Just when we thought we were heading for Summer – a deluge! It doesn’t seem to have deterred buyers however. This week’s Auctions have all been well attended and bid for. At this point in the year, many vendors are looking to the New Year. If that’s you, we would be keen to help you look at your options. Roll on sunshine!

Interesting to note the comments around how many homes Auckland actually needs. Our observation is that if there was general market acceptance of plaster homes, the shortage would greatly decrease. Of interest, we are starting to observe more purchasers taking onboard these homes and dealing with the issues. We also note many professionals taking on the re-clad and receiving positive reaction to the end product.

It would seem many buyers have a steely resolve to make a purchase decision pre-Christmas. For us, this continues to translate into a near perfect clearance rate at Auction. The question being asked “Is it too late?” “Should I wait until the New Year?” We say no – act now, there are still many unsatisfied buyers looking to make a decision for the start of the new school year.

What an incredible spell of weather! It seems to have put some heat in the market – we’ve never had so many brought forward Auctions. Without exception, this has translated into intense competition and great results for home owners. Thinking of selling – you’ll need to be quick, with just 4 effective selling weeks to Christmas.

As we enter the back straight to the Christmas deadline, we are seeing the seasonal increase in houses listed for sale. The number of buyers does not automatically increase pro-rata, consequently the pressure around the market is spread as buyers take their time digesting the options. This can also mean some sellers may need to adjust their expectations in the face of increased competition.

Well if The Block showed us anything; it’s that putting yourself in a position to enjoy competitive bidding can result is an exponential result. Sure it doesn’t happen all the time, but without selling by auction you will be forever wondering how much money you left on the table.

With the news around the economy generally positive and comment that unemployment in Auckland being at its lowest for 2 years, it’s not hard to understand why the housing market continues to march on in spite of the LVR restrictions. We’re busy and getting busier. Great to have a long weekend – enjoy!

Our observation is that the new LVR ‘ special limits’, while slowing the sale rate at the lower end of the market, have not dampened buyer enthusiasm to purchase. Our suspicion is that the current hiatus is a forerunner to a range of creative solutions that will no doubt be forthcoming and see first home buyers return in force.

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat". Theodore Roosevelt, 1910

What a week – An All Black win and surely a win to Team New Zealand. There’s much to be proud of and even more to look forward to with the return of the America’s Cup to the Viaduct – exciting times !! And yet another reason to have a piece of property in Auckland.

The Reserve Bank governor Graeme Wheeler has kept the official cash rate at 2.5% today, although he suggests it may rise sometime next year. In the meantime we continue to see the under supply of homes, relative to buyer numbers, producing excellent results, particularly at Auction

The traditional Spring listings season has yet to translate into the volumes we have seen in previous years. As a consequence, those homes currently for sale are receiving high interest resulting in one of the lowest lead times to sale for some years. On the other side of the ledger, buyer demand continues unabated – these two scenarios together are forcing sale prices onwards in the vendor’s favour.

Counting chickens before they hatch is fraught with disappointment – it is however, hard not to get excited about the prospect of an America’s Cup win and the impact that would have on our city and country. Regardless, there is no doubt that as a nation, we are enjoying increasing favour from international buyers.

The new restrictions around bank’s Loan To Value Ratio (LVR) will undoubtedly affect many first home buyers. The Reserve Bank has indicated approx. 30% of all bank lending is to those with less than 20% deposit. It will be interesting to see the extent to which this applies to buyers in Central Auckland.

The demand for homes in the areas we serviced over the last period, the sales made and the prices paid altogether have us more convinced that rather than witnessing a property bubble, Auckland is coming of age on the world stage. Increasingly, the mix of international buyers is changing perception of values - given the amenity values Auckland enjoys, this is only likely to increase. Go the All Blacks and Team NZ!

This ongoing mild weather suggests we may be heading towards an early Spring. With the start of the third school term we are seeing an increase in listings and predict a strong, competitive selling season leading up to Christmas. If you are contemplating making a change, our success rate at auction would suggest it’s a great time to sell.

We are often asked “what is the best time of year to sell?” In our opinion, the next period until the September school holidays is one of the most beneficial for home owners. Why? Because whilst the number of buyers in the market is unaffected by the season, home owners generally pick springtime, pre-Christmas to go to the market. Consequently, the same number of buyers is spread over a greater number of homes available.

As we approach the end of the mid-winter school holidays, as a company we can report one of the best Julys on record. We have particularly enjoyed an increase in activity and sales in the $2million - $4million plus range and note an increase in listing activity as we head towards Spring time

The CPI data out Tuesday showed inflation at 0.7%. This is the fourth consecutive quarter the result has been below the RBNZ target range of 1.3%. This information tends to further confirm interest rates are unlikely to rise before early to mid 2014.

We are seeing vendors committing to marketing programmes commencing after the current school holidays. This tends to be an industry trend we experience every year. The pre-launch work required has us busy and available. In short, we are keen to talk to you about selling your home and if you’re buying, we have some exciting new stock coming up.

Shortage of Homes

The seasonal shortage of homes for sale is having the effect of intensifying competition around some homes, resulting in premiums being achieved. This phenomenon has seen Auckland’s median house price once again on the rise. As a consequence, the Auction approach is a particularly effective tool in establishing today’s market value.

The locking in of Auckland’s Rail Loop represents a significant step forward in this city’s future, no doubt, further enhancing the desirability and future value of residential property in and around Auckland’s central areas.

It’s clear that the robust nature of the residential market will favour those looking to sell over this Winter period. Whilst some vendors presume Spring is the best time to sell, the reality is supply versus demand is the major factor in driving sale price. Right now supply, ie the number of homes available, is at a very low ebb, whilst the number of buyers standing in the market is particularly strong and not at all affected by the season.

For us as a company, May proved to be our best in 20 years of business. Alongside that, the median Auckland house price hit yet another high. Right now, we are experiencing the seasonal mid-winter shortage of listings, mostly fuelled by homeowners presuming that it’s a bad time of the year to sell. This has always been a fallacy – no more so than this year!

The old adage of “you don’t get a second chance at a first impression” is just so true in Real Estate marketing. Consequently, presentation is a big deal, not just before buyers view but particularly prior to photographs being taken. In essence, less is more. If you’re thinking of selling, I would be happy to have a walk through your home with you before you start the journey.

The constant barrage of media hype around ever increasing house prices is becoming quite confusing for many homeowners. The concept of establishing value by extrapolating a percentage premium on top of a home’s C.V. is fraught with problems and we note in some cases, costing vendors a sale of their home at the market’s value of it.

It’s interesting watching various ‘bidding tactics’ at Auction. Most often comments we hear are “I don’t want to start. I’ll just see where it goes or I’m not going to bid.” The reality is if you want a property, you’re going to do something sooner or later. Bidding allows you to see exactly what you’re dealing with there and then. If there’s no bid at Auction, a post Auction offer is required - often as one of several in a best ‘foot forward’ scenario, one generally not enjoyed by buyers. Best to bid.

Improving employment numbers, an IMF pat on the back and a low interest rate environment that seemingly has no end in sight are all contributing to a general perception that Auckland house prices will continue to firm. Generalisations can be confusing however, as the market’s reaction is very specific – large premiums on sale prices are not generally available.

Buyer intensity in the market continues unabated. Most home owners are enjoying high interest from buyers who are reacting quickly and competing hard.

School holidays are traditionally a slower time for us in Central Auckland. This year is however proving an exception. We are particularly encouraged by the increasing number of homeowners inviting us to appraise and list their homes for sale.

In response to this city’s on-going housing tension, the Auckland Council has produced “The Auckland City Unitary Plan (2013) draft”. This initiative will become Auckland’s planning rulebook, setting out how our city grows in the future. You can access this information on the council’s website. http://unitaryplan.aucklandcouncil.govt.nz/pages/xc.enquire/default.aspx

Fresh data out of the REINZ confirms what we continue to see in the marketplace. In the last year to March, the nation median house price rose $30,000 or 8.1% to a new high of $400,000. Ever more impressive was Auckland’s median gain of 13.5% to a new high of $562,000. Sitting on the side line may prove expensive.

Our success rate selling our Auction campaigns last month either before, on the day, or shortly after the event continues to sit above 90%. In fact, buyer demand in some situations has required auction day being brought forward, resulting in an early competitive sale being made for our vendor.

There’s change upon us. Daylight saving is about to end and that summertime feeling is definitely fading. Still we’ve had a dream run of weather and a residential market that continues to bask in sunshine. March proved to be another record month for us and we have no reason to believe a change of season will dampen buyer demand.

If attendance, bidding and sales under the hammer are any indication, the residential market is continuing on with a full head of steam. We are enjoying many days with 100% success. If you’re considering selling – it is hard to imagine a better time.

The Cyprus scenario gives further credence to the flight of capital worldwide in search of safe havens for investment. This is yet another factor that will increasingly drive the local property market and further exacerbate the shortage of supply in the Auckland area. We also note with interest some banks reducing mortgage rates this week.

The long spell of unbelievable weather seems appropriate, given the temperature of the residential market. They say it may rain this weekend. Our observation is that a change in the weather will have little effect on heat in the market, which continues to thrive on high interest rates, strong demand and shortage of supply. Consequently, Auckland’s median house prices are up 14.3%.

It will be interesting to see if the talk of the need for more deposit translates into a dampening of the housing market. This is clearly targeted at the lower end of the market.  One thing that will not change is the on going under supply of homes in the favoured parts of Auckland.

Well attended Auctions, crowded open homes and competitive bidding on most properties continue to be the hallmarks of the current market - the other is buyer frustration.  In many cases the ‘arguable’ market value is somewhat less than the money required to actually purchase at Auction.  The demand versus supply factor often driving the premium required for ownership.

A stroll through our website reveals an amazing range of houses throughout the Auckland area.  It’s an exciting time in the residential market that is enjoying real momentum.  If you’re considering selling, it’s arguably never been better!

Finally – the holidays are over, schools are back and the property market is in full swing.  In times past, the observation has been made that property only goes well when the share market is off the pace.  Interesting to see both markets thriving.  Stabilized interest rates and strong demand will continue to reward home owners.

Don’t know about you but the three week break seemed to go by too fast – but what a great Christmas.  We have returned to a much higher inventory of new listings than we anticipated and a sense of on-going momentum from the highs pre-Christmas.  With reports of an economy that is showing much more positive signs of recovery and an on-going low interest rate environment, our expectation is of another positive year for the residential Auckland market.