Emerging with momentum after the typically subdued holiday period, results from our auctions across the country show a real mixed bag of interest, says Bayleys national residential manager Daniel Coulson.
Sale volumes have lifted and prices remain consistent according to the latest release of sales statistics from the Real Estate Institute of New Zealand (REINZ), which have shown that the national median sale price have risen $5,000 from January to $495,000 in a charge led by the regions.
“Results from our Auckland auctions this month paint an interesting picture for both sides of the market as median sale prices continue to increase, yet sale volumes have dropped by 14 percent year-on-year” says Mr Coulson.
“This is thanks in-part to a surge in inventory across the region which has seen the number of properties for sale increase by 20 percent compared with February 2016.
“With more options on the market, buyers in Auckland can afford to be more discerning, however interest rates are creeping slowly higher and tightened lending regulations have meant that financial institutions are more careful who they are lending to” he adds.
Interestingly supply across the rest of the country has not received the same post-holiday replenishment, and while the days spent on the market eased in Auckland to 43 (a week longer than February 2016), the national average sits at 39 - showing that buyer appetite across the country remains robust.
The rise of ‘million-dollar home’ sales have continued this month, again showing the largest increase in sale volumes and again we can see the effect of investor withdrawal from the market, as the number of dwellings sold for under $600,000 has declined by 1,081 year-on-year.
“Buyers are looking for value-added property in the market at the moment, be it energy efficient heating systems, sustainable water measures or supplementary accommodation – a property on Waiheke Island we auctioned recently caused quite a stir as it came complete with Mongolian-style yurt” laughs Mr Coulson.
The forecast for March looks to stay largely in line with results from February, with sale volumes improving steadily across the country as the last of the summer stragglers wake up and re-enter the market.
“Our advice to sellers during this quarter is to work closely with their sales professional who will be able to guide the presentation of their property – and ensure it stands out amongst your local market-place.”