For us it is very much 'business as usual' — just virtually. Please reach out if you would like to discuss and plan how we can appraise, list and market your property now to get ahead of the post-lockdown rush.
Looking at the latest figures from the REINZ, it appears the last two months have shown early indications that the rate of growth in the housing market is starting to ease. However, it is still too early to say whether this is the usual winter easing, or if the Government’s intervention in the market and its signalled changes to the OCR are starting to take effect, says Jen Baird, REINZ CEO. Despite this apparent softening, the housing market remains incredibly strong.
“Every region across New Zealand reached a record level in July, indicating the underlying value of property is holding strong and will likely do so for a few months yet,” says Baird. “Looking at Auckland, we’ve seen another record median price, the ninth record in the last 12 months — this growth is spread across the region, with six of the seven districts reaching new record median prices in July.”
Interestingly, sales volumes in July 2021 were almost identical to those in July 2020 — that’s compared to a 28% rise in the median house price during that same period. Heady stuff.
How do these latest statistics relate to what’s been happening in the suburbs we operate in? Sales numbers and median house prices have indeed softened in the past month. That said, year on year, our statistics on median prices mirror those released by the REINZ.
First home buyers are still very active in the Auckland market, despite the number of properties being sold under the $750,000 price mark continuing to decline, with only 14.9% being sold within this price band in July compared to 28.5% at the same time last year. Access to finance is an issue, particularly for this category of buyer, as properties are selling quickly, and approvals aren’t keeping up.
As we have read in the press, stand-out properties in good suburbs are selling well above their CVs. The other big winners in the real estate market currently are neighbours who have come together to pool their properties in the hope of attracting developers. It’s a great strategy if all the gods align. More about that in a future blog.
Auctions continue to account for the lion's share of properties sold by Ray White Damerell Group — and for good reason: They get the results our vendors are looking for. Just over two-thirds of the properties, we marketed in July were sold by auction, with 90% sold prior to, or on auction night. That's a telling statistic in any language, and it’s one that we are very proud of.