The core values that determine a property’s worth don’t change. It’s all about location (suburb), a home’s character in relation to its neighbourhood (vernacular), aspect and position (think sunny and elevated with views), and construction and condition. If all these boxes get a tick, then a property will continue to compete favourably in the market place, and a premium price will be achieved.
Buyers have certainly become more discerning, and everything is slowing to a more manageable pace. In other words, we are approaching more ‘normal’ market conditions. Days on the market are stretching out a little bit, and more homes are being passed at auction day – only to be sold at a later date. But that’s a good thing, because it gives vendors a true indication of where the market is sitting at the time of sale.
We are also seeing more conditional sales, because buyers no longer need to take the same risks they used to, to secure a property. They are wisely now putting conditions into agreements.
On a positive note for our vendors, the market is still very active and very strong, especially in greater Ponsonby, because there remains an undersupply of properties and an increasing population, which adds up to more buyers than homes for sale – it’s just that those buyers are becoming more selective.
The seemingly astonishing figure of a 106% increase in total sales for March is tempered somewhat when you factor in the normal seasonal shift in buying habits. And that figure is dulled even more when you see that year-on-year sales numbers are down 15%. This figure is however consistent with the phase of consolidation many homeowners are currently entering.
With less homes available on the market, the demand, and hence the price of property will increase. That’s a fact. However, we suspect that the 11% increase from February to March is out of kilter with the true figure, and this is most likely due to an increase of properties sold in the $2m to $3m+ price brackets in the March period skewing the statistics.
Auctions continue to be the clear winner if you want your home sold by a set date. Our typical marketing campaigns are three weeks – 21 days – and consistent figures in the low twenties are proof of the success of homes sold by auction. After last months little anomaly, the days taken to sell by negotiation is back in the mid 40s, almost double that of by auction.
Our success rate at auctions continues to hit the high nineties in terms of percentage of homes sold, which is an outstanding statistic. Statistics, however, can sometimes be a little grey in their interpretation. This month’s figure of 95%, for example, includes all sales sold subsequent to auction night as well, including those properties negotiated post auction in subsequent days and weeks.
The compelling figure of just over three weeks to sell your home at auction – almost half that of by negotiation – has been consistent for the past year, with just a one or two day variance each month. And with the auction figures still outperforming the other two methods of sale, it’s easy to understand why 70% of vendors still choose to sell their property via auction.
This map gives you an overview of total sales and median price across the Greater Ponsonby area. Hover over the yellow dots for the statistics on each suburb. To view other suburbs we monitor (such as Titirangi), zoom out or drag the map.
The Rental Market
Much like this month’s sales statistics, the demand for rentals has cooled a little over the past month with tenants now becoming more discerning about the properties they choose to live in. That said the good properties that are clean, warm and dry are still achieving top dollar. This sends a clear message to all our landlords out there to ensure their properties meet the latest code regarding insulation and are presented well for tenants.
