Market Update | August 2021
We went into lockdown with rising prices and sales volumes were circa average when looking at the longer term trends. The recent data released from The Real Estate Institute of New Zealand (REINZ) for August showed a median North Shore sales price of $1,295.000. This is an increase of 16% when compared to the same period last year.
New Zealand achieved another record median sale price of $850,000.
Given New Zealand was in level 4 lockdown from the 18th of August it is certainly of no surprise that the sales volumes were impacted. The 331 sales achieved on the North Shore in August was approximately 23% down when compared to the same period last year. Median days to sell however do remain low at 34.
Our online auctions at Harcourts Cooper & Co continue to be exceptionally strong during the current lockdown we completed 33 online auctions with 32 of those selling under the virtual hammer. Our auction team in August conducted 79 auctions with an overall success rate of 92%.
Aucklander’s are hopeful that next week we will see a move to level 3. Confidence is high that the market will remain strong as we enter into this usual busy spring selling season.
The current lockdown is likely to have propelled that energy, the built up demand from buyers wanting to purchase, vendors wanting to sell, people needing to move, add to that the fuel of low interest rates, low unemployment and furthermore the confidence in the markets reaction following a lockdown that was evidenced last year, all indicating a very strong finish to the 2021 property market.
Culture breeds success despite lockdown for Hobsonville duo
Anna Byron and Rebecca Bennett are the dynamic duo that have been taking the Hobsonville real estate market by storm in recent months. In just over 5 months, Anna and her team have unconditionally sold over 30 properties – some of them sight unseen in lockdown Level 4.
A top 50 sales consultant with eight years of experience in the property industry before joining Harcourts Hobsonville, Anna’s career was already on a stellar trajectory. With both parents in the industry, it appears a foregone conclusion that Anna would end up in real estate, but many of Harcourts highest performing sales consultants come from seemingly unrelated backgrounds. Anna and her team are a case in point.
The ten years Anna spent in the advertising and marketing industry in New Zealand and overseas have proven to be an excellent springboard for her real estate career, while Rebecca, who originally joined as Anna’s PA in April 2019, came from a retail background in the UK. Rebecca quickly moved through the ranks to become a highly successful salesperson in her own right and hasn’t looked back since. ‘Team Byron’ has recently expanded to include Sales Associate, Jillyn Tan and PA, Gill Wills.
So, what attracted Anna and Rebecca, two highly successful sales consultants with another major brand, to Harcourts? The pair agree that the culture was huge drawcard. “As outsiders looking in, it was very evident that Harcourts Cooper & Co had a caring, familial culture – and that they had fun too!”
Anna and Rebecca also wanted to increase the size of their team, but with partners and children to consider, they needed to do it in a way that created work/life balance for themselves. “Harcourts Cooper & Co had a very structured and supportive plan to get us to our goal”, says Anna.
They say their move to Harcourts Hobsonville has exceeded their expectations. “Within a very short period of time, under Sales Manager Ryan Mitchell’s wing, we’ve doubled our team, increased our brand awareness and not only retained our one per week list/sell average but increased it significantly with no downtime during the transition!”
Rebecca says they are thriving being around like-minded sales consultants and managers who challenge and inspire them daily – and who they also enjoy socialising with. Anna has been impressed by the incredibly supportive and hands on environment at Harcourts.
“In our first week, our Sales Manager, Ryan, offered to put out our signage for us – in the rain. On another occasion, when we had a couple of hundred call backs to make after a busy weekend of open homes, he offered to help with call backs to lighten the load. That’s pretty special.”
“Anna and Rebecca work unbelievably hard,” says Ryan. “From the numerous conversations I’ve had with their absolutely delighted sellers, it’s clear that these two are at the top of their game and love what they do.”
The impact of lockdown on the housing market.
Speculations are rife as to what impact the current lockdown will have on the property market. If history is anything to go by, we would see activity plummet during a level 4 lockdown as it did in 2020 and then increase rapidly in the months following. Last year we saw the lowest volumes on record during lockdown, followed later in year by some of the highest volumes as depicted on the North Shore sales volumes graph below.
But will that replicate in 2021? We have entered both level 4 lockdowns with rising prices and sales volumes close to average on a long-term basis. Entering the current lockdown, we have seen increased confidence from buyers – activity to date has remained high with high numbers of determined bidders active at our online auctions. At the time of writing Harcourts Cooper & Co had sold 100% of their online auctions during the current lockdown (25/25). Stock available is at extreme low levels with less than 900 listings currently available on the North Shore.
A notable difference between the 2020 and 2021 lockdowns in the interest rate & lending environments.In March 2020, the Reserve bank cut interest rates by 0.75 percentage points and removed the LVR restrictions.Yet in 2021 they have advised that rates are set to rise and LVR restrictions tighter than before for investors.
As we head towards the usual busy Spring selling season it is likely that the current lockdown will in fact propel the market – with built demand during the current restricted conditions and the fuel of low interest rates, low stock numbers, low unemployment and confidence in the markets response following a lockdown.
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