March Market Update 2023

Welcome to Ray White Parnell's monthly market update. All Statistical infomration is gathered from both REINZ Statistics & Ray White Parnell Statistics. Any questions please dont hisitate to contact us: 09 - 379 7066

Article: Tony Alexander: Should homeowners be panicking right now?

18 Ray White Parnell

20 Meet the team

MARKET COMMENT

Despite the continuing impacts of the economic climate, the New Zealand real estate market is showing resilience and offering opportunities for buyers.

According to the Real Estate Institute of New Zealand's (REINZ) March 2023 figures, the national median price decreased annually by 12.9% to $775,000. In Auckland, the median sale price for March 2023 decreased by 16.6% year-on-year but remained just over the $1m price point at $1,000,600. Owner-occupiers were the most active buyer pool across Auckland, and in West and South Auckland, first-home buyers were a close second. Although there was a decrease in first-home buyer activity in Central Auckland, this was due to continued difficulty in securing finance and young people traveling or moving overseas.

The Auckland market is also experiencing an increase in days on market, which rose to 45 days in March 2023, up six days year-on-year. Additionally, the aftermath of Cyclone Gabrielle continues to slow activity in some affected areas.

Nationally, 11.7% (688) of properties were sold at auction in March 2023, compared to 19.5% (1,352) in March 2022. The total number of properties sold across New Zealand in March 2023 was 5,877, up from 4,113 in February 2023 (+42.9%), and down 15.0% year-on-year. While new listings decreased by 17.7% nationally from March 2022 to March 2023, the total number of properties for sale across New Zealand was up 3,625 properties (+14.1%) year-onyear, and up 0.7% monthon-month. This suggests that

inventory levels are returning to the long-term average, offering buyers the advantage of choice as investors remain absent.

Regardless of the decrease in median prices and sales counts, salespeople in Central Auckland report that vendors who are motivated to sell are meeting the market with more realistic expectations on timeframe and price. Furthermore, with the number of listings continuing to ease, we may start to see the supply/demand balance change in some areas.

Although there are clear signs

that the New Zealand real estate market is in the lower phase of the cycle, the market is resilient and offering opportunities for buyers. The decreasing inventory levels and more realistic expectations from vendors present an excellent chance to buy.

PARNELL STATISTICS

There was a 73% decrease in the total number of sales year on year.

There was an 84% increase in the average Sale Price year on year.

There was a 50% decrease in the total sale value in Parnell year on year.

AUCKLAND STATISTICS

$3,405,080,000

There was a 35% decrease in total sales value in the Auckland Region year on year.

RAY WHITE PARNELL

March Sales

6 Peter Buck Road, New Windsor

Situated in a popular location with schools, transport options and shops all close by this just adds to the package.

SOLD $1,040,000

5 2

SOLD | 01 MAR 2023 1

4/34 Ireland Street, Freemans Bay

A gorgeous North facing 3 level terrace home right in the heart of Freemans Bay just a minute walk to the local New World on Franklin Road.

SOLD $1,080,000

SOLD | 01 MAR 2023

2/193 St Heliers Bay Road, St Heliers Bay

It's a lovely sunny apartment with fabulous views that gives you the opportunity to take advantage of everything the Bays lifestyle affords you.

SOLD $1,300,000 2 1

18 Kowhatu Road, Greenlane

SOLD | 05 MAR 2023

Long admired by many and at long last, 18 Kowhatu Road has come to the market.

SOLD $1,685,000

SOLD | 06 MAR 2023

404/250 Kepa Road, Mission Bay

This perfectly orientated penthouse features wrap-around floor to ceiling windows that showcase the sea view to Rangitoto and beyond.

SOLD $3,700,000

This recently renovated 3-bedroom home is made of solid brick and weatherboard and the best thing about it is the north-facing sun.

SOLD $1,050,000

17 Ruskin Street, Parnell

This home possesses undeniable charisma where voices and laughter are infused in the walls and the sounds of summer and songs of bird life permeate all around.

SOLD $2,300,000

34A Kowhatu Road, Greenlane

Having just undergone an extensive renovation that is sure to impress, there is nothing left to do - this home is ready for you to move straight in.

SOLD $1,699,500

2B/10 Laxon Terrace, Remuera

6 Bannister Place, New Windsor

Elevated and north facing, it is now looking for a new owner to take over and add their special touch.

SOLD $1,155,000

21 Stanniland Street, Sunnyhills

This home has big living areas so your whole family and guests can easily move about without stepping on each other's toes.

SOLD $1,305,000

98A Reihana Street, Orakei

Situated on highly sought-after Orakei ridge. Spacious 586 sqm (approx.) site with level back yard. Vast sunset views from the deck or relax in the low-maintenance native garden.

SOLD $1,540,000

6/10 Brighton Road, Parnell

Tranquil Haven with wide sea views. Low maintenance lock up and leave. Character boutique apartment, one of only 12.

SOLD $970,000

311 Riddell Road, Glendowie

Meticulously renovated and boasting water views across the harbour towards Half Moon Bay, this family home exemplifies Bays' living at its finest.

SOLD $3,965,000

40 Richard Farrell Avenue, Remuera

Situated in a tranquil neighbourhood close to a wide selection of community amenities, this gorgeous gem is the perfect entry level Remuera opportunity.

SOLD $815,000

11 Glenfell Place, Epsom

The approx. 429m2 (4600ft2) house is typified by Ron's Signature, brightly coloured red front door and nestled on approx.

SOLD $5,500,000

212/15 Rendall Place, Eden Terrace

Open the door and be greeted by the picturesque floor-toceiling windows adjacent to a spacious balcony accessible from both living and master bedroom.

SOLD $900,000

370 Point View Drive, Shamrock Park

First time on the market in 47 years!! So now is your chance to secure your amazing lifestyle block in this prestigious and highly sought-after street.

SOLD $4,605,000

295A Titirangi Road, Tirirangi

Secluded and peacefully nestled in native bush down a quiet right-of-way driveway, this substantial property comprising a 1202 sqm (approx.)

SOLD $980,000

53A Boakes Road, Mt Wellington

Attractively presented and ideally configured for first home buyers or astute investors, this very tidy rear sited property is in a super-convenient location.

SOLD $800,000

19 Ashby Avenue, St Heliers

Designed in 1962 by architect, Franz Iseke, this Bauhausinspired, single-level family home rests gently on the crest of the hill

SOLD $1,900,000

Your new home is well laid out with light and bright open plan living, dining and kitchen areas, great sized bedrooms and good storage.

SOLD $1,530,000

SOLD | 29 MAR 2023

Step through the gate into the zen-like courtyard entranceway and be transported immediately to another, far more tranquil place!

SOLD $1,852,000

SOLD | 29 MAR 2023

117 Ngapuhi Road, Remuera

7 John Stokes Terrace, Remuera

This article was first published on OneRoof.co.nz and is published here with permision

Tony Alexander: Should homeowners be panicking right now?

ANALYSIS: Monetary policy in New Zealand used to be relatively easy to understand. When the Reserve Bank wanted to slow down the rate of growth in the economy in order to get inflation down they would raise their official cash rate, banks would increase their mortgage rates, people would eventually pull back on their spending, businesses would lose some of their ability to pass cost increases into their selling prices, and inflation would come down.

But something quite interesting has happened here over the past seven weeks. On February 22 the Reserve Bank increased their official cash rate 0.5 percentage points and one would naturally expect that this would have led to an increase in bank mortgage rates. No increases occurred. Why was this?

The absence of any increases in fixed mortgage rates we could put down to the fact that the rate rise was expected and the cost to banks of borrowing money to lend at fixed rates to you and I reflects expectations for the cash rate and not where the cash rate is at the moment. Those expectations were met and therefore it's not surprising fixed interest rates have sat unchanged.

What was more surprising is that banks chose not

to pass on the higher cash rate into their floating mortgage rates. That is probably because of the record low levels of residential real estate sales recently bringing very low growth in mortgage business and banks scrambling to minimise their undershooting of sales targets.

But now, as of April 5, we have something potentially even more interesting. The Reserve Bank has again increased the official cash rate by 0.5 percentage points, to 5.25%. Banks may or may not increase their floating mortgage rates - we'll just have to see what the outcome is of competitive pressures. But what about fixed mortgage rates?

This is where things get very interesting. The markets were all ready for a 0.25 percentage point increase in the OCR. Therefore, in theory and based on what we saw in February, we should expect a rise in bank wholesale fixed mortgage rates. And one might then expect to see a round of increases in fixed mortgage rates. But is this likely?

Actually, no. The Reserve Bank has explicitly noted their concern at the way in which bank borrowing costs have fallen in recent weeks in response to developments offshore. It has

clearly become concerned that in an environment where banks are not meeting their sales targets they might actually cut their mortgage rates and tolerate below average margins for awhile.

Therefore, it looks like the Reserve Bank decided to increase the official cash rate 0.5 percentage points rather than the expected 0.25 percentage points, not to make mortgage rates go higher, but to prevent them from going lower. In fact, it is easy for me to write that because that is exactly what they said!

“However, wholesale interest rates have fallen significantly since the February Statement, and this could put downward pressure on lending rates. As a result, a 50 basis point increase in the OCR was seen as helping to maintain the current lending rates faced by businesses and households, while also supporting an increase in retail deposit rates.”

So, should people rolling off low fixed rates near 3.5% feel new worries about rolling onto a truly appalling rate in the near future? No, and that is partly because the April 5 rate rise and the comments explaining it from the Reserve Bank do not imply that the cash rate will rise higher than the 5.5% level indicated last November. In fact, whereas in February the Reserve Bank wrote “… monetary conditions need to tighten further…” this time no such comment was made.

Therefore, we could be at the cash rate peak right now. We shall see at the next review on May 24 whether one further 0.25 percentage point bump up is needed. Probably not.

- Tony Alexander is an independent economics commentator. Additional commentary from him can be found at www.tonyalexander.nz

Ray White Parnell

WHY CHOOSE US?

THE RAY WHITE PARNELL OFFICE SERVICES OUR OLDEST SUBURBS ON THE EDGE OF THE CITY AND THE WATER

Ray White Parnell is based at the heart of our communities who form Auckland’s historic boutique suburbs. We are a team of dedicated professionals who understand this unique market and are experienced in all property types - whether it’s for a family home, landmark property, city lifestyle or investing. As the surrounding suburbs remain a destination of choice for lovers of art, history and proximity to city life we are in the right location and the right frame-of-mind to provide market leading advice with a focus on people.

We encourage a unifying atmosphere where opportunities are created, individuals are recognised and everyone grows - from our team to vendors, buyers, investors, property owners and tenants. Our experienced and established team service many aspects of the Auckland City market - from rental apartments to luxury penthouse sales and from the classic family home to an epic waterfront estate.

Ray White Parnell also has a strategic partnership with Loan Market connecting our clients with experienced brokers to provide home, construction and refinancing loans with some of the best market rates.

We are all about open doors and open minds.

Commitment Hard Work Loyalty

PARNELL TEAM

Phil Horrobin Principal

Wayne Bulog Sales Manager

Andrew Fava Licensee Salesperson

Blair Stanaway Licensee Salesperson

Bryan Santos Licensee Salesperson

Carita Fenning Licensee Salesperson

Cheryl Paine Licensee Salesperson

Aadil Ahmed Licensee Salesperson

Di Fraser Licensee Salesperson

Dylan Ladopoulos Licensee Salesperson

Anne De Liefde Licensee Salesperson

Dean Tuffley Licensee Salesperson

Eden Thomson Licensee Salesperson

Ella Langsford Licensee Salesperson

David Smythe Licensee Salesperson

Angelina Vihrova Licensee Salesperson

Areeb Alam Licensee Salesperson

Bosen Han Licensee Salesperson

Cheryl Whiting Licensee Salesperson

John Q Principal

Evie Gao Licensee Salesperson

SImeon

Tan

Maryanne

Gary Walker

George Erdos Licensed Agent Greg Bayer Licensee Salesperson

Howard Sidnam

Dellar Licensee Salesperson

Janet Lambert

Foo Licensee Salesperson

Kris Rama

Salesperson Leo

Licensee Salesperson Lisa

Licensee Salesperson Miko Xu

Licensee Salesperson Rith Sdoeung

Salesperson Sharon

Salesperson Samantha Chaudhry

Kim Pausina

Salesperson

Licensee Salesperson

Licensee Salesperson

Salesperson

Licensee Salesperson

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Licensee Salesperson Shirin

Licensee Salesperson

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