfromablindorrollershade ifit’snotsecurelytidiedawayoutofreach.

“Youcangettensiondevices(alsoknownas"cord tensioners"or“cordcleats”)fromhardwareor windowfurnishingstores.Thisisaminorchangethat canbepurchasedforasmallcostandmakesa greatdifferencetowardssaferhomesforchildren,” TenancyServices’websitesays.

theCoronersaidparentaleducationis needed,andthirdly,thatremediationactivityshould actuallyoccur."

CoronerMary-AnneBorrowdalewarnedaboutthe dangersoftheseloosecordsafterherinvestigationof theatrociousdeathofatoddlerwhowasstrangled bytheinnercordsofaromanblindin2018.

(Thecontentsofthispiecemaybedistressingto somereaders.)

"Wehaveacommission,someindependent economicresearchwhichhasgivenusmore information,somefacts,dataandstatisticsaboutthe issue,”GallaghertoldNewsHub.

MorethanayearlaterafterBorrowdale’sreport,which calledforactiontopreventmore“avoidabledeaths” wasrelease,littlehadbeendone.

FollowingthisannouncementfromGallagherwas whenTenancyServices(anMBIEdepartment) releasedadviceabouthowtokeepchildrensafe aroundblindsandwindowshadeswithcords.

TenancyServicesraisesawarenessofthedangersofloosecords

MBIEhasstartedworkingwithPlunketandSafeKids toprovideclearermessagingtoparentsand caregivers.IthasalsoworkedwithTheWarehouse andBunningstosourcecleatsthatwillbeavailable instoreinSeptember.

TenancyServicesrecommendslandlordsand propertymanagerstostartbyidentifyinganyblinds orcurtainswithlongorloopedcordsthatarewithin achild’sreach,ornearfurnituretheycanclimbon.

InMarch2021whenthecoronerreleasedherreport, shesaidtherehadbeensomeeffortstoeducatethe public,“butthoseefforts,whilelaudable,arealonenot sufficienttoprotectNewZealanders.”

Itisthenadvisedtheseblindsarereplacedor removed,useatensiondevicetokeepcordssafe,or retrofitcordstomakethemsaferandoutofreach fromchildren.

"AndtheCoroner'sreportactuallyhadthreemain recommendations.Thefirstwasregulation,whichwe areactivelylookinginto,andwearepreparingto brieftheMinisterimminentlyonthebestoptions

Since2009,thecoronerfoundtherehadbeenfive otherchildrenwhohaddiedafterbeingentangledin romanblindcordsandonewhowastangledina rollerblindcord.

TenancyServiceshaspartneredwithConsumerProtectiontoraisetheawarenessofthe deadlypossibilitieswhenyoungchildrengettangledinloosecords.

"Secondly,there.

ljhooker.co.nz

InearlyJulytheMinistryofBusiness,Innovationand Employment(MBIE)deniedithadstalledonmaking decisionsonthismatter,anditsnationalmanagerof consumerservicesSimonGallaghersaidtheagency isworkingonseveralmeasurestoaddressthisissue.

Ifarentalpropertyisnotbeingproperlylookedafter, atenantmaybecometiredoftheissuesandlook foralternativeaccommodation.Iftherenterhas beenontheballandalertedthelandlordofissues tonoavail,orevenifnumerousissuesarisewiththe infrastructureoftherental,atenantmaytireofthe constanthassleandwanttomoveout.

5.Changingcircumstances

4.Renter’smarket

Keywaystoensureyourtenantswantto stayinyourproperty

However,someonewhoneedstorelocatefortheir jobneedstomovesimplytobeclosertotheirnew job,forcingthemtomoveoutoftheirrental.

ljhooker.co.nz

Top5reasonstenantsmove

1.Incentivisetenantstorenewtheirlease

Manyrentersrelocatewhenthemarketisdeemed tobearenter’smarket.Thisisagoodtimefor renterstosearchfornewapartmentsorhouses,as arenter’smarketsuggeststhattherearemore placesavailablethanthereisdemand.Therefore,a tenantmaymoveiftheyfindalargerpropertyor onewithbetteramenitiesforalowerpricethantheir currentresidence.

Findingnewtenantscanbeatime-consumingandcostlyexerciseforlandlordsand propertymanagers.Thatiswhyitisimportanttounderstandnotonlythereasonswhy tenantsmove,butthesmallthingsthatlandlordscandoinanefforttomakerenewinga rentalleaseanobrainer.

Arenteroftenmovesoutwhentheyarenolonger abletocovertheexpenseofrent.Beitthroughjob lossorasuddenincreaseinexpensesdueto medicalissuesforexample,therentermay suddenlyexperiencepoorcashflow.Throughno faultofthelandlord,therenterhastomoveoutin ordertofindhousingthatismoreaffordable.

2.Jobchangeorrelocation

Whenarenterchangesjobsorisrelocatedintheir currentposition,theyalsomaybeforcedtomove outoftheirhome.Intheinstanceofchangingjobs, rentersmaybelookingtodownsizeorupsizein accordancewiththeirnewpaypacket.

3.Maintenanceissues

Keepingqualitytenantsshouldbeapriority, particularlyifyourcurrenttenantslookafteryour propertywell,payrentontimeandarenot unrealisticallydemanding.Inthiscase,perhaps youcouldagreetonotincreaserentifaleaseis renewed.Thiscouldbeespeciallyvaluabletoyour tenantsifrentshavebeengoingupelsewhere aroundthesuburb.Ifyouraiseyourrentaswell, thenthey’regoingtostartlookingatwhatelseis availableand,iftheyleave,itprobablywasn’t worthit.

Howtoencouragetenantstorenewtheirlease

Intheeventofmarriage,divorceorseparation, tenantsmayneedtomove.Thischangeinlife circumstancesmaynecessitateapropertyofa differentsizeorjustanopportunitytostartfresh. Withthesechangesinpersonallifecomesaneed torelocateinordertosuitarenter’snewnormal.

1.Cannotaffordtherent

2.Createatrustingrelationship

Havingagraceperiodaccommodatesfortimes whenlifecircumstancesgetinthewayand paymentneedstobedelayedafewdays,rather thanbeingdelayedforweeksonend.Allowingfor someleewaysendsthemessagetotenantsthat asalandlord,youaren’tstrict,justreasonablein yourexpectations.

Itiseasiertogetsomebodytocooperateiftheylike you,trustyou,andarehappytodealwithyou.With atypicalrentalleaseyouhaveayeartocreatea relationshipwithyourtenants.Thiscanbedone easily;makesureyouhandlerepairsand complaintsquicklyandcompetently,returncalls andmessagespromptlyand,ingeneral,benice andfriendly.Byquicklyresolvingproblemsthatare withinyourcontrolgoesalongwaytokeepingthem happyandensuringthemthatanyissuesthatneed ‘expert’attentionarebeingprioritised.

Iftherentalagreementstatesthatrentisdueon thefirstofthemonth,itiswithintheinterestofboth partiestohaveagraceperiodinplaceuntilat leastthefifthdayofthemonth.Whilelandlords canmakethetimeframelenient,theyshouldlet rentersknowthatpaymentafterthegraceperiod won’tbetolerated.

Forexample,ifyourinvestmentpropertyisahouse, plantflowersanddecorativeshrubsinthefront yard.Ifyourinvestmentisinanapartment,make suretheentrancewaytotheapartmentisclean andtidy.

Ifyourpropertyisahouse,professionallandscaping andgardeningmaintenancearetwoofthebest, mostcosteffectivewaystoincreasethevalueof theproperty,frombothfinancialandaesthetic viewpoints.

Makesureyouhavearegularproperty maintenancescheduletohelpprevent‘issues’from arising.Ensureyouscheduleinregularcheckssuch astestingsmokealarms,replacingbatterieswhere needed,lookforleaksintheroof,aroundthewater heater,toiletsandsinks.

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5.Addresscomplaintsquickly

3.Makeyourtenantsproudoftheproperty

Everyonelikestocomehometoawell-maintained property,andtenantsarenodifferent.Spending timemakingsureyourpropertyhasgoodcurb appealwillgoalongwaytomakingtenantsproud tolivethere.

Workingwithyourpropertymanagertoensurea tradespersonregularlyvisitsyourpropertyisalsoa goodideaandwillhelpcreatetrustbetweenyou andyourtenants.

Aimingtoresolvecomplaintswithinaweek’stime isagoodbenchmarktoset.Foralandlordit leavesenoughtimetosortthroughtheproblem andforatenanttheshortturnaroundshowsthat thelandlordtakestheirwordsseriously.

4.Offeragraceperiodwhencollectingrent

Ifalandlordearnsareputationofbeingquickto respondbothefficientlyandeffectively,whenit comestimetosignanewlease,renterswillhave totakeintoaccounthowwelltheyhavebeen treatedandconsiderif,shouldtheyleave,would anotherlandlordbesoaccommodating.

INDEXHOUSEMONTHLYPRICEREPORT. © REINZ - Real Estate Institute of New Zealand Inc. 13 SEPTEMBER 2022 Click here to view report

REINZ

& TONY ALEXANDER REAL ESTATE SURVEY September 2022 Clickheretoviewreport

THE ENDGAME BEGINS

One of those things, is vendors becoming more willing to accept the reality that they will not get the price of late last year. My gauge for this comes not just from anecdotes, but the ASB Housing Intentions Survey. It recently showed a net 31% of people expect house prices to fall, the weakest result since 2009.

BY TONY ALEXANDER

Top ranked is rising interest rates, cited by 70% of agents. This is down from a peak of 83% in May and 82% in July with the fall possibly coming about because fixed mortgage rates have in fact been cut between 0.2% and 0.4% since June.

I do not expect many further cuts in the next nine months but do anticipate further backing off of rate fears even as the Reserve Bank lifts the cash rate from the current 3% to probably 4%. Those rate rises directly drive bank floating mortgage rates, but bank fixed rates reflect expectations of the cash rate in the future and not where it is now.

Those expectations are for the Reserve Bank to be cutting the cash rate probably before the end of 2023. But don’t get too caught up on trying to forecast what interest rates are going to do. There are simply too many strong factors in play about which we can only make guesses to have any degree of certainty.

The second highest concern cited by agents in my monthly survey is access to finance, noted by 67%. This is down from 78% in July and a peak of 89% in January. Finance is much harder to get than a year ago. But banks are becoming more willing to lend and in my recent survey of mortgage advisers a net 25% said exactly that — that banks are becoming more willing to advance funds. The credit crunch is easing.

Another factor suggesting that we are into the final months of the weakening market is growing discussions about an oversupply of property in Auckland and brain drain to Australia. Over a year ago, I noted that at some point we would choose to wallow in the dystopia of these two things and that would make vendors more willing to meet the market.

1

Another indication perhaps is the strong jump in the net proportion of agents saying that they are receiving more requests for property appraisals — 20% from 13% receiving fewer last month. This is not a seasonal jump because it did not happen in 2020 and 2021. Instead, it suggests people holding back for an improved market are no longer prepared to wait and want to get on with their lives.

Lest anyone think I may be writing otherwise, let me make one point clear at the start of this article. The negative factors still dominate in New Zealand’s residential real estate market, and we should expect to see some further weakening of sales and prices as we head into the start of 2023. However, various things are happening which suggest we have entered the endgame for this downward phase of the house price cycle.

This does not actually tell us that house prices are about to plunge because the survey changes after actual house price changes, not before. But it does tell us that people have overwhelmingly accepted that things have changed and hold almost no expectation of better prices in the near future if one holds off selling.

There is also the important information delivered by agents responding in my survey with regard to the things which buyers are most concerned about.

None of the measures I create from my five monthly surveys and none of the other factors I have noted above tell me that the residential real estate market in New Zealand has stopped weakening. Further downside beckons. But the speed of decline is set to ease soon and my expectation for 2023 is of rising sales and rising prices (not by much) with support from a range of things.

When we put these things together, it is not surprising that we are seeing measures of buyer activity turn around.

Those 2023 factors include rising construction costs, strong job security continuing, easing cost of living increases, the return of migrants and granting of permanent residency to up to 200,000 currently on working visas (family members included), and a possible easing of the Reserve Bank’s LVR restrictions once prices fall another 4 to 5%.

In my survey of agents, a net 34% say that they are still seeing fewer investors. The investors are definitely in the shadows. But this 34% is the least weak result since September last year and well back from 65% in May. Investors are negative but becoming less so.

More interesting is the net 5% of agents who now report that they are seeing more first home buyers, and the net 7% saying that they are seeing more people attending open homes. Young people are stepping forward to take advantage of the 107% rise in the stock of properties for sale from a year ago, with many responding to the recent lifting of Kainga Ora price caps.

The third main concern agents note is worries that prices will fall after buying. I describe this as FOOP, fear of overpaying. This is cited by 66% of agents, down from 69% in July and a peak of 73% in May. The decline is small and that is understandable considering the ASB survey result. But a decline in these worries is underway.

2

Disclaimer: This report is intended for general information purposes only. This report and the information contained herein is under no circumstances intended to be used or considered as legal, financial or investment advice. The material in this report is obtained from various sources (including third parties) and REINZ does not warrant the accuracy, reliability or completeness of the information provided in this report and does not accept liability for any omissions, inaccuracies or losses incurred, either directly or indirectly, by any person arising from or in connection with the supply, use or misuse of the whole or any part of this report. Any and all third party data or analysis in this report does not necessarily represent the views of REINZ. When referring to this report or any information contained herein, you must cite REINZ as the source of the information. REINZ reserves the right to request that you immediately withdraw from publication any document that fails to cite REINZ as the source.

To subscribe to my free weekly “Tony’s View” for easy to understand discussion of wider developments in the NZ economy, plus much more on housing markets, go to www.tonyalexander.nz

Clickheretoview

Book an appraisal for a chance to win a $5,000 renovation voucher DRURY Scantobookyourappraisal drury@ljhooker.com TNBPropertyServicesLtdLicensedREA2008 InformationClickLink-SpringIntoActionAppraisal-&termsandconditions

He worked in the education industry for many years, first as a teacher and then as the Principal/General Manager of two leading English language schools. This work experience has prepared him well for his role in real estate, as he is very used to relating to people from all over the world as well as homestay families and other stakeholders throughout the community.

MEET YOUR SALESPERSON - ANDREW FISHER

Andrew is a real estate consultant committed to achieving the best outcomes for his clients, whether they are buyers or sellers. He grew up in South Auckland and has recently returned to the area after many successful years in central Auckland and overseas. Andrew has devoted his professional life to providing great customer satisfaction through a passionate commitment to quality, empathy and excellent communication.

Andrew also has valuable experience in sales and marketing through promoting his schools in New Zealand and around the world and has proven himself an able negotiator, proud of the positive outcomes he was able to achieve when negotiating with suppliers and others to get the best deals for his schools.

He is also able to call on the knowledge and professional experience of his wife, Eva, who is a qualified landscape architect and urban planner and practicing urban designer. For insights into the development potential of properties and the increase in value that can be gained from pursuing development opportunities, Andrew and Eva make a winning team. Andrew looks forward to hearing from you and working with you to get a great result from your next move in real estate.

His natural ability to quickly build rapport, combined with his determination, analytical ability and negotiation skills are strong positive attributes Andrew brings to his current role in real estate. He understands that the process of buying and selling property can be challenging, and sometimes stressful, for all parties. Andrew knows how important it is to be a great listener and a calm source of knowledge and support for the people he is representing.

Get your opportunitiesgoldennow supergold.govt.nz SuperGold welcome here 0011 MSD SuperGold Counter Card A4_2_LB_FA.indd 1 13/09/19 10:58 AM

drury@ljhooker.co.nzLJHookerDruryTNBPropertyServicesLimitedLicensed(REAA2008)1/233GreatSouthRoad,DruryAuckland2113https://drury.ljhooker.co.nz

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TNB Property Services Limited Licensed (REAA 2008) 1/233 Great South Road, Drury Auckland 2113 https://drury.ljhooker.co.nz/

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