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- May 2011 - Market Moves into Winter Mode
- July 2011 - Market Treads Water
- April 2011 - Now is the Time - Economists
- March 2011 - Lower Interest Rates Set To Help Visi
- February 2011 - More Demand as Market Warms Up
- January 2011 - Busy Start to the Year with More Stock
- December 2010 - September 2010 Investment News
- June 2011 - Good Opportunity to Sell
- August 2011 - Housing Stock in Short Supply
- September 2011 - More Sunshine, More Stock
- October 2011 - Signs of More Market Activity
- November 2011 - More Strength in Market
- December 2011 - Is Santa Finally Coming Back
- Open Homes This Week
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October 2011 - Signs of More Market Activity
Market Comment
As always at this time of the year activity in the market begins to increase with the traditional spring flush of property coming onto the market. Sales have been reasonably subdued for the past couple of months and it will be interesting to see how this affects the current balance we have in the marketplace.
Days to Sell
Nationwide, the median days to sell improved by two days from 39 days in August to 37 days in September. The days to sell stood at 43 days in September 2010. Auckland again recorded the shortest days to sell at 32 days, followed by Otago and Southland at 36 days, with Wellington and Canterbury/Westland next with 38 days. Taranaki and Central Otago Lakes recorded the longest number of days to sell at 79 days followed by Northland at 56 days. "We're seeing a very interesting market with listings improving though still reported astight, plenty of buyer interest but only on a very rational basis - there is no appetite on the part of buyers to overpay or rush to purchase," said O'Sullivan.
Main Urban Areas Commentary
Wellington
QV’s Residential Price Index for September shows that property values in the Wellington region are 2.0% lower than the same time last year. Values are looking to flatten. Mr Kerry Buckeridge of QV Valuations said; “The last 2-3 months have seen the Wellington market levelling off. For the moment property prices appear to be steady after a sustained period of decline in both price and sales.”
Looking Ahead
House prices are just 5% below the November 2007 peak and are set to rise 3% this and next year, according to JP Morgan economist Helen Kevans. Kevans cited the "chronic" shortage of housing supply as the main driver for the rise, offsetting weaker immigration, increased household austerity and higher interest rates.
BNZ REINZ Survey
The latest BNZ-REINZ Residential Market Survey of real estate agents found the housing market is improving but with a small ease in the strength of some indicators in comparison with recent months.The survey found a net 3% of responding agents saying they are seeing fewer investors in the market, however there were large variations on the reported amount of investor interest across the country.
What are the top suburbs in the region nearest you?
QV.co.nz like to keep track of a whole range of stats and figures so to keep an eye on the property market in New Zealand - and one particularly interesting statistic that tends to get asked for a lot, is what is the top suburb in a particular region. So, here it is.
Of Interest
The total value of Auckland’s real estate is $354 billion, according to the first Auckland Council revaluation of 516,000 properties – the largest revaluation project ever undertaken in New Zealand.
Mortgagee Sales
Mortgagee sales fell 18% in the first six months of 2011 from a year earlier, while remaining at elevated levels and with more single property owners evident, according to Terralink. There were 1008 forced sales between January and June, down from 1229 in the same period of 2010, the property and land data company said in a statement. Mortgagee sales have been above 1000 in the first half of the past three years, with the number "four to five times higher than pre-recession years," according to Terralink managing director Mike Donald. The number of sales jumped in 2009, when the economy pulled out of recession after contracting for five quarters.
Rental Market
National rental supply was down 7% on a year ago in the September quarter, driven by significant drops in the number of properties listed in Auckland, Wellington and Christchurch, Trade Me says. Head of Trade Me Property, Brendon Skipper, said the fall in the number of properties listed for rent had been led by major metropolitan areas with Auckland down 13%, Christchurch down 27%, and Wellington down 30%.
Interest Rates
Reserve Bank governor Alan Bollard spooked financial markets slightly into thinking he may raise interest rates sooner than they had anticipated although, as expected, he's left rates unchanged for now. Bollard left his official cash rate (OCR) unchanged at its record low 2.50% “for now.” Dominick Stephens, chief economist at Westpac, says although Bollard acknowledged the weakness in recentinflation and growth data and declining business confidence, he didn't change his stance. “There was no overt change in how the Reserve Bank sees the outlook for the economy or monetary policy,” Stephens says. “The market's read that as the Reserve Bank saying: I see the weaker data but I'm not going to change my plan,” he says.
