Sunday, 9 October 2016

Manager's Comments 27-9-16

At last… daylight saving. Well, we have daylight, hopefully we will have sun soon. This is the time of year we are much more able to show property after work, and even run twilight open homes. Some of our agents have already run a couple of twilight open homes recently to great success. It’s an option to discuss with your agent. Head out for a BBQ or a walk along the foreshore and let your agent do what they do best, talk to buyers in your house. 

John Christiansen

Wednesday, 14 September 2016

Manager's Comments 15-9-16

The spring flush is all around. Magnolias, bulbs and houses. Yes houses, they are coming to the market in numbers not seen for some time. This is expected, and is pretty much an annual occurrence. The upshot is that your competition is increasing at a faster rate, more choices for the buyers to access and compare. The real estate market is very pure and driven almost entirely by supply and demand. The demand is the same. The supply is increasing, and so therefore your competition. Take this into account when you get an offer….

John Christiansen

Monday, 29 August 2016

Manager's Comments 30-8-16

September 1st. Spring, and fine weather. Well technically, but I won’t promise fine weather. What we do have is longer days and therefore more opportunity to showcase property after 5pm. That is always a good thing; along with new growth and some spring flowers all of which opens people up a bit, gets the smiles on faces and generally makes life easier.

There is another thing that can make property sellers lives easier, especially in a market like ours with lots of buyers and a shortage of stock.

I would like you to really consider Auction. Ask your agent to book a no obligation discussion with our Auctioneer Phil Quinney as soon as possible, Phil can explain the benefits and the process just to make sure you’re right up to scratch with how it can work to your advantage in this market which is tailor-made for competition. No hard sell, just information. We really believe Auction can achieve the best possible result in most circumstances, especially the present market circumstances.

John Christiansen

Wednesday, 17 August 2016

Manager's Comments 16-8-16

July sales figures in New Plymouth City show a very flat market. The median price slipped a meagre $4000 to $369,500 indicating very little change in the values of the 86 properties sold. We have extremely low interest rates and prices on the higher side of last year, both expected scenarios. However, there is a perception the massive Auckland market is running out of steam, which may be making some buyers nervous. This quote from the ASB Bank housing confidence report today “Fewer people think now is a good time to buy according to the latest ASB Housing Confidence Survey. The sharp drop in sentiment is not much of a surprise when expectations for higher house prices, as well as higher interest rates, picked up over the quarter. Sentiment has fallen across the country as respondents appear to be wary about possible increases in debt servicing costs when house prices are already considered high”.
The New Plymouth market has been very subdued in terms of price rises over a period where Auckland values have spiralled to unprecedented levels. (The median price in greater Auckland is $825,000. In the city over a million dollars). If there is a correction in Auckland it won’t impact severely in New Plymouth, but it will make buyers very nervous and has the potential to slow our local market significantly for a period. Give this some thought and consider the consequences when you receive an offer. A bird in the hand may be worth looking very hard at.

John Christiansen

Monday, 18 July 2016

Manager's Comments 18-7-16

A lot of recent talk about the flying Auckland market seems to be affecting some seller’s expectations. Unfortunately we are not in Auckland, nor are we in the influenced areas of North Waikato, Coromandel or Bay of Plenty, where there is some rub off with Auckland buyers. There is a little local growth, but our property market is still curtailed by the low and flat dairy prices and the exodus of energy workers from the region. We have had a couple of Auckland buyers, a few expats returning to New Plymouth, but they don’t outweigh the numbers we have lost. Nor do they change the local economic drivers, dairy and energy, both in the doldrums.
We do have a shortage of listings in New Plymouth and we do still have buyers. However until we experience that fundamental shift in dairy or oil prices, we remain stifled by real buyer confidence.

John Christiansen

Monday, 20 June 2016

Manager's Comments 20-6-2016

New Plymouth's city median price is up to $406,000 in May. Two months ago in March that figure was $357,050. How does the median price go up 13.7% in 60 days? Well, it doesn’t. We are talking about two groups of houses selling.
In March, of the 88 properties sold 30 were priced between $300,000-$374,000, and 30 between $375,000-$599,000. Small numbers in other price bands either side, which was inconsequential.                         
In May a lot more higher value properties sold. Only 27 in the range of $300,000-$374,000, but 46 in the $37,0005-$599,000 bracket, 40 of those over $400,000, (only 21 in March).
There is always this variation in the type, location and value of houses sold month to month. These variations distort the monthly median prices both up and down month by month. The only true value in these monthly sales figures is identifying trends over time. We may have a trend developing, but maybe not. Another 3-6 months will tell us. What we do know is that many properties are experiencing multiple offers when they are priced and marketed correctly.
If your property is not receiving that sort of attention, we need to discuss a change to these factors and get your property ‘in the zone’ where buyers are active.

John Christiansen

Sunday, 8 May 2016

Manager's Comments 09-05-16

I have just been in Northern Queensland for a week. A completely different climate and a completely different real estate market. Lots of property available, but a somewhat depressed economic climate, lots of sellers, few buyers. I remember this happening in New Plymouth, not so long ago really. The market can change quickly. I don't know when that might happen here, but it will in time. The message I got was do what you want to do now, don't wait for that one off buyer, take market value and move ahead with plans while it's all quite easy in comparison to many other places, which normally would not be seen as slow or a bit depressed. Our buyers are offering value. No more, no less. That will change in time. Work in the now and move ahead without regrets.

John Christiansen