Today is Friday, 27 April 2018

Our Take on the Market

Sales statistics just released by REINZ for January 2018 show that across New Zealand there was a mixed bag of results with some areas showing growth year on year and other areas seeing a decrease.

Our local area, Eastern Beaches, saw the median price drop back to its lowest since March 2016 to settle at $1,000,000. This is down $140,000 from the peak set in March 2017, but to add some confusion and to demonstrate some of my comments from the last couple of months about the erratic movement in the median price, we had a median in November 2017 of $1,130,000, and then $1,031,000 in December – so at a $1,000,000 it’s a drop of $130,000 over 2 months. What this really means in terms of market prices is unclear to me. Sales volumes for January were 73, the second lowest number of monthly sales in the area in over 10 years. The lowest was in January 2017 with 63 sales – a long way away from months like March 2007 with over 350 sales. The days to sell were 45 which is not unusual for a January. Currently is showing 437 properties for sale in the area. This is well up from last month’s 347 and is a reflection of the lower sales volumes and the usual increase in people coming to the market early on in the new year.

For Auckland overall, the median price decreased by 1.2% to $820,000 down from $830,000 at the same time last year. Much of the reduction is attributable to the decreases in Manukau City down 10.2%, Rodney District down 4.3% and Waitakere City down 2.8%. Manukau City’s median price is the lowest since January 2016, Rodney’s is the lowest median price since September 2017 and Waitakere’s is the lowest since March 2016. There were 1,157 sales for the month – slightly up on January 2017’s 1,147 and less than Decembers 1,752. Days to sell were up only slightly compared to past years at 44 Days. The only other region besides Auckland to experience a median price decrease year-on-year was the West Coast, which was down 10.0% to $135,000. Meanwhile two regions saw record median prices in January Otago up 32.9% to $475,000 and Hawke’s Bay up 18.4% to $438,000.

Overall for the country the median house price increased by 7.1% to $520,000, up from $485,500 in

January 2017. The countries median in December was $550,00 so we are seeing a fair degree of fluctuation nationally as well as locally. Sales number were up on last January’s with 4,366 up from 4,251 and the days to sell at 46 is up from last year’s 41.

I would expect there to be continued volatility in the market as we go through this end of the boom cycle in the market. Even after 25 years I am still seeing new factors coming in and effecting the confidence of buyers and sellers.

Please feel free to contact me anytime on 0274966966 to discuss your property needs.

Greg Roy AREINZ, Principal/Owner