Real Estate Market Report - Winter 2017
by Adam Smith
The housing market seems to have gone into an extended hibernation over winter. We’ve cast our expert eye over the latest property statistics to give you some valuable insights. Our tips for those looking to sell or buy a house are an essential read.
What’s happening out there?
While the cooler months are traditionally a slower time of year for real estate, there’s been a definite shift in the property market.
A number of factors are at play, including:
- Fewer sales as tougher lending conditions continue to bite
- Sellers still expecting boom sales prices, while buyers are being more cautious
- Houses taking longer to sell – 35 days in July 2017, up 4 days from July 2016
- Both sellers and buyers are taking a ‘wait and see’ approach, due to the approaching election
Those buyers able to obtain pre-approval are in a strong position and are prepared to wait it out to find their perfect property – at the right price.
Our tips for when selling a house
- Meet the market. Buyers are being more cautious, so it’s crucial that your asking price when selling a house is realistic for the current real estate market. Get some wise advice.
- Avoid the auction process altogether. Selling a property by negotiation, with a fixed (and realistic) asking price, is the best strategy.
- Consider renting. The rental market is buoyant and quality properties are commanding premium rates. Using a professional property management company could make this a stress-free process.
Our tips when buying a house
- Get informed. If you’re struggling to get a mortgage, don’t get discouraged. Talking with a mortgage broker could be a great starting point. You could also consider other options, such as using a guarantor.
- Don’t skip the paperwork. Make sure you add in professional meth testing when doing your due diligence on a property. Meth contamination is a growing issue across all housing types and locations.
- Buying in Christchurch? Look at the real estate opportunities where new infrastructure projects are planned.
How the real estate market is performing in your area
Auckland – North Shore
Fewer listings and a shortage of cashed up buyers are some of the issues impacting Auckland real estate. When it comes to the North Shore, the latest REINZ statistics show the median price dropped by 4.2 percent and total sales decreased by 31.1 percent over the year to July 2017.
Wellington
Property prices in Wellington look like they will soon start following the other major centres by softening over the coming months. Both the sales volume and median price eased between June and July 2017. The median price for the Wellington region is now $490,000.
The rental market, on the other hand, remains hot with the ongoing shortage of rental stock.
Christchurch
Christchurch has its own unique real estate market as the rebuild continues. The median price and number of sales has also taken a bit of a hit, compared to this time last month and last year.
We’re seeing the outer suburbs being impacted by a temporary oversupply of housing due to large developments springing up as the re-build continues.
If you want some more expert insights about the Auckland, Wellington and Christchurch real estate markets, get in touch with us.
