It is with heavy hearts that we pay tribute to the Muslim community following the recent despicable acts of violence against them, their families and their friends in Christchurch. It is difficult to comprehend that the heinous acts of violence of one deranged person can create grief of this magnitude, and tarnish the image of our ‘safe country’.  Words alone cannot express the sympathy of your fellow New Zealanders and we believe that more tangible and ongoing support will be forthcoming to make your future lives in NZ safer and satisfying. The management and staff of Tommy’s Real Estate Ltd would like to take this opportunity to add our deepest sympathy to all those who this tragedy has impacted on in some form or another.

Working as we do in a multi-cultured society, Tommy’s staff is in daily contact with people from all walks of life, all ethnicities and from an array of overseas destinations they once called home. These people are here to make a new life for themselves and their families, and in most instances are anxious to call New Zealand ‘home’. We see it as our responsibility to welcome these people and to do all things possible to assist them with their housing requirements, which is an integral part of any family making a new start in a new location. Our doors will always be open irrespective of whether you are buying, selling, renting or simply seeking advice on housing options.

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TOMMY’S CONTRIBUTION TO THE CITY

Both as a company and through the generosity of individual agents, Tommy’s support a number of local charities, sporting bodies and educational organisations. The company’s main beneficiary for 2019 is Wellington Free Ambulance with our company projecting a $75,000 contribution to assist in maintaining this wonderful free ambulance service. Tommy’s staff recently held a successful golf tournament which resulted in a profit of around $20,000 for funding Given For You and providing swimming gear and lessons for underprivileged children. Our sincere thanks are extended to all the other sponsors who assisted in making this a successful fundraiser and to all those who took part and contributed generously to a worthwhile Wellington cause.

MARKET COMMENT

It has been some time since the supply of homes for sale in Wellington has topped the 700 mark as it is at present, and this is having some impact on the market. In more recent times the housing stock has generally sat in the 300 to 400 range, so the increase is significant. This is great news of course, for potential home buyers giving them a considerably larger selection of property to choose from. Conversely, it has created more competition for home sellers.

It is crucial that home sellers get the pricing of their homes right from the outset as overpriced homes tend to languish on the market and not sell. Buyers generally have access to an array of market data these days and, with the guidance of an experienced agent and from their own observations, they quickly form their own opinion as to the value of a particular property. Whilst the market is active it is important to advertise at a level that is realistic and will attract attention yet still allow for a premium price to be obtained in a competitive situation driven by an experienced negotiator. Take care when using Government Valuations (GVs) as a guide as these can vary considerably from true market value.

BNZ chief economist Tony Alexander commented recently “The Wellington housing market is strong and steady if not getting stronger. Regions like Wellington, Hawke’s Bay and Nelson will continue to thrive but others”, and he cites Wairarapa, Manawatu-Wanganui and Marlborough, “have peaked and are easing.”

INSURANCE AVAILABILITY

As a consequence of the hefty insurance payments resulting from the Christchurch and Kaikoura earthquakes, a significant increase in premiums for housing insurance cover was inevitable. This has been taken on the chin by property owners, but what has come as a surprise is the reluctance of some major insurers to provide cover for Wellington homeowners because of the potential earthquake risks we face in the capital. An inability to get adequate and cost-effective cover has financing implications and could also impact on property values in time.

Tommy’s advice to home buyers is to ensure they have insurance cover confirmed before committing to a property transaction. This can be done prior to purchasing or by making the availability of insurance a condition of their Sale and Purchase Agreement; a provision that will protect their interests without seriously jeopardizing their negotiating position.

We look forward to assisting home buyers and sellers with their residential property transactions in 2019.

2 thoughts on “Wellington Market Update & Insurance Availability

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