It’s a truism to say that the real estate industry is prone to marketing hype and exaggeration. There are, however, some irrefutable facts, and the recent sales figures coming out of Greater Ponsonby clearly display one in particular.
Sales volumes, month on month and year on year are dropping. Drops of 21%, when comparing July 2018 with the previous month, and 17% when compared with July 2017, tell a very clear story.
Times like these require vendors to take much more care when selecting, not only an individual salesperson to represent their home, but also to look at the team supporting that individual and the overall market share that team has in the neighbourhood.
Why is market share important to a vendor?
The more homes a team represents, the more buyers they meet. These buyers build a trusting relationship with individual salespeople, and that greatly increases the probability of working with a slightly apprehensive buyer to elicit an offer.
The vendor will also benefit from increased marketing experience and have better resources at their disposal. It makes total sense that the more homes a company markets, the more real market knowledge their team builds up. This knowledge improves the quality of advice the home seller gets with regards to the methods of achieving the best results in the current market.
Back to this month’s statistics…
Normally, if sales volumes decrease, so the median price follows. However, because of the limited number of homes in Greater Ponsonby, the desirability of the area, and the uniformity of the housing stock, the median price remains very strong. Evidence of this is the steady median price, month on month, and the 3% increase compared to July 2017.
Deeper analysis reveals that almost 50% of sales in July were in the $1m-$1.5m+ bracket, which is not surprising, as the majority of homes are villas or bungalows, and it’s difficult to buy even ‘knock down’ homes for less.
In the $3m+ range, the steady figure of 12%, month on month, probably indicates that the upper bracket of buyers are less affected by economic influences.