Posts tagged cloverpark
Market maintains the pace

So, how is the market?


February was a very buoyant month with the median price across New Zealand increasing by 14.3% to a new record median price of $640,000 - that's up from $560,000 in February 2019 making this the largest percentage increase in 53 months.

The Auckland market saw the biggest annual increase in sales volumes in 88 months with a 41.6% increase in the number of properties sold when compared to the same time last year. All seven districts in Auckland saw double-digit annual increases in sales volumes, the largest of which was Papakura District with an 83.6% annual increase. North Shore City saw a record median price of $1,155,000 and Waitakere City had a record equal median price of $830,000 and Manukau was up 2.2% to $850,000.

The median house prices in Auckland increased by 4.3% to $888,000 – up from $851,000 at the same time last year – the highest price in 35 months and the number of properties sold in February increased by 41.6% year-on-year – the highest number of residential properties sold in the month of February in 5 years.

Regions outside Auckland with the highest percentage increase in annual sales volumes during January were:
• Gisborne – the strongest February in 15 years
• Tasman – the highest for the month of February in 3 years
• Hawke’s Bay – the highest for the month of February in 4 years
• Bay of Plenty – the highest for the month of February in 4 years


Manukau’s statistics


Manukau's average sale price sits at $850,000 which is an increase of 2.2% compared to the same time last year. There were 379 sales in February 2020 compared to February 2019, there were 246 sales - that's an impressive increase of sales volume of 54.1%.


Market highlights


Auckland saw the median number of days to sell a property fall by 17 days from 56 to 39 year-on-year – the lowest days to sell for the month of February in 4 years.

Auckland had the second highest percentage of auctions in the country with 32.4% (637 properties) sold under the hammer, up from 21.4% (298 properties) in February 2019 – the highest percentage of auctions for Auckland in 27 months.


In summary


These statistics highlight that stock levels remain restrained, buyer interest remains strong, fueled by favourable market conditions such as low interest rates.

For two months in a row, every region in the country experienced annual median price increases, showing strong demand across the country. It’s highly likely we’ll see these price rises continue in March unless the economy takes a sudden hit from COVID-19. Whilst there is a strong awareness of the COVID-19, as yet we have seen little impact on the housing market.

Manukau market wrap

So how is the market?

There has been a notable ‘bounce in the step’ of the Manukau market with good properties commanding strong interest. Stories of multiple offers, competitive bidding & quick sales frequenting the real estate airwaves.

Sales volumes remain suppressed and we put this down to the subdued stock levels of properties. Whilst in September both the New Zealand & Auckland market saw volume increases from last year, the Manukau volumes remain at some of the lowest at 129 in September.

Manukau’s statistics

The Manukau median price has remained stable at $710,000 in September and average sale time sits at 30 days. Manukau is up by 1.5% last month compared to the month previous and has increased 7.5% this time 5 years ago.

Market highlights

Median house prices across New Zealand increased by 6.6% in September to a record high of $597,000, up from $560,000 in September 2018.

September was a strong month price wise, with record median prices recorded in four regions – Manawatu/Wanganui, Southland, Taranaki and Hawke’s Bay. New Zealand as a whole saw a record median price of $597,000. Overall, median prices rose in 13 out of 16 regions."

Auckland saw the first annual increase in median prices for the region in 11 months.

In summary

The pendulum of market forces is swinging favourably for the real estate market with low interest rates, abolished capital gains tax, housing shortage, and increased buyer confidence. There is also growing acceptance of recent changes to legislation with the Overseas Investment Act, Brightline Test change, Anti-money laundering & Residential Tenancies Act.

There are always markets within markets but all in all, a solid start to Spring, key indicators pointing towards a stable market with momentum building despite the lack of availability of quality listings restricting sales volumes. The year on year median sale price difference has risen to realistic levels.

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Shannon's Manukau market wrap

Manukau Market Wrap

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So how is the market?

Things are looking good; volume is still down, but prices are stable and clearance rates have significantly improved. We have definitely seen a resurgence in activity this past month in Manukau. Stock levels remain low and demand appears to be stronger than supply. So, have there been more buyers, or just less stock? It is a combination of both, and there are a number of positive contributing factors at play.

Manukau’s statistics

There were 370 sales in August 2019. When we compare this to August 2018, the number sat at 391 — so, in terms of sale volume, Manukau performed pretty well.

The average sale time sits at 47 days with an average sale price of $770,000 (although this number is down from $860,000 compared to the same time last year).

If we compare these figures to those across New Zealand in August, the numbers decrease by 6.1% from the same time last year (5,959 homes sold, down from 6,346) — the lowest level of sales for 7 months. Additionally, we’ve had 3,624 fewer new listings than at the same time this year.

With limited choice in many parts of the country for new listings, I would say that people are waiting before putting their homes on the market closer to spring or summer (which is traditionally the case).

However, what we are finding is that listings which have come in before spring are dealing with less competition. The past three sales I made all sold within the first week of open homes and either above CV or for a record sale price on that street. Buyers are definitely out and ready to buy, particularly first home buyers. If your home has that unique factor — i.e. a home with an income or a sub-dividable section — these are also always popular.

Market highlights

The removal of Capital Gains Tax from conversation and the reduction of the Official Cash Rate (leading to record low interest rates) has led to more people buying, more investors back in the market and generally more confidence overall.

Prices going up in the regions — in the more desirable larger regional cities, the price gap is no longer as big as it once was. This could be interpreted as more people deciding to just stay and buy in Auckland.

Investors who had been holding off from engaging the market are not getting anything for their money in the bank. Confidence that the Auckland market isn’t going to tank is luring them back in.

First home buyers are in force. The past six months has probably been the best time in years for them to buy given the attractive interest rates. The recent commentary from Tony Alexander, BNZ, suggests fixing for one year in anticipation of further rate falls to come.

Immigration is still strong and the market is also looking good in Sydney and Melbourne across the ditch.

In summary

A winter that started with some pretty average figures has moved on to spring with everybody feeling a lot more confident about the market moving forward. Whether we see a dramatic improvement in prices is yet to be determined, however, right now is definitely the best it has been during the balanced market (post 2016).