Today is Sunday, 24 February 2019
Our Take on the Market
A new year with new rules.
Typically when the schools go back in the new year the real estate market kicks off. So far this year, and despite a lot of negativity in the press, we have found that to be the case with good activity levels. The REINZ sales statistics showed that 2018 did finish with lower than normal sales numbers in December and for our area – Eastern Beaches – there was a drop in the median sale price. This theme was across the nation with the lowest number of sales nationally for a December in 7 years. As I have said before making big predictions from one months results, be they good or bad, is dangerous ground. Real estate has been and always will be a long term game and monthly statistics over a period show the trends. So in saying that here are the numbers for December ’18.
For our area the median price dropped back to just under the $1million mark to $998,000. This is down from Novembers $1,050,000 and down again from our record high struck in October of $1,155,000. Granted this looks like a considerable drop but in September it was $1,030,000 so monthly spikes aside the movement is not so dramatic. There were 96 sales in the area in December – 42 less than December 2017 and the second lowest month for the year after January’s 73. The days to sell were 41 – about the average for the year. Currently realestate.co.nz is showing 419 properties for sale in the area – down approximately 100 properties from 2 months ago.
For Auckland overall the median was $862,000, compare this to Novembers $860,000, December 2017’s $860,000 and December 2016’s $855,000 – a trend here of pretty much a static market over the past 2 years. Sales numbers were down 24% from last December – in fact the lowest number of sales in Auckland for a December for 10 years – remembering back that 2008 was the trough of the last property cycle.
Nationally the median for December was $560,000 – down from Novembers $579,000 but up slightly from December 2017’s $551,750. There were 5,330 sales, 13% less than December 2017’s 6,117. The number of properties available for sale nationally decreased by -1.8% from 24,610 to 24,158 – a decrease of 452 properties compared to 12 months ago
Keep an eye on the column as we get through the first few months of the year, particularly the volume of sales will be the interesting number as to how the market is tracking. I expect to see a continuing fluctuation in the median sale price.
As of 1 January this year Real Estate Agents in NZ have to comply with the anti-money laundering legislations (AML) so if you are listing a property to sell be prepared for your agent to ask for identification information that confirms who you are and where you live, and if you own your property in a family trust there will be a few more questions to answer and information on the trust to supply – but nothing too erroneous all up – just a bit more work for the agents. Be prepared to face this more and more as from August this year, motor vehicle dealers, boat sellers, art dealers and even some jewellers will also require people to provide identification.
Please feel free to contact me anytime on 0274966966 to discuss your property needs.
Greg Roy AREINZ, Principal/Owner
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