Sales volumes increase

With school holidays ending, it’s obvious homeowners and buyers alike have their eyes on Christmas being not far away and are making decisions. The number of homes coming on the market is increasing – buyers are responding aggressively. For us, sales are on the increase.

Positive sentiment

The current now word is recovery. It seems almost every indicator is positive – even the All Black’s are in recovery mode! As predicted, the number of homes being listed is on the increase – the selection for buyers is increasing, albeit slowly. We notice buyers who have been looking for some time are market sharp and are now acting quickly.

School Holidays

We’re in school holiday mode, activity is high, open home numbers are strong, sales activity is steady. We note the talk of recovery generally is having a bullish effect on vendors. This may see many homes remain unsold.

Recovery Continues

This time last year some “experts” were predicting a 30% down turn in the housing market. Currently we hear concerns from the Reserve Bank and others about the current strength of the housing market. Some even suggesting we are back to double digit annual growth in house values. To summarise – no one knows – probably pays to get on with your life.

Confidence Improving

This week’s unchanged OCR rate has ensured the current low mortgage rate environment. This will have a confirming effect on the attitude of buyers who are out in force competing hard for a home. Overall, confidence surveys, alongside with the rise in the number of jobs being advertised, together point to a slowly improving
market place.

Spring recovery

Having produced one of our strongest ever August results, I can report Spring has ushered in an energy in the housing market that thankfully bares no resemblance to our last Spring. The consensus seems to be that recovery is on us, and with it an improving housing market.

Spring is in the air

Spring is definitely in the air. The days are longer and warmer. Buyers are out, sales are being made. We had a hat trick of Auctions sell last week under the hammer, it has been a great week for our team, to top it all off the All Blacks pulled off a fantastic win!

Ongoing housing recovery

It appears there is a begrudging acceptance amongst observers of our “sport” that the factual data supports an ongoing recovery in the housing market – albeit gradually. The BNZ economist confirms our experience that there is a “structural short supply” of stock. We are encouraged by the relatively quick results most vendors are experiencing.

Demand remains firm

While there continues to be notes of caution around the economy, we observe an increasing positive vibe around the marketplace. We’ve read various commentators reason why there is more downside to come, the thing no one is talking about is supply and demand. The reality is in the areas we serve, demand is firm. Until that changes significantly, values will remain intact.

'Strong signs of recovery'

Fascinating to see how quickly the headlines change. How fickle we all are. Just months ago the press and punters were seeing ongoing downside in the residential market. This morning’s Herald editorial now warns of the perils of an improving housing market. Our summary – in uncertain times, particularly in a low interest rate environment, the smart money heads for the security of bricks and mortar.

Think of selling, what are you waiting for?

Those homeowners going to the market now are winning. While some homeowners are waiting to list in spring – buyers aren’t waiting for anything.

We see something of this phenomenon every year, but it’s particularly exaggerated right now. View Alistair Helm's latest property report from RealEstate.co.nz here.

Things are looking UP

We note the quarterly Massey University Home Affordability report shows a 17.7% improvement over the year to May 2009.

This report takes into account house prices and average weekly wages. Put this alongside the latest data released by Statistics New Zealand showing long term migration continuing to grow and we find it hard to agree with any prognosis of a further significant demise in the residential market around the areas we serve.

The Real Story

What’s the market like?

This is the question of the moment. We, like you, read all the statistics and hear the commentaries and read the papers. Most of it is still quite negative.

In reality, for the areas we serve, we are experiencing high demand, particularly in the $500,000 to $1,500,000 range. Buyers are responding quickly, in many cases there is intense competition.

Is this a good time to sell?

Yes – it is all about supply and demand, not the seasonal time of the year. You’re better off to have buyers out rather than flowers out.

Is the market likely to fall further?

We would be surprised to see much more downside. Again because of supply and demand, a relatively low interest rate environment (even in the medium term) and positive net migration.

In short, property is affordable and Auckland is a great place to live. A fact that is becoming increasingly agreed upon by the world at large.

Safe bet

Who’s betting on the All Blacks? Probably a safer bet is the response you’re likely to get if you put your house on the market. Unlike last week’s All Black result – you will be in for a pleasant surprise. We have witnessed some extreme competition this week, such is the shortage of property currently for sale.

Interest rates stabilised

Well it looks like the downward slide in interest rates is officially over with the confirmation today of no change in the O.C.R. It seems to us buyers pre-empted this likelihood and have been moving aggressively over the last months. With net immigration on the rise and interest rates continuing to be at affordable levels, we would be surprised to see prices fall significantly, if at all, throughout the areas we serve anyway - amenity values are too strong and don’t change.

Shortage of homes for sale

May proved to be a record month for us and it’s continuing. Don’t believe everything you read about the property market – it’s not that bad!

We have a seasonal shortage of available homes compounded by vendor apprehension. Right now, fortune will favour the brave. List now – there are many buyers waiting.

Housing again flavour of month

Doesn’t it feel great to have a long weekend to look forward to?

The positive vibe around residential property continues. Read the latest Herald article here The budget was necessarily austere, overall in spite of the difficulties there is a general consensus that things are on the improve.

The real word on the street:

The Sunday papers talked depressed prices and this week’s Herald article about the massive overall drop in the Nation’s value of residential real estate has many homeowners erroneously conclude it’s a bad time to be on the market.

We are seeing an overall increase in activity, sales and some examples of premium prices being achieved.

Thinking of selling? Please allow us to explain what is actually happening.

More demand than supply

We have experienced intense competitive bidding at all of this week’s auctions, plus a sale rate that continues at pace.

We can’t help but feel buyers are in front of the commentators and have reacted to a bottoming out, about 6-8 weeks ago.

Home owners, it seems, are under the misguided view that it’s a bad time to sell – consequently demand is outstripping supply.

Winter's warming up

It’s getting colder and winter is definitely upon us. No sign however of the housing market going out in sympathy. If anything, it feels market sentiment is warming.

We note the average house price in Auckland gained 2% last month. April was another improved month for us – we currently have a shortage of homes.

It’s actually a better time to sell than it’s been for
many months.

OCR hits new low

The Reserve Bank confirmed our prediction and has once again adjusted the OCR rate downwards to a new low of 2.5%.

While the outlook painted in the banks statement is bearish, our opinion is that this confirming of a low interest rate environment will continue to have buyers return to the market.

April for us has been another very good month with an increasing number of homes being sold in competition.

Strong market response continues

Market response continues to be strong, sales volumes are steady, buyers clearly seeing opportunity with realistic vendors meeting the market and buyers increasingly understanding this could be as good as it gets. To add fuel to the fire, expectations are that the OCR will be cut another 0.5% next week.

Imitation - The highest form of flattery.

With school holidays on us we have had time to reflect on Barfoot & Thompson’s recent decision to match our fee structure and this week’s decision by L J Hooker to copy our advertising layout (view it here page 17) notice any similarities? These moves encourage us and confirm what our market place consistently tells us; namely the package we offer vendors is compelling and comes with real added value.

A well earned break

We can’t recall a more dramatic start to a year – we’ve had to cope with a range of scenarios which have had us all stretched at various levels. Consequently the Easter break feels particularly welcome. Remember the reason for the season – drive carefully – relax and enjoy.

New financial year.

It’s amazing how quick another financial year has clicked by. And what a year. It has ended on a much higher note, for which we are thankful. Albeit predictions remain muted, our expectation is that as long as Mr Bollard remains committed to a low interest rate environment, we expect sales volumes to produce a better year. It remains to be seen how values are affected.

Big March

As we approach the end of the financial year we are pleased to report one of our best ever sales months. We put this down to a lower interest rate environment and a period of time where the news around property locally and the economy of the world has been somewhat more hopeful.

Similarly we note some banks have increased their longer term rates, this is no doubt providing encouragement for buyers to act.

Renter's looking to buy

The latest drop of .5% in the OCR signals a bottoming out of interest rates. It appears to us buyers are positioning themselves to purchase as we observe a steady increase in the number of people at open homes, offers being made and sales made. The other interesting observation is that rental inquiries are down. There is no doubt renters are using a calculator to see what their rental money translates to as a mortgage.

Things are looking up

Open home numbers are up and steady, the number of offers we are fielding is on the increase, there is no sign of an increase in property values, but there are definite signs that buyers are on the look out and are prepared to commit.

We would expect this trend to continue particularly in light of another widely anticipated drop in the Official Cash Rate next week.

When's the right time to buy

The Herald headline on Thursday 26 February 2009 confirmed what we had been saying since Christmas.

Now is the time to buy a house if you have got a job and the money, ignore the crisis and start looking! We have experienced several sales recently where properties have been subject to multiple offers after the first weekend of open homes. In one situation the property received 65 inspections and 5 offers.

This week’s headlines should continue the changing of the tide in market sentiment as buyers make the most of what we see as a rare window of opportunity.

Australian bush fires

The most outstanding events of the week must be the devastation of the fires in Victoria. Our thoughts and prayers are surely with the affected families.

Meantime, activity in the residential market continues in an upbeat fashion. We note, in particular, increased inquiry from overseas buyers, mostly ex-pat Kiwis who are making the most of the softer values combined with an attractive exchange rate.

3.5%

The latest mega drop in the OCR rate to an all time low of 3.5% is clearly good news for the residential market. It will be interesting to see how quickly this rate flows to retail rates. Certainly buyers are pre-empting lower rates – the phones are ringing.

On another note, isn’t it great to have International Yachting back on the harbour! Make sure you find a vantage point to take it all in this weekend!

Silver lining?

Happy New Year! Welcome back – despite the barrage of negative press around the economy, we have come back to a property market which looks to have a silver lining. With interest rates falling like a stone, the share market still looking vulnerable, the question is what do you do with your money. Already many are saying I’ll buy a rental property. Similarly, softer asking prices and lower interest rates are making the decision to purchase particularly ‘do-able’. In short, inquiry is up – we’re selling houses. The market place has absorbed the sky falling news and is moving on.

2008/2009

Last year was truly tumultuous for the real estate industry.

The weekly and sometimes daily news of increasing world wide financial fall out, has seen buyers hold back. Consequently, the number of transactions has been down significantly. The current offset to something of a stalled market has been the progressive lowering of the OCR. The flow on to lower retail mortgage rates alongside softer achieved prices is having an affect on affordability.

Latest reports indicate that as at today affordability is better than it has been for 5 years.

Right now it feels as though the market may be transitioning as buyers re-enter the market. These include investors and those assessing the cost of rental versus borrowing. Certainly for us, we are currently fielding more interest and offers than we have been for some time and our expectation is for this to continue to build all year, as buyers become more confident.

While activity may increase, we believe it may take some time before we see the demand required to fuel increased achieved sale prices.