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

Sunday, 10 April 2016

Manager's Comments 11-4-16

The lead story in Saturday’s paper quoted “Home ownership still affordable in Taranaki”. That’s true. By comparison with our metropolitan centers, we are affordable. There is however quite stiff competition for buyers in the sub $400,000 bracket where investors compete with first and second homeowners, and where the affordability creates the most buyers. Multi offers are pretty much the norm at these levels. Over $400,000 the game changes as the price increases, buyers become increasingly scarce, and increasingly fussy. Price is no longer the only factor; choices are wider, competition less.
Sellers under $400,000 should seriously consider the advantages of auction and capitalize on the competition in the market. That will drive bidding and ensure you achieve the best cash offer available. Putting the buyers all in the same room will push the price to the best cash offer available in the market. You have the security of a reserve and will not undersell. Talk to our Auctioneer Phil Quinney, along with your agent, and discuss the process. It’s easier than you think.

John Christiansen

Sunday, 31 January 2016

Manager's Comments 1-2-16

Well, the first month of 2016 is already gone! Although January can be a mixed bag, the office has been busy. A good number of new listings are coming in (your competition), and some very good sales were made. We hope this is a good indicator of 2016. As more properties come onto the market so the competition increases. Buyers use one gauge when making offers. Comparative value. They know how the market is; they are immersed in it and usually inspect and consider 20-50 houses, more sometimes, before they make a serious bid on what they see as comparable value. Bang for buck. Get yourself in that region with your marketing. Put yourself into this market, don’t just be another advertisement. Very often when properties are competitively priced, the sale price is hydrauliced with the pressure of a multi offer, forcing serious contenders to their limit. That is the best way, other than Auction, to maximize your return. Get into this market and profit by serious and often multiple buyer interest.

John Christiansen

Sunday, 17 January 2016

Manager's Comments 18-1-16

Happy New Year. The weather is heating up. How about the real estate market in 2016? Time will tell of course, but it seems to have started well with good inquiry, still it’s far too early to make any judgment. There are some indicators that we will have a very steady market similar to last year. Ups and downs. The dairy prices will begin to bite, as will the recent redundancies across the energy sector. Both these sectors will rebound – but neither looks likely to have a big turn-around in the short term. The heat has come off the Auckland market, but it’s still almost unaffordable for those without some holding in that market already. Donald Trump is giving everyone the jitters. The stock markets are a bit shaky as well. However, we enjoy the cheapest mortgages in recent history, buyers are still about and active. We still enjoy fullish employment in New Plymouth, so easy borrowing is available to most. It will be a bit like our spring weather. Hot and cold, a mixed bag. The only certainty is that, as ever, buyers will demand the best comparative value available.

John Christiansen