Leonie's blog

Wellington shifts to sellers market - August 5th 2011

The Wellington market has tightened over the last 4 months and is now tilted towards sellers - in July, total housing stock available on the market fell to 20.9 weeks*, down from 28.9 weeks in April (a fall of 28%) and 17% below July last year**.  This confirms what we’ve been seeing – steady sales, good open home attendances, more multiple offer situations, and buyers saying they can’t find enough new quality listings.  NOW is a great time for sellers to come to market with strong buyer interest and a shortage of listings.  If you or someone you know is thinking of selling get in touch early for the right advice and a plan (leonie@leoniesnook.com).  Buyers, have clear criteria but be flexible, do homework on comparable sales, be able to move quickly in competitive situations (obtain finance pre-approval, work out who you’ll use for checks and have these lined up) as unconditional offers, or as near or quick as possible, carry weight!

* Time in weeks to clear the current inventory of homes for sale at the present rate of sale
** NZ Property Report – July 2011 (realestate.co.nz)

Leonie Snook and Steve Welsby, Top Wellington Real Estate Agents
#1 Agents, Harcourts Active Wellington City and Suburbs 2010-2011

Success starts with preparation!

There are a range of things to look at when getting a property ready for market – whether attending to areas of maintenance (e.g. freshening-up key paint areas or an entrance), presentation touches (e.g. house wash and paths), and/or staging arrangements (arranging furniture to best show space and a vision that works).  As well as being award winning agents, we have also been landlords for a long time and have done-up a lot of property.  Let’s bust some popular myths – MYTH #1 – ‘it’s expensive’ – WRONG! You should be able to recoup $3 for every $1 spent.  Focus on the right things – it’s often little things that count and that aren’t expensive…think ‘Trinny and Susannah’ :-/.  MYTH #2 – it ‘takes too long’ – WRONG! We connect you with tradespeople so a make-over happens fast, and what else are evenings for…  And the big one – MYTH #3 – ‘it doesn’t matter’.  WRONG! Buyers make a crucial first impression in an instant which determines how they feel about your property – whether they connect or run for the door.  Don’t score an own goal, work with an agent that gets this and can help you with a tailored plan.  For a free assessment give us a call (027 518 0008).

Leonie Snook and Steve Welsby, Top Wellington Real Estate Agents
#1 Agents, Harcourts Active Wellington City and Suburbs 2010-2011

June numbers show a house building industry still struggling.

995 consents were issued for new homes nationally, down 28% on June 2010***.   Consents are thought to be running around 1,000 per month below where they need to be for normal population growth, with estimates of a current national shortage of around 45,000 homes (inclusive of losses from the Christchurch earthquakes)****.  FACT – New Zealand has an undersupply of property which has cushioned the extent of fall in prices through the recession and will lead to some upward pressure on prices as the recovery gathers pace.  This is most acutely being seen in Auckland.

*** Statistics New Zealand
**** BNZ Weekly Overview

Leonie Snook and Steve Welsby, Top Wellington Real Estate Agents
#1 Agents, Harcourts Active Wellington City and Suburbs 2010-2011

The median days to sell in Wellington stretched out to 55 days in June, 8 days up on May (47 days) and 11 days up on June 2010 and June 2009 (each 44 days).  Houses are taking longer to sell though as always, depending on who you work with and the approach taken, your own results can vary markedly.  We sold 10 homes in the 12 weeks ending 30 June, with a median days to sell of 23 days…yes that is a lot lower :-).  In THIS market, strategic marketing is critical for top results and is not just about placing an ad.  Find out if your agent has a marketing qualification, how they market homes and the number and type of viewings and offers they receive in campaigns.  If they can’t answer these questions…put simply…move on!  Remember it costs no more to work with a top agent but can save you thousands (www.leoniesnook.com).

Leonie Snook and Steve Welsby, Top Real Estate Agents, Wellington

Will interest rates moves early?  The Reserve Bank dropped the official cash rate (OCR) back in March to a record low of 2.5%, as stimulus following the Christchurch earthquake and a weak economy.  Economists were expecting interest rate rises to start in early 2012 though this now looks likely to come forward.  Official figures for economic growth released last week (March Quarter = 0.8%**) and for inflation this week (June Quarter = 1.0%**) were both higher than expected and have economists now expecting interest rate rises to start as early as September this year.  Banks have generally eased lending criteria over the last few months so if you are buying or trading up it pays to shop around.  For those with mortgages, now is a good time to consult the old crystal ball :-) and review your split between floating and fixed rates.  We have a mortgage broker that has received great feedback from clients.  If you need advice in this area, drop us an e-mail (leonie@leoniesnook.com).

Leonie Snook and Steve Welsby Top Wellington Real Estate Agents

** Statistics New Zealand

We have talked with quite a few buyers over the last few weeks, eager to buy but simply unable to find something to offer on.  Why?  Sales have been really active over the June quarter while listings have fallen significantly.  This has seen us go from 28.9 weeks of housing stock on the Wellington Market in April (long term average is 22 weeks), down to 23.9 weeks in June (a fall of five weeks in 3 months to a more balanced market!!).  We have sellers taking advantage of the current listing shortage and listing their properties NOW.  If you (or someone) you know is thinking about selling and would like a free appraisal and plan give us a call (027 518 0008).  We believe in doing this properly for top results and can connect you with cost effective tradespeople to get your properties spruced up and in shape fast.  Attention to the right things needn’t cost much but can save you thousands! 

Bill English delivered his budget yesterday.  No major surprises…though a lively debate in parliament :-).   So, what does it mean for property?  Employment and income are key drivers for housing demand, and the forecast economic growth (1.8% for the year to March 2012, then 4% and 3% for the next two years), job creation (170,000 net new jobs by 2015), and wage growth bodes well for the property market medium term.  First home buyers are currently active…with low interest rates, flat prices, and banks loosening criteria, realising now is a great time to buy or climb the property ladder.  Working in the other direction, however, Wellington will face some uncertainty from significant cuts to public sector spending over the next 3 years (almost $1b).

Leonie Snook and Steve Welsby, Top Wellington Real Estate Agents

I went on a baking spree and then we visited Ronald McDonald House last week.  It was fantastic and uplifting to meet people absolutely passionate about what they do.  They are camping in temporary premises, ready for the old house to be demolished and building to start on a new bigger and better house to help even more families.   If you want to get involved with this great cause visit their facebook page or website - http://www.givealotoflove.org.nz/. 

Leonie Snook and Steve Welsby, Top Wellington Real Estate Agents

Quick news/update (Friday 8 October 2010)

1. Spring lift a bit of a fizzer...  The market hasn’t seen the large lift in activity  that usually comes with spring.  Sure... new property listings in Wellington rose 15% in September (836 new listings) compared with August (729 listings), but this is still 7% down on September 2009*.  Despite this, we personally have been having a record period this year (good news travels fast)...7 new properties listed in the last 4 weeks!  Remember... it costs no more to work with a top performing agent!

2. Some sit... some sell...  729 new listings came onto the market in August* and only 501 homes were sold**…get the picture :-)?  Some properties sell and others sit (median days to sell is 43**).  New listings are down (7%), and so are the volume of sales (19.5%)**.  This means 24.1 weeks of housing stock on the market to choose from (long-term average = 21*)... the market is tilted slightly to buyers.  Buyers are finding there’s a shortage of quality, well presented property and are taking their time and being picky.  Sellers need to present their property well and those who do this and invest in great marketing are getting very good results!   We work with our clients well before the first open home to ensure they get the best possible result.

3. House prices – Not much new here...  QV just reported Wellington house prices sitting 0.3% up for September compared with the same month last year***... flat as a pancake!  That said, we are breaking records on prices achieved - in this market.  A fully resourced and high performing agent, using best practice systems and approaches, should save you tens of thousands of dollars in your sale process.  If you or a workmate want to know where your property sits in this market and how to get a premium price give us a call (021 518 0008).

* NZ Property Report (1 Oct 2010) – realestate.co.nz
** REINZ – Wellington Sales in August 2010
*** Quotable Value Residential Price Index for September

Leonie Snook, Steve Welsby, Top Wellington Real Estate Agents

There’s a lot to be said for defining your own reality and for buyers and sellers working on what you can control.  I often hear people say ‘oh the market is not good or it’s a bad time to sell’.  Is it really?  The market is flat…BUT…buyers are out there, they are making offers and houses are selling.  Of the 9 properties we sold (or achieved contracts) on in the last 10 weeks, 331 buyers came through them, median days to sell was 23 (versus Wellington market median of 37 days), multiple offers were made on all but one property, and total offers made across the 9 homes was 31!  Don’t get me wrong…its hard yakka out there :-)…but rest assured great results can be achieved if you do the right things well.  What’s clear is sellers must work with a top agent who gets marketing and can deliver it.  For buyers, there are some very good buys out there but there’s also competition for quality properties…if you see a home you really like act quickly!  If you or someone you know would like a no-obligation and free market appraisal or advice give us a call (ph 027 518 0008) or visit our website (www.leoniesnook.com).

** Real Estate Institute of New Zealand

Leonie Snook and Steve Welsby, Top Wellington Real Estate Agents