Property Market Update - March 2023
The real estate market had a bumpy start to the year. An already subdued market was further slowed by the traditional holiday period and long weekends – when the market usually starts to gain momentum in February it was confronted by the Auckland floods and then a week later Cyclone Gabrielle.
In March the market finally had an opportunity to settle into a trading rhythm and a significant increase in activity reported. Here on the North Shore we saw sales volumes increase substantially… there were 294 sales up 78% when compared to February, yet still below long term averages.
The acceleration of population growth is a positive sign for the property market. Data out last week showing an annual gain of 52,000 people – compared to a net annual migration loss of 20,000 a year ago. That is a 1% boost to our population requiring some 19,000 extra houses.
As the market continues to navigate the economic head winds, a backlog of restrained transactions is building. Again in March it was evident that the rate of decline in prices is continuing to slow with a 0.4% decrease in median sale price month on month for Auckland, compared to a 16.6% decline over the past year.
Auctions continue to be a successful and transparent method to transact in the current market. In March we conducted 72 auctions, with 53% of them sold!
So whilst there is no denying the current economy is influencing market activity, in doing so it is also delivering opportunities for astute buyers & sellers.
It remains critical to be aligned with the best possible real estate advisors and I encourage you to reach out to one of the Harcourts Cooper & Co team
Property Market Update - February 2023
Have prices bottomed out?
February usually sees kids heading back to School and the real estate market settling into its trading rhythm for the year.
This year the prevailing economic headwinds already facing the property market were further hampered by the Auckland floods and then a week later Cyclone Gabrielle along with Auckland Anniversary and Waitangi weekend. It is fair to say it was a disrupted & bumpy start to the month.
So as the market now settles into its rhythm for the year, where’s it heading?
- There is no shortage of headlines to tell you that prices have declined – across Auckland that decline is 15% year on year. It should be noted that whilst there are definite year on year price declines the pace of decline has slowed decidedly and in fact data for our 3 core markets showing month on month price increases in February. Given the disruptions associated with February’s trading and the low volumes it is too early to make conclusive assumptions, but is fair to question if this could be an early indication that prices have bottomed out?
- Another distinct change is the time it is taking to sell a property now sitting around 60 days –– timeframes we haven’t seen since the GFC. Hence for those looking to sell it is vital to make your property stand out. With more choice available for buyers’, presentation & promotion become more important along with realistic price expectations.
- There does remain strong demand for good properties. We have daily stories of properties with multiple offers, several this week with over 5 offers presented. Along with some fantastic success stories in the auction room
- Immigration data out last week also interesting, reporting a rapid turn around in net annual migration from a loss of over 13,000 people just 6 months ago, to now a net gain of 33,000 for the year to January. Accelerating population growth of course increasing the demand for accommodation and likely amplified in Auckland with migrants tending to favour the big cities. The impact of this is still being challenged by rising interest rates and cost of living but will create an interesting supply & demand interaction – particularly with a sharp slowing of new dwelling construction this year.
So what does all this mean?
- For cashed-up buyers, the market doesn’t get much better than this!
- For sellers, it is vital to have your property well presented, well marketed and you’ll need to be prepared to align with the markets expectation of price.
Now more than ever it is critical to be working with trusted real estate advisors. Talk to a Harcourts Cooper & Co professional to guide you through your buying & selling decisions.
Property Market Update - December 2022
2023 will be all eyes on the property market, with the impact of higher interest rates and economic uncertainty producing some caution and subdued market activity
Prices at the end of 2022 were lower than at the end of 2021 – here on the North Shore that was a reduction of 16%. It’s important to keep last year’s price decreases in context. Comparing the last quarter of 2022 to the same period in 2020 – you will see they are similar with 2022 still slightly ahead and current values still well ahead of 2019.
And whilst prices have eased, it appears the rate of decline is slower – this is evidenced by the December North Shore Median of $1.28M being the same as August.
Sales volumes have also been significantly impacted. On the North Shore, there was 3,200 property sales last year compared to 4,900 in 2021 and 4,500 in 2020.
It is anticipated volumes will increase this year as many make necessary transactions to adjust to the new environment
If you are a buyer, the current environment is creating opportunities. If you can make the finances work – this is the market many have been asking for – more stock, less competition, and easing prices.
For those looking to sell it will be critical to be aligned with the best, most trusted real estate team to provide the right advice & assistance with the presentation, marketing, pricing & negotiation.
“Spending time around our offices this week I have been impressed at the activity early in the year with multi-offers, back-up offers, and pre-auction offers. There have also been several stories of properties that have been on the market for a long time now under contract. Many of the successes were following adjustments to the sales strategy”
So, an interesting year ahead – some uncertainty and volatility – but still lots of opportunity.
Property Market Update - October 2022
North Auckland Median Price and Sales Numbers Impacted as Expected
It comes as no surprise that last month’s median prices throughout Auckland have suffered in the current market when compared with the same month last year.
It is important these comparisons are taken in context. Whilst these comparisons are down on a year ago many are still well ahead of pre-covid times. The November NZ Property Market Report produced by Valocity confirmed this – for Auckland they reported a 9.8% decline in prices since the peak in January this year, yet a 28.2% increase since pre-covid.
If you look back at the life cycle of the property market since 1981… following the Asian Financial Crisis in the late 90’s, sales volumes peaked in 2003 and then declined rapidly post 2008 GFC
Since 1981, the most rapid growth in prices has been between 2020 to 2022. Whilst this ‘boom’ was not only surprising given the impact of covid, it saw a significant increase in prices but did not see such a substantial increase in the volume of sales
“In the same month last year, there was confidence and urgency in the market, and we were relatively untouched by what has happened in 2022.” Harcourts Cooper & Co general manager Rob Carter says. “This year has seen rising interest rates, the soaring cost of living, property regulation, adverse global events, tightened lending criteria, macro-economic impacts and tax legislation, to name just a few.”
“However, the REINZ has indicated that increasing enquiries and a notable increase in the numbers of particularly first home buyers is being reported in the market, and we believe this augers very well for a more buoyant 2023.”
On the North Shore, the $1.199 million median price last month was down 18.2% on October last year. The 247 sales for the month equated to a 41.3% reduction, and it took 43 days to sell a property – down 10 days.
In Rodney, the $1.23 million median price was down 6.5%, and 147 sales resulted in a 30.3% reduction. It took 52 days to sell, up three days on October last year.
The Northwest saw a median price of $1 million, equating to a 10.9% decrease on October last year. The 260 sales were down 45.5%, but it took 45 days to sell – up nine days on 2021.
