West Melton Market Report (Issue 6)

Market Commentary

With the leaves falling and winter fast approaching, we find ourselves in a real estate market where house prices are continuing to decline, with this trend expected to continue to the end of 2023. In terms of the real estate cycle, we are definitely at the “fall” stage, following the strong “boom” and “peak” of the previous two years.

However, it’s not all doom and gloom. Due to the recent market growth being so incredibly strong (New Zealand wide, there was a 43% growth in prices between March 2020 and March 2022), nationwide house prices in March 2023 are actually sitting at around 25% higher than they were back in March 2020.

In saying that, your property today is not going to be worth what it would have sold for a year ago. In West Melton, the median house sale price has dropped by 8% in the past six months (October 2022 – March 2023.) Comparing year on year (March 2022 to March 2023), the drop is significantly higher, at 25%.

To give you an example, a property purchased for $1,500,000 in March 2022, may only sell today for $1,125,000 – if it was to strictly follow the market trends. Interestingly, in West Melton, there was a 25% decline in the difference between the highest sale price in this past six month period compared to the previous. Of course, we are not comparing the same house, so other factors do come into play. But it is significant nonetheless.

The past six months have also seen two other expected trends. Overall, there are less sales per month, and the average days a property is on the market has increased by 51%.

With a high inflation rate, and interest rates still on the rise (but hopefully for not much longer), homes will continue to be worth less. In the next few months, many people will be faced with their fixed term mortgages coming to an end, so as long as you are in the position to still pay your mortgage with higher rates factored in, it’s just a matter of riding out the storm.

If you are looking to sell though, now is still a good time – before prices drop further. We are still getting a lot of interest in the properties we have on the market, with the number of potential buyers coming through open homes rivalling post-Covid numbers. We also have continued interest from national buyers for properties in the area.

Vendors just need to be realistic about the price they can achieve in this market. When properties are marketed with a realistic price guide, they attract the right buyers, allowing you to get the best possible price for your home in the shortest time possible.

Looking towards the end of 2023 and the possible “bottom” of the market, what do we expect to see following? I predict that, moving into 2024, we will see a return to a healthy level of growth at around 2 – 4% per year.

Should you ever need any real estate advice, I am always here to help. As your area specialist, please reach out at anytime.

Nathan Najib

A little about Nathan Najib

Nathan is proud of the life he has created. Every day he is living his desire to change the world of real estate from something it should never have been, to something that supports the community and helps others.

Starting out in the real estate business at 19, by 23 Nathan was recognised as being one of the best in the industry. However, he felt there was something fundamentally wrong and wanted to make a difference. He decided to build his own vision: To create the most people-focused real estate company on earth.

Now Najib Real Estate is changing the perception of real estate, bringing integrity and transparency to the process. It holds close the philosophy that the interest of the client always comes first. We know what's important, and we are always ready to listen to you and your needs.

Embedded in everything we undertake, Najib is committed to its core values of: Health, Humility, Commitment, Progress, and Recognition and Celebration.

Success at Najib Real Estate means treating people well, building long lasting relationships, and making the process as simple and transparent as possible. We go above and beyond, and provide an excellent experience that keeps clients coming back time and time again.

West Melton Breakdown in the last 6 months

32 Genesis Drive, West Melton

October 2022

"The sale of my home was excellently handled by Nathan and the team at Najib. The process was completely hassle-free, and I was impressed by the promptness with which the property was sold. Throughout the transaction, there was excellent communication and a high level of professionalism. I wholeheartedly recommend Najib Real Estate to anyone contemplating a sale."

Erica (Vendor)

Sold by Nathan Najib for $1,105,000

"Hassle-free and professional."

1 Rossington Drive, West Melton

October 2022

"Our home was on the market with a different agency in the peak of the market and the agent couldn't sell the house. Even though we missed the peak of the market, Nathan specialises in the area, and even more importantly, is a skilled negotiator. Thanks to Nathan and his team for doing such a great job."

Tracy and Maggie (Vendors)

Sold by Nathan Najib for $1,610,000

73 Rossington Drive, West Melton

Sold by Nathan Najib for $1,235,000

March 2023

"With due consideration we chose Nathan and his team at Najib, for their dedication and professionalism in handing the sale of our home. We have watched Nathan since he first began selling properties in our region and his sales results and success speak volumes. Without hesitation we would recommend his services."

John and Carolynne (Vendors)

"Without hesitation we would recommend Nathan's services."

70 Kingsdowne Drive, West Melton

Sold by Nathan Najib for

March 2023

$1,100,000

"We knew how we wanted to market our house, and Nathan, Sha and the team were ready to listen and guide us. Exceptional communication throughout, we always felt comfortable and informed, and the whole experience was less overwhelming because of their professionalism and calm, caring manners. We would highly recommend Najib Real Estate to anyone who wants a great team to work with and a team who delivers a great result too."

Richard and Charlotte (Vendors)

"Best team to work with hands down."

Residential Sales in West Melton

October 2022 - March 2023

West Melton Monthly Median House Sale Price

West Melton Number of Houses Sold Monthly

Lifestyle Property Sales in West Melton

October 2022 - March 2023

West Melton House Sales

West Melton Annual Sales Data

Residential House and Section Sales

Start with a strategy, end with a sale.

Views: 45% more

Watchlisters: 28% more

Emails: 56% more

Phone: 48% more

Trade Me Statistics, Najib Real Estate

ComparedtootherlistingsonTradeMe

Basedondataoverathree-monthperiod2023

Interest rates and inflation might be up; however, this does not mean that the real estate market stops. In fact, according to data provided by Trade Me, January 2023 saw a 29% increase in nationwide listings when compared with January 2022. What does become more important than ever though in a buyers’ market, is your selling strategy.

Below are 4 key factors that we have identified as vital not only in any market, but in particular in a downturn, where supply outweighs demand and median house sale prices are decreasing.

First and foremost, you need an agent who understands the current market, adjusts their strategies accordingly, and who is willing to have an open and honest conversation with you about the value of your home today – not 6 or 12 months ago.

Secondly, it is imperative to engage 100% of the market. A recent survey conducted by realestate.com.au found that 72% of prospective buyers will scroll past or ignore properties that do not have a price or price guide. At Najib we always market properties with a price guide, so when you come to us, you are dealing with 100% of the market, not just 28%.

Thirdly, you don’t want to compromise when it comes to marketing your home beautifully. You need to choose a premium online package that will put you in a prime position for web-based searches. According to realestate.com.au, 40% of buyers do not go past the first page of results when searching.

With the way online packages are structured, if you do not select a superior package, you may never appear on the first page – even if your property is the latest listing. You also need to include a high-end social media package that pushes your listing to not only those searching in your area, but also a wider range of buyers who are looking in neighbouring suburbs at similar properties.

Finally, people are time-poor; they don’t want to go hunting for basic information when they are looking for a property. Property information needs to be available at buyers' fingertips, as the last thing you want is for buyers to be frustrated before they even turn up to your open home. The two top things that frustrate buyers are not having a price guide (72%) and not having a floor plan (54% of those researched by realestate.com. au.) This is why when you list with Najib, your home will always have both of these included.

Anyone can put an ad on Trade Me or realestate.co.nz, but in times like these, you want an agent who is going to give honest advice and add value. After all, if you start with the right strategy, you are going to end up with a great sale.

Najib Property Management

This year we have welcomed Bhavi Sethi to Najib as our Senior Property Manager. Bhavi has over 5 years of experience in property management and his attention to detail, combined with his knowledge, will be an asset to the property management team.

We manage properties all across Christchurch and Selwyn, providing the highest level of service to our landlords and tenants.

We know that the key to a successful investment is having great tenants who look after the property to a high standard and pay their rent on time.

Our passionate and proactive team focus on achieving optimum results. Najib prides itself on reading the market's ebbs and flows to ensure your property always attracts its maximum rental value, with minimal vacancy times.

With our finely-tuned documentation processes and a sound understanding of legislation front of mind, we leave fewer things for you to worry about. This brings you one step closer to securing a profitable future with a steady investment return.

If you would like to find out more about property management with Najib, please take a moment to touch base with Nathan or Bhavi. We would love to help you manage your investment.

Bhavi Sethi

m 021 432 684

@

bhavisethi@najibre.co.nz

Our Najib Sales Consultants

m 027 514 0775

@ nathan@najibre.co.nz

m 027 375 3670

@ shajega@najibre.co.nz

m 027 310 0369 @ vicraha@najibre.co.nz

m 022 397 8685

@ lizzieweisner@najibre.co.nz

Nathan Najib West Melton Specialist

Sha Jega Lincoln Specialist

Vic Raha Rolleston Specialist

Lizzie Weisner Cashmere Specialist

Thank You

At Najib, our agents know the importance of specialising in an area when it comes to selling real estate. Nathan Najib has been specialising in West Melton for the past 7 years, and earlier this year, we were recognised at the 2023 RateMyAgent awards, winning Agency of the Year for the West Melton suburb.

This is a huge privilege for us as we know that these awards celebrate the top-performing agencies, with reviews provided solely from the consumers.

We would love to thank all our clients and customers for being a part of Najib Real Estate over the past year, and for the wonderful reviews you have provided.

Nathan Najib

najibrealestate.co.nz