Property Market Update - September 2022
Spring surge, albeit subdued

North of the Bridge spring is certainly upon us and with it the seasonal surge in market activity, albeit subdued this year.  Our team are commenting on a notable increase in buyer activity both at open homes & auctions.

Auctions remain a favourable way to sell. At Cooper & Co, either onsite or at our Takapuna or newly opened Silverdale auction rooms, 67% of properties taken to auction in September sold.

When taking a closer look at some of the data reported by the Real Estate Institute of New Zealand for September, we need to remember the Covid lockdowns in August and September last year and the impact they had on the comparable period.

  • Here on the North Shore sales numbers appeared to be up on recent months at 322 and the median price down at $949,000 – however dissecting this data shows an Albany development with over 100 sales recorded for the month – predominantly with sale prices under the one-million-dollar mark.  Hence removing these sales, would have resulted in sales volumes of circa 220 and a median sale price of $1.25 million.
  • The Rodney sales volumes bouncing back above the long-term average whilst the median sale price dipping 3.6% when compared to the same time last year to $1.21 million.
  • In the Waitakere market, again volumes remaining stable at 271 for the month and prices dipping some 9.2% to $998,000.

Earlier in the month, the Reserve Bank of New Zealand increased the OCR for the eighth consecutive time – with low unemployment & inflation high, this was to be expected.  It does however pose challenges as increased borrowing costs make securing finance and debt servicing difficult for some prospective buyers.  This combination of rising interest rates, inflation and tighter lending criteria creating hesitancy amongst some buyers and opportunities for others.

The current market proving a more manageable environment to transact and with 10 weeks to Christmas there is time and opportunity to do so.

Property Market Update - August 2022

July 2022 Stats Bring Little Ray of Sunshine

There’s one encouraging trend to cheer about in this month’s REINZ data release of July real estate statistics.  North Shore’s median price has gone up to $1.398 million and while our sales volumes are understandably down – given it is winter and mortgage interest rates are changeable, to say the least – we’ve seen a 2% increase on July last year.

However, there were 209 sales, which is a drop of 47% on last year (397) and the number of days to sell has gone up 11 days to 44. North Shore’s median price in July 2020 was $1.075 million and in July 2021 was $1.37 million.

In Rodney, the median price dipped slightly from $1.218 million in July last year to $1.2 million last month. There were 106 sales during last month, and it’s taking 53 days on average to sell a house. Rodney’s July 2020 median price was $930,000, with an increase in July last year to $1.218 million.

In the NorthWest, a median price of $1 million last month meant value was down by 9.1% on this time last year, with 230 sales representing a 48% fall for last month. It is taking on average 43 days to sell a property, an increase of 15 days.

Auctions are continuing to play out in Auckland, accounting for 17.1% of all property sales.

REINZ says the increased volume of stock on the market (107.8% on the same month last year) is not the result of distressed vendors, as New Zealand’s high employment rate and banks’ lending conservatism continues to support the ability for homeowners to handle the impact of rising interest rates. Rather it is because buyers have stepped back; some deterred by successive initiatives to dampen investor appetite, others hampered by changes to the Credit Contracts and Consumer Financing Act (CCCFA) and reintroduction of LVRs.

“Prices have come down from their November 2021 peak, and in July we saw the annual median price decrease nationally — indicating many vendors are adjusting expectations to meet the market. Agents across the country report they are starting to see demand return from first home buyers in the market and some are seeing renewed interest from investors,” REINZ chief executive Jen Baird says.

Auckland’s July median price was down 5.6% to $1.15 million in today’s REINZ data release, compared to July last year. In July 2013, the median price was $560,000; in July 2018 it was $830,000; and in July 2020 it was $918,000.

AUCKLAND MARKET HOLDS STEADY

After witnessing negative annual median price growth in May, Auckland residential prices have increased 0.5% compared to June last year, from $1.15 million to $1.156 million in June 2022.

Auckland also saw a month-on-month increase of 2.8% — up from $1.125 million in May.

The number of sales across our local markets eased, seeing less volume compared to a year ago. The North Shore saw a 41.8% decrease in sales volume, 35.8% in the Northwest and 37.4% for Rodney.

The median days to sell has also increased year-on-year – the North Shore saw the median property take 44 days to sell – nine days longer than June last year. The Northwest had a ‘median days to sell’ of 42 days – 12 more than June 2021 – and 45 days for Rodney, also 12 days longer.

The median sale price decreased on the Northwest, however Rodney saw a healthy increase, up 10.8% to $1.33 million. The North Shore median increased to $1.342 million, up 1.3% year-on-year. The Northwest saw a decrease of 4% to $1.020 million.