Analysing the latest real estate data and assessing what sector leaders are saying, PJ TAYLOR concludes it’s the best time to be buying a home in recent years – mortgage rates are down to favourable levels and the choice of properties is vast especially in the affordable $750,000 and lower price range, though for sellers it’s taking time and patient negotiating to get the return they’re comfortable with.
East Auckland
Barfoot & Thompson Howick branch manager Steve Maserow says: “The market is still very tough for vendors”.
“The good news is there are more buyers out there but that has not yet resulted in higher prices.
“Buyers are still only buying what they consider to be value propositions and there’s still a lot of choice for purchasers.”
Maserow says in September, Barfoot & Thompson Howick listed 145 properties and sold 117.
“I attribute these volumes to having a prolific sales team who know how to get great results for our vendors in these market conditions.”
He predicts the next six months will be better than the past six.
“In the 12 months to September, Barfoot & Thompson has achieved a massive sales market share of 48.5 per cent, which means we sell almost one out every two houses sold.
“I do not have a crystal ball, but I believe we’ve reached the bottom of the market, and I do not expect further price reductions.
“But due to many economic factors out of our control, it may take some months before we start seeing a meaningful increase in sale prices.
“Bottom line, if you need to sell now, it’s a much more positive experience than it has been for the past 18 months as there are more willing and able purchasers in the market right now.”
Maserow says his “top tip” to vendors is: “Rather work with the salesperson who has the skills to achieve a result in this market than the salesperson who tries to entice you with a discounted fee – there are usually two very different results, sometimes amounting to tens even hundreds of thousands of dollars, which is a high price to pay for a relatively small upfront discount.”
Alana Nicholls, sales manager for Ray White Eastern Group based in Howick, says listings of homes for sale “are noticeably up this spring with more sellers choosing to list, driven by renewed confidence in the market”.
She adds that lower interest rates are also starting to stimulate activity.
“With a wide range of properties in price points, styles and locations, we have something for everyone.
“In the auction space we’re seeing more properties selling under the hammer with more registered bidders than this time last year.
“This is becoming the most favoured method of sale for vendors as it gives speed, certainty and to capitalise on buyer competition.”
Nicholls says with the decrease in mortgage interest rates, the first home buyers’ market “has really kicked into gear”.
“It’s great to see these families able to get into their first home and on the property ladder.”
Her predictions for the east Auckland summer selling season are for more listings coming on the market.
“Vendors are sensing improved buyer activity, for the top-end homes that are in a good location, condition and presentation the days on market will shorten with multi offers and pre-auction offers increasing.”
Regional Auckland
Barfoot & Thompson managing director Peter Thompson says the Auckland region’s residential housing market’s price stability carried on last month, with the median selling price rising to $950,000.
“While October’s median selling prices increased by 2.2 per cent during the month this is not an indication prices were on the move, rather it’s a signal prices are stabilising around the $950,000 mark.
“Buyers are not yet prepared to put aside their caution.
“It does point to the market having reached a sound price base, and one from which it can face the summer trading season with growing confidence.”
Thompson says the Auckland housing market is “still waiting for a recovering economy to give it that final push”.
“The average sales price for October at $1,079,030 was within 1 per cent of September’s average price, and it too has been stable for three months.”
He says Barfoot & Thompson sales numbers in Auckland were 930 properties for the month, down 9.9 per cent on September, and 4 per cent lower than in October last year.
“It still represents a solid month’s trading. Sales in the under $750,000 price category continue to have a strong pull on the median price, with a quarter of all sales in the month falling into this price category.
“Two years ago, they represented only 16 per cent of sales in October.
“It underlines the influence lower cost town houses and apartments are having on the nature of Auckland’s housing stock, and median and average sales prices,” Thompson says.
“The arrival of spring has seen the traditional strong rise in new listings with 2167 new properties being listed, an increase over those for September of 21.7 per cent.
“At [October] month’s end we had 6024 properties on our books [across Auckland], the highest level in three months.
“Rural and lifestyle markets experienced modest trading during October, with sales turnover of $38 million being the lowest month’s trading this year,” Thompson says.
Auckland and nationally
High activity website www.realestate.co.nz believes “confidence has sprung back” into the property market.
It says new listings of residential properties for sale increased 5.5 per cent nationally compared to October last year, with rises in 15 of the 19 regions.
The 12,209 new listings were the highest for an October month since 2018, “an indication that sellers are feeling more confident about putting their homes on the market”.
It says the national average asking price, at $862,563, represents a 1.1 per cent jump year-on-year.
“With an increase in listings hitting the market, plus a regional all-time asking price high like we’ve never seen before, there are early signals a shift is beginning to take place,” says Vanessa Williams, spokesperson for realestate.co.nz.
“It says the activity seen throughout October suggests confidence is returning to the market.
“And, with asking prices remaining stable, both buyers and sellers can enter the market feeling confident it will deliver a favourable result.”
Williams says the number of new listings in Auckland was the highest of any region in October, 10.6 per cent more than for the same month last year.
Cotality NZ’s latest Home Value Index (HVI) shows property values nationwide edged up by 0.2 per cent in October, the second modest rise in a row.
However, in Auckland it fell again by -0.2 per cent, says Cotality NZ chief property economist Kelvin Davidson.
“Tāmaki Makaurau’s various sub-markets remained a bit patchy in October, with Franklin rising by 0.3 per cent and North Shore edging slightly higher too.
“However, Rodney, Manukau, and Papakura all ticked down by -0.1 per cent, with bigger drops in Auckland City and Waitakere.”
Davidson says over the past 12 months, the super-city has seen a -2.0 per cent drop in values, “reflecting weakness in North Shore, Auckland City, and Manukau – which combined account for almost 70 per cent of all dwellings in Tāmaki Makaurau Auckland”.
“The stock of available listings across the super-city has eased downwards this year, potentially lessening buyers’ pricing power to a degree.
“But the new-build pipeline remains active. And several economic sentiment indicators or surveys for Tāmaki Makaurau Auckland are still subdued, and this cautious mood is clearly pervading the property market too.”
