Property Talk AUTUMN / WINTER May / June 2018
What’s Happening in the Auckland Market? The trend in the median price has flattened over the past year with the volume trend recently flattening from a falling trend. The days to sell trend continues to ease. The House Price Index is remaining fairly steady, remaining effectively the same as 12 months ago.
ur seasonally adjusted results tell us that, compared to what we expect when moving from March to April, the observed decrease in median price was what was expected and the observed decrease in sales count was what was expected. The current Days to Sell of 37 days is slightly more than the 10-year average for April which is 34 days. The level of inventory available for sale currently sits at 21 weeks, two weeks more than in April 2017. Bindi Norwell, REINZ CEO, says “Auckland continues to see strong Compared to April 2017: • Median Price down 1% • Sales Count up 2% • Days to Sell increased two days Compared to March 2018: • Median Price down 3% • Seasonally adjusted median price up 0.4% • Sales Count down 24% • Seasonally adjusted sales count up 0.3% • Days to Sell unchanged
interest from first home buyers, however, price remains an issue. The REINZ HPI and median house price remained stable, but vendors are reticent to list unless they have a genuine need to sell as buyers are slow to make decisions. The Auckland property market is showing signs of becoming more complex with different sales patterns within the region.
seeing a slowdown in auctions and open home attendees. Rodney continues to see an influx of out of town buyers looking to re-settle within the region as parts of Rodney are currently experiencing high growth in commercial building activity. Auckland’s property market is always changing, but it is likely that there won’t be any major changes to the current patterns until spring.”
For example, Franklin sees a steady demand, with moderate increases in sales, prices holding and a good listing base, whereas East Auckland is
Median Sale Price for April 2018 Pakuranga Pakuranga Heights Manukau Howick Highland Park Half Moon Bay
826,500 850,000 $820,000 $998,000 $890,000 $855,000 0800000 000525 525 mikepero.com mikepero.com 0800
Annual Median Price Changes
REINZ Residential Statistics Report for April 2018
REINZ House Price Index
The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.8% year-on-year to 2,706. The HPI for New Zealand excluding Auckland increased 6.6% from April 2017 which equals the record high set last month of 2,546.
“Real estate industry sees highest annual volume increase in 23 months”, says REINZ.
The REINZ HPI showed that 11 out of 12 regions 5.8% 12.0% experienced an increase in their HPI over the past 12 months, highlighting the continued strength 19.4% of the property market. The only region not $305,000 to experience an increase was $550,000 7.1% Canterbury, which experienced a minor 15.8% 3.1% decrease of 0.3% year-on-year – nothing 2.4% for the region to be concerned about. The Gisborne/Hawke’s Bay region 4.2% again had the highest annual growth rate at +14.7%, again followed by Manawatu/Wanganui in second place (+12.7%) and Southland in third place (+11.4%) highlighting the strength of these regions.
median house price
NATIONAL MEDIAN PRICE CHANGE YEAR-ON-YEAR :
UP 1.9% TO $550,000
RECORD MEDIAN PRICES
The median number of Increased / Decreased days to sell a property nationally increased by 2 days from 34 days in April 2017 to 36 days in April 2018. This is 2 days more to sell a property than it took in March this year. Auckland saw the median days to sell a property increase by 2 days to 37 (up from 35 in April 2017) and the same number of days as in March 2018. Regions with the biggest decrease in the median number of days to sell were West Coast (-68 – the lowest number of days to sell for the month of April for 5 years), Taranaki (-6 days) and Bay of Plenty (-2 days). Regions with the biggest increase in the median number of days to sell were Gisborne (+11 days), Marlborough and Southland (both +8 days) and Manawatu/ Wanganui (+6 days).
Inventory The number of properties available for sale nationally increased by a marginal 1.1% (from 25,988 to 26,269) compared to 12 months ago. This figure was again buoyed by inventory increases in Nelson (+19.9% - an additional 74 properties – the largest annual inventory growth since January 2009), Waikato (+9.2% - an additional 161 properties, the exact same increase as last month) and Canterbury (+8.2% - an additional 306 properties). The New Zealand excluding Auckland inventory level fell by 0.5% from 17,061 in April 2017 to 16,975 in April 2018. However, Auckland’s annual inventory increase of 4.1% is the lowest annual increase since October 2016. Regions with the biggest falls in inventory were: • Southland – down 16.2% • Marlborough - down 11.9% • West Coast - down 11.7% • Manawatu/Wanganui – down 10.8%. Highlighting the lack of inventory across the country, the Wellington region still has the lowest level of inventory across the whole country with only 8 weeks’ inventory available to those looking to purchase in the area. The Hawke’s Bay again only has 9 weeks’ inventory; however, this is the first positive annual inventory change since July 2014.
Price Bands Between April 2017 and April 2018, the number of homes sold for less than $500,000 across New Zealand fell from 44.6% of the market (2,664 properties) to 43.1% of the market (2,747 properties) which is reflected by the overall increasing median price. The number of properties sold in the $500,000 to $750,000 bracket increased from 26.9% in April 2017 to 28.3% in April 2018. At the top end of the market, houses sold for more than $1 million decreased from 14.2% of the market in April 2017 to 13.8% of the market this year.
0800 000 525
Median days to sell in APRIL
Days To Sell
“The last time there was an annual increase in the number of properties sold that was this strong, was in May 2016. It is a pleasing result for the industry that we have had three out of four months suggesting that the market is in a good position,” says REINZ Chief Executive, Bindi Norwell.
Median house prices for April 2018 were recorded as follows: Northland Auckland Waikato
$455,000 $850,000 $503,000
Bay of Plenty
Hawke’s Bay Manawatu/Wanganui Taranaki Wellington Nelson Marlborough Tasman West Coast Canterbury Otago Southland NZ excluding Auckland NEW ZEALAND TOTAL
$431,250 $305,000 $365,000 $558,000 $550,000 $420,000 $530,000 $172,000 $441,000 $460,000 $250,000 $460,000 $550,000
The REINZ House Price Index shows: National
+3.8% on April 2017
National ex Auckland
+6.6% on April 2017
+0.9% on April 2017
-0.1% on March 2018
National ex Auckland Auckland
+0.0% on March 2018 -0.3% on March 2018
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
Taking Advantage Of The Winter Property Market With the colder months of winter having arrived, the property market also has a tendency to cool off, with some sellers tempted to hold off until spring and summer to sell their property. However, there are some distinct advantages to selling your home during the winter months.
neighbours - instead attracting
and heating systems. Heating is of
those who are serious buyers that
particular appeal if you are selling
have the intention of making a
an older house and it can be a
pivotal factor when a buyer looks to
Here are some great ways to
make their home-buying decision.
maximise the viewing potential
There are generally fewer listings
coldest time of year, you have the
on the market during winter,
opportunity to showcase all of your
however this can open your
winter warmers and demonstrate
home to greater exposure. A
that they are working and ready for
lack of listings can also result in
the purchaser to use. Buyers will
increased buyer competition.
ask themselves if it felt cold while
The colder conditions should
looking through the house and they
filter out any tyre kickers or nosy
will look for functioning hot water
of your home during the winter months.
With winter comes colder temperatures, shorter days and
less natural light. A lot of people
By selling your home at the
who are thinking about attending an open home will often drive past the property in the evening and nothing looks better than a house lit up at night time. Therefore it is a good idea to set timers up for those night time drivers reducing your power bills.
We try harder. “We’ll go to great lengths to sell your home for more, in less time and with lower fees.” 0800 000 525 mikepero.com
Mike Pero Real Estate Ltd. Licensed REAA (2008)
0800 000 525
Thinking of Selling? HOWICK
I can achieve an outstanding result through my sales and marketing expertise.
OUR LOW FEES
2.95%* ing of Selling? BOTANY DOWNS
Vendor Moving Out Of Auckland
*Our fees are 2.95% up to $390,000; thereafter 1.95% + admin fee + gst.
n outstanding result through marketing expertise.
Elsewhere commissions may vary up to around 4%
*Our fees are 2.95% up to $390,000 thereafter 1.95% + admin fee + gst. BUCKLANDS BEACH Elsewhere commissions2may1 vary up to around 4% Potential Plus ... Well Worth It!
Susan Howe m 021 173 6611 e firstname.lastname@example.org w https://susanhowe.mikepero.com/ THE SMART WAY TO SELL REAL ESTATE 0800 000 525
Mike Pero Real Estate Ltd Licensed REAA (2008) Statement relating to passing over of information - mikepero.com/receivinginformation
Property Talk with Susan Howe, Mike Pero Real Estate, Autumn-Winter 2018