Spring Boost for North Shore Market
In October we saw a boost to the North Shore real estate market with the highest sales volumes in 5 months and the highest median sales price in 4 months. September sales were somewhat restricted due the shortage of available listings, however following an increase in September listings we have seen the flow through effect of higher sales with prices remaining stable. Listing volumes continue to remain strong and we anticipate strong trading through to Christmas.
The North Shore median price in October was $1,000,000, up slightly on $990,500 in September but down from $1,056,000 in October 2017. It seems prices may have found their happy median for the time being with prices fluctuating around $1,000,000 for the past 12 months.
There were 321 sales on the North Shore in Oct 18 up 10% on the same time last year. Days on the market remained relatively low at 36 – the lowest since December 2017.
It should be noted that last year’s sales volumes were impacted by the election. October also saw the introduction of the foreign buyer ban. From 12th December 2018 The Residential Tenancies Amendment Bill prohibits letting fees being charged to tenants. On the 1st January Real Estate changes to the Anti-Money Laundering and Countering Financing of Terrorism Act take effect for Real Estate.
Primary indicators continue to point towards an active, sustainable & stable market. A renewed confidence was demonstrated by buyers fuelled by an increase in available listings and the traditional spring lift providing great opportunities for buyers & sellers.
Increased listings fuel market
The arrival of the spring market was somewhat delayed due in part to the shortage of available listings. As a result, September sales volumes across the market were conservative and at similar levels to 2017. However, listings were strong in September, and it is anticipated this will fuel sales in the lead up to Christmas with October, November & December traditionally being 3 of the biggest months of trading for real estate.
Auckland region had 1,616 sales in September with a median price of $850,000 – the same as September 2017. It appears buyers and sellers have settled into a happy median with values.
North Shore’s median price bounced back from a drop in August to $980,000 in September, still 7.4% down from $1,058,000 in September 2017. North Shore sales volumes for September were 291, compared to 298 in August and 280 in September 2017.
The changes to the Overseas Investment Act come into force on Monday 22nd October which will require all purchasers of residential land, regardless of whether they are an “overseas person” or not, will need to complete a new document called ‘Residential Land Statement’.
It is a great market for both buying and selling real estate with lots of energy and activity in the run up to Christmas. There are lots of factors to give cause for buyers & sellers to act now; increased listings, auctions brought forward, low interest rates, stable prices, stable days on market… not to mention ‘it’s a great place to live’… all contributing to confidence in the stability of the market moving forward.
Robert Carter BBS
Harcourts Cooper & Co
Market energy bounces into Spring!
Above average August temperatures appear to have contributed to fuelling an early start to the spring market. In the marketplace we have seen a notable increase in buyer activity, auctions brought forward & multiple offers over the past couple of weeks.
August statistics indicate positive times ahead with momentum building in the market. North Shore sales volumes remained relatively level when compared to the same period last year although the North Shore median price was down.
North Shore’s median price decreased to $915,000 from $985,000 in July 2018 and $1,072,000 in August 2017. This was the lowest median since January 2016, potentially attributed to an increase in lower priced properties & apartment sales in the period.
Auckland region had 1,792 sales in August and for the first time in six months saw a year-on-year increase in median sale price to $852,000; up from $830,000 in July 2018 and $840,000 in August 2017.
Sales volumes remain stable with 298 sales on the North Shore in August compared to 277 in July 2018 and 292 in August 2017.
All in all, a good solid winter market and key indicators pointing towards a busy spring market!
Robert Carter BBS
Harcourts Cooper & Co
Energy builds in Auckland property market heading towards spring…
Market Update – July 2018
Auckland property continues to trade well through the winter. Illustrating reassuring signs of a stable and sustainable market that is building energy heading into spring.
We saw very little change in median house prices with the North Shore down 1.3% from the same period last year to $985,000. North Shore sales volumes were up slightly to 274 compared to 268 in July 2017. Across the Auckland & North Shore markets sales volumes are slightly below 10-year averages.
We have seen headlines around Labours new bill to curb foreigners buying New Zealand homes. Around 2% of housing was purchased by those without NZ citizenship – predominantly Chinese and Australians. The Overseas Investment Bill will restrict this although exclusions are in place for people from Australia & Singapore due to free-trade rules. It seems unlikely that banning foreign buyers will have any impact on house prices and ultimately the underlying problem of increasing supply and lending restrictions remains paramount.
We continue to experience strong demand from qualified buyers for the right properties. Last week Harcourts Cooper & Co Auctions had an average of 1.9 bidders per property. This is the highest we have reported this year. In July we had a 72% success rate with our auction properties plus an additional 5% under offer.
Removing the media hype and looking at the facts indicates the market is stable and well positioned and pointing towards an active spring!