Monthly Market Update | December 2019
Favourable factors for a fast paced 2020 market
December saw a significant upsurge in activity both in the North Shore market and across the country. When comparing against the same time the previous year; North Shore volumes were up 64%, prices were up 7% and days on the market reduced by 7 to 33 days!
This flowed through the Christmas & New Year period with the market energy & activity the strongest we have experienced for several years with large numbers of determined buyers active in the market.
An apparent acknowledgement amongst the buying public that prices are likely to increase again, combined with low interest rates is fuelling the confidence of investors, first home buyers are endeavouring to get on the property ladder before further rises and existing homeowners looking to upgrade.
The high sales volumes have reduced available listings and with multiple active buying segments, this is resulting in a strong demand for quality properties.
An extremely positive start to 2020 with all factors pointing towards a busy year ahead.
Update for North Shore market based on REINZ statistics for December 2019, released 16th January 2020.
Monthly Market Update | November 2019
Confidence climbing heading towards Christmas
Rising levels of confidence in the North Shore market is evident. The volume of sales increased again in November to 346, up 8.8% since the same time last year. Despite increased volumes, the median price reduced from $1,050,000 in November 2018 to $985,000 in November 2019.
A combination of low interest rates & shortage of listings continues to assist with fuelling the market. Median days to sell reduced to just 35. When aligned with owners prepared to meet the market with well-presented & well-marketed properties, generally achieving successful sales. In November our Cooper & Co Auction success rate was 69%.
Indicators suggest the market will remain strong heading in 2020, although it will typically experience a conservative period surrounding the election in the second half of the year.
Best wishes for a Merry Christmas & a happy & prosperous 2020!
Monthly Market Update | October 2019
A resurgence of energy & activity for the North Shore and North West market
The built-up demand as a result of the shortage of listings has been producing some remarkable results across all sectors of the market.
A favourable combination of market factors is fuelling the confidence of buyers. The cancellation of capital gains tax combined with tumbling interest rates has assisted with reigniting the market.
Sales volumes remain low when compared to long term averages with 318 North Shore sales in October.
For now, prices are holding steady, yet many are predicting rises on the horizon.
It is going to be a busy run of sales through to the end of the year presenting opportunities for buyers & sellers.
– Robert Carter
Spring enthusiasm despite supressed volumes
There has been a notable ‘bounce in the step’ of the North Shore market with good properties commanding strong interest. Stories of multiple offers, competitive bidding, increased auction success rates & quick sales frequenting the real estate airwaves.
However, sales volumes remain suppressed. Whilst in September both the New Zealand & Auckland market saw volume increases from last year, the North Shore market volumes remain at some of the lowest this century as presented on the graph below, with just 242 sales.
The pendulum of market forces is swinging favourably for the real estate market with low interest rates, abolished capital gains tax, housing shortage, and increased buyer confidence. There is also growing acceptance of recent changes to legislation with the Overseas Investment Act, Brightline Test change, Anti-money laundering & Residential Tenancies Act.
The North Shore median price has remained stable at $990,000 in September.
All in all, a solid start to Spring, key indicators pointing towards a stable market with momentum building despite the lack of availability of quality listings restricting sales volumes.