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Interest rate moves - July 2010

Tue, 13 Jul 2010 01:03:00 -0700

Interest rate moves - Fixed mortgage rates from all the major banks dropped last week reflecting lowered global interest rates. This is a moving dynamic, however, with the Reserve Bank expected to increase the official cash rate (OCR) again on 29 July by 25 basis points (from 2.75% to 3.00%), followed by further gradual increases in step with the economic recovery. Now is a good time to review your mortgage lending to ensure you are getting the best deal. I use an excellent mortgage broker who my clients have used with great feedback. If you want independent and quality advice just drop me an e-mail…it may save you a lot of money! Email me at - leonie@leoniesnook.com.

Leonie Snook, Top Wellington Real Estate Agent

Wellington property market stable

Tue, 13 Jul 2010 01:01:00 -0700

Wellington property market stable - Wellington’s property market continues to attract sellers with 766 new listings in June (up 29% on June 2009)**, though overall sales volumes remain subdued with 548 sales in May (down 19% on May 2009)***. 2008 and the recession saw the property market bottom out…followed by a strong recovery over the second half of 2009…then stabilising and flattening out over the first half of 2010. With 23 weeks of housing stock on the market (against a long-term average of 21 weeks)**, the Wellington market is skewed slightly towards buyers. For sellers it is a good time to sell, but only if you follow the right plan! If you, or your friend, family member or work mate want to know how to get top results in THIS market, call me anytime for real estate advice (Leonie 027 664 6063).

** REINZ Property Report (July 2010)
*** REINZ Market Trends Report

Leonie Snook, Top Wellington Real Estate Agent

Economic recovery slow - July 2010

Tue, 13 Jul 2010 00:55:00 -0700

Economic recovery slow – Good news…the economic recovery is real and on-track (now four quarters of positive growth)! International credit rating agency Moody’s is upbeat about NZ, expecting a ‘strengthening upswing and self-sustaining economic expansion during 2011 and 2012’. Leonie says the Rugby World Cup won’t hurt either :-) . Our export sector is leading the charge, and Moody’s note ‘NZ is well placed to continue benefiting from Australia and Asia’s strong growth prospects, though at this stage the non-exporting part of the economy remains subdued’. Bad news is the recovery is very slow with some indicators easing off :-( . While business confidence is at a good level and consumer confidence has improved*, consumer spending has remained weak so far, and the tax cuts in October will be a much needed shot in the arm. Infometrics is forecasting economic growth to peak at 4.7% in the year to March 2012, before easing off to about 3%. This is good for the medium term property market.

* UMR Consumer Comfort Index (July 2010) & National Bank of New Zealand Business Outlook Survey (June 2010).

Leonie Snook, Top Wellington Real Estate Agent

Property Values Fairly Flat

Sun, 13 Jun 2010 00:56:00 -0700

Property values fairly flat – Quotable value figures released yesterday show overall values have flattened and in some cases declined - Wellington region values for the year to May are up 6%, down from 7.1% reported for the year to April*****. This reflects that the second half of 2009 was a strong growth period recovering from the market low of 2008. Fewer listings and pent up buyer demand pushed through into prices. The early part of this year saw a surge in property listings, uncertainty about tax changes and interest rates, and the market move from a sellers market to more of a buyers market generally, with prices flattening out at a well recovered level. The Wellington market remains healthy and fairly balanced compared with the national picture (22.9 weeks of property stock on the market compared to 46.9 weeks of stock nationally, new listings up 53% on last year compared with 17% nationally, and asking prices down only -0.2% from the prior 3 months compared with –2.0% nationally******). The market is expected to continue to be flat for the short term. In this market, the value of your agent really comes into play (or not), and its critical to pick an agent who can add greater value and demonstrate top results (www.leoniesnook.com).

* Reserve Bank of New Zealand (rbnz.govt.nz)
** The Treasury, March quarters
*** National Bank Business Outlook Survey - May 2010
**** BNZ Weekly Overview
***** Quotable Value – 3 months ending May 2010, compared to same period last year
******REINZ NZ Property Report – 1 June 2010

Economic Outlook Improving!

Sun, 13 Jun 2010 00:55:00 -0700

Economic Outlook Improving – Economic growth of around 3.5% is forecast for the next two years. The export led recovery continues with signs of a sustained recovery, in particular among our major trading partners of Australia and Asia* (New Zealand recently posting its first annual trade surplus in almost 8 years). The labour market has turned sharply (unemployment forecast at 6.2% for March 2011, down from 7.1% for March 2010**) and a net 16% of business confidence survey respondents expect to hire more people over the coming year, the strongest result since early 2002. Business confidence is strong (a net 45% of survey respondents expect better times ahead for their own business in a year’s time – the highest own activity reading since May 1999***). Residential construction is also recovering with building consents rising 5.8% over the last 3 months, compared to the previous 3 months****. The indicators are positive and shaping up nicely for sustained economic growth, all good for medium term house prices and the property market.

Leonie Snook, Top Wellington Real Estate Agent

Interest Rates on the Move!

Sun, 13 Jun 2010 00:53:00 -0700

Interest Rates on the Move – The Reserve Bank lifted the official cash rate (OCR) yesterday by 25 basis points, from a record low of 2.5% to 2.75%, the first increase in 3 years. This was widely expected as the bank now starts to remove the rate stimulus, as the economic recovery is gaining hold and becoming broader*. The OCR is likely to continue to increase gradually, with economists expecting it to reach up to 5% over time. So if you are thinking of buying property or trading up, now is a good time to get in ahead of higher interest rates. If you or someone you know might be selling over the next 12 months, drop me an e-mail for a free and no obligation market opinion (leonie@leoniesnook.com).

Leonie Snook, Top Wellington Real Estate Agent

Confidence Levels are Still High

Mon, 07 Jun 2010 19:52:00 -0700

1. Confidence levels high - Business confidence levels remain strong at net 48% for May*. This points to a strong economic recovery ahead, with the composite indicator at a level consistent with over 5% year-on-year economic growth by the end of this year. Significantly, a net 45% of survey respondents expect better times ahead for their own business in a year’s time – this is the highest own activity reading since May 1999*. The economic outlook is very positive which is good for medium term employment and property values.

2. Interest rate rises - June has swung around quickly and all eyes will be on Alan Bollard next Thursday for his official cash rate (OCR) and monetary policy announcement. With the economic recovery picking up pace, the Reserve Bank is expected to slowly begin to remove its monetary policy stimulus - most economists are expecting a first increase in the OCR of 25 basis points (up from 2.5% to 2.75%). Now is a great time to review the rates and terms of your mortgage lending…are you getting the best deal you can? I work with a preferred mortgage broker who has advised clients with great feedback. If you would like independent advice drop me an email or visit my website…it may save you a lot of money! (leonie@leoniesnook.com).

3. Out-promote for top prices - my clients achieve better results for a reason. Firstly smart and adaptive marketing campaigns, great photos, property presentation and leading edge technology gets your property to stand out from the crowd…out to the masses…and more buyers through. This is followed up with best practice pricing approaches, negotiation, and passion in spades to secure the very best result. I work with clients all over Wellington to plan their success at the outset :-). If you hear of a friend, family member or work mate who is thinking of selling (or struggling to sell) put them in touch for free and no-obligation real estate advice, or forward the link to my website (www.leoniesnook.com). They will be pleased with the results and service...and you will receive generous referral rewards :-).

* National Bank Business Outlook Survey - May 2010 - percent expecting better business conditions in the next 12 months minus percent expecting worse business conditions.

Leonie Snook, Top Wellington Real Estate Agent, Wellington

Wellington City Investment Properties on the Up

Thu, 27 May 2010 21:47:00 -0700

Investment property buys

The tax rule changes were widely expected to remove claimable depreciation on investment property, though expect to see some landlords reconsidering their portfolio with some looking to sell and fewer people buying investment properties***. I have had several enquiries at the coal face since the budget, and as an experienced investor, I can guide you through buying or selling investment property. With more investment properties coming onto the market, look for some very good buys. Check out my website for criteria on purchasing an investment property or give me a call for advice.

*** BNZ Weekly Overview

Leonie Snook, Top Wellington Real Estate Agent

Export Led Recovery is Great for Wellington Real Estate

Thu, 27 May 2010 21:45:00 -0700

Export-led recovery

Figures out yesterday show New Zealand’s first annual trade surplus in almost 8 years, at $161 million for the year to April. The Treasury, on the back of government’s budget announcements, are forecasting economic growth to reach 3.2% for the year to March 2011 (up from -0.3% for the year to March 2010) and ranging around 3.0% for the 3 years following. Unemployment is forecast to fall to 6.2% for March 2011 (down from 7.1% for March 2010), and is forecast at 5.5%, 5.1% and 4.6% for the three years following**. This is all good news for the property market and house prices in the medium term, and is against a backdrop of housing shortage with demand expected to exceed supply. Buyers are out there, and now is a great time to trade up! If you or someone you know is thinking of moving, drop me an e-mail for a free and no obligation market opinion (leonie@leoniesnook.com).

* Mercer 2010 Quality of Living Survey
** The Treasury, March quarters

Wellington is on the Up!

Thu, 27 May 2010 21:41:00 -0700

Wellington has just ranked 12th (out of 221 cities) in a global poll of the world’s most liveable cities. While we are left scratching out heads about how Auckland ranked 4th :-), having two of our major cities in the top dozen in the world is great, and of course positive for migration and our property market. I work all over this awesome city, so if you or anyone you know wants to stay in touch with property or needs high quality real estate advice, give me a call or pass my update on (Leonie 027 664 6063).

Leonie Snook, Top Wellington Real Estate Agent

Interest Rates and Economy on the Up!

Wed, 05 May 2010 21:38:00 -0700

Well, the weather is turning and flu season has started! So take care of yourself... grab a cuppa and spend a couple of minutes catching up with this week's 'no fuss - no confusion' market round-up.

Quick News/Updates

Interest rate picks - The Reserve Bank left the official cash rate (OCR) unchanged at 2.5%, but said they expect to begin removing their 'monetary stimulus' over coming months. Economists are torn on whether the rate rise will begin from June or July – but with a broad economic recovery taking shape (yay!) it’s a case of when and not if (boo)! For buyers and sellers, now is a great time to make your move and get in before interest rate increases.
Free market sales – See my website for updated sales information. If you, a friend or a work mate want to know where your property sits in the market give me a call for a free and no-obligation market appraisal. I work all over Wellington…get top results for my clients…and give generous referral rewards :-) .
Confidence climb - economy right behind! - Business confidence levels increased this month to +50*, suggesting good economic growth ahead. Its also the first time since 2001 that more firms expected the unemployment rate to fall than rise – all good for jobs, investment and growth. For the Wellington region housing market, things are well recovered and stable with prices up 6.6%** on a year ago and sales volumes for March similar to last year.

In any market, the best house sale prices come from the best approaches – through smart marketing, leading edge technology and negotiation, my clients continue to get better results. Don't just pay someone to stand at your open homes... you need the best marketer and negotiator you can get. If you know someone thinking of selling this year put them in touch or drop me an e-mail to find out how (leonie@leoniesnook.com).

Harcourts National Conference

Thu, 22 Apr 2010 17:38:00 -0700

Wow - another great week in real estate AND I have been invited to be on a panel at the Harcourts National Conference speaking about growing your business by using technology. Its exciting to be part of a Real Estate company that embraces technology (check out the bluebook online) and to be recognised for being leading edge.

Quick Update

Prices up and flattening – REINZ figures released show Wellington property prices for March 2010 were 7.8% above those in March 2009 after a good recovery, though showing signs of flattening out. Uncertainty continues to weigh on the market with upcoming tax changes and interest rate rises, though a healthy pool of buyers is out there. All eyes will be on the government’s budget on 20 May to see plans for boosting economic growth.
Ticking the boxes – sellers who want the best prices (in this market) need to excel in the areas of presentation, marketing (especially photography) and also need the best marketing strategies. I have just worked with a client who ticked all the right boxes and they are very happy with the price achieved. If you know someone thinking of selling put them in touch.
Economy growing – business confidence is up**, and economists expect employment and economic growth to improve over the next year. With approx 23,000 new dwellings needed each year, and only 14,500 new dwellings being built***, a housing shortage is expected to prevail, and good property remains a good investment. As a property investor myself I’m happy to share what I have learned - for free advice and tips, click here or drop me an e-mail. I’m always happy to talk property.

* Real Estate Institute of New Zealand Monthly Housing Price Index
** NZIER business opinion survey (March quarter)
*** Tony Alexander – BNZ Weekly Overview – March

Property Values Up, Interest Rate Hike Delay and Cautious Buyers

Mon, 19 Apr 2010 20:39:00 -0700

As we welcome the rain we also welcome many sales and offers! Such a great part of my day to give settlement gifts and referral rewards :-) It shows that as per normal seasonal fluctuations, buyers are wanting to buy now - and then settle into the couch for the winter months.

1. Property values up - property values are up 6.6% for the Wellington region*. See my website for free and updated market sales information for April (www.leoniesnook.com/real-estate-resources). If you or a friend or work mate want to know where your property sits in the market, give me a call for a free and no-obligation appraisal. I work all over Wellington!

2. Interest rate rises may be delayed - business confidence is up for the March quarter with a net 36% of firms expecting conditions to improve in the next 6 months.** This and a slower economic recovery (than expected) has economists divided on whether interest rate rises will start in June or September. Either way, if you’re thinking of buying or trading up, now is a great time to get in before rates move.

3. Cautious buyers = competing sellers - buyers are out there (I’ve had 5 houses go under offer in the last 6 weeks), but there are more properties to choose from and buyers are taking their time. Sellers have to beat their competition to get the best results in THIS MARKET. This is where I come in with leading edge technology, marketing and approaches. If you know someone thinking of selling put them in touch - they will be pleased with the results and you will enjoy helping a friend and receiving a generous referral reward (leonie@leoniesnook.com).

*Quotable Value – 3 months to 31 March 2010 compared to the same period last year
** New Zealand Institute of Economic Research (NZIER) March quarter business opinion survey, seasonally adjusted

Economy On The Up!

Thu, 25 Mar 2010 14:22:00 -0700

Economy on the up - figures out yesterday show the start of a turnaround, with 0.8% growth in the economy for the December quarter compared with 0.3% for the September quarter. This is the third consecutive quarter of positive growth!* A stronger economy, combined with other factors below**, is expected to set the stage for stronger house price growth next year. So, if you’re thinking of buying or trading up, now is a great time!

* Statistics NZ
** Economists continue to expect medium term housing shortages and price growth driven by strong demand (stronger economy, positive net migration and increased employment) relative to supply (low levels of residential construction, tight finance for property development with previous finance company channels no longer available, and rising costs of construction.

Where’s this market going?

Thu, 11 Mar 2010 01:16:00 -0800

Where’s this market going? Short term factors and uncertainty are expected to dampen price growth (more properties on market, tax changes for investors, interest rates, focus on debt reduction and stringent lending policies). The exact impact is hard to pick and all eyes will be on the government’s May budget (let's break out the popcorn)! Looking out longer term, economists expect housing shortages and pressure on prices (from positive net migration, low construction levels, lower new property development by investors, improving employment and a stronger economy). For astute buyers and investors the coming months are a very good time to buy!

High Season, Mortgage Rates and Looking Ahead...

Thu, 25 Feb 2010 14:54:00 -0800

Window = Opportunity – It’s busy at the 'coal face' with more listings and a continued healthy demand from buyers in high season. There is a level of uncertainty in the market caused by expected interest rate rises and tax law changes that is playing through - for buyers high season coupled with these factors make it a great time to buy! For sellers it’s vital your property reaches the masses with a smart and well executed campaign that beats the competition. I know how to deal in this MARKET, and am continuing to get great results for my clients. If you know someone thinking about selling put them in touch to find out how. I also give generous referral rewards :-)
Mortgage $$ - The Reserve Bank has said it will review the official cash rate mid-year, and interest rates will start to climb…this isn’t far away! Are you getting the best deal on your lending? Now is a good time to look…I have a preferred mortgage broker and receive great feedback from clients working with them. Send me an email…leonie@leoniesnook.com - it could save you money!
Looking Ahead - Uncertainty and transitions aside, economists continue to see a positive medium term outlook for property, with healthy housing demand (and a resulting shortage) driven by continued positive net migration, construction levels being low (and slow to catch-up) and an improving economy. If you’re looking to trade up or snag a good investment property now is a great time. Give me a call - 027 664 6063 - and we’ll take it from there.

Interest Rates,

Wed, 17 Feb 2010 17:26:00 -0800

Quick News/Updates Feb 12th 2010

1. Interest Rate Rises – The Reserve Bank has left the official cash rate (2.5%) unchanged for now but signalled interest rate rises over 2010, as the economic recovery continues and less stimulus is needed. With some economists picking that rate rises may start as early as April, its timely to start thinking about mortgage planning and it may save you a lot of money! Give me a call or e-mail if you want to tap into some advice. I work with a preferred mortgage broker and have had great feedback from clients on their service.

2. Property Market Healthy – The property market recovered strongly over 2009 with values back to just under 4% of November 2007 peak levels*. Why is this and what does it mean for the future? Property is a demand and supply picture, and at its most fundamental level is about housing people. On the demand side net migration was just over 20,000 for the year to Nov 09 (compared to 3,569 for the year to Nov 08) and is expected to remain positive over 2010 while employment is set to improve. On the supply side, real estate construction is at weak levels (consents issued were 14,199 for year to Nov 09 just up on a previous four decade low of 13,616), and is slow to adjust leaving housing shortages. Impending tax changes for property investors and interest rate rises are expected to dampen demand and cause a transitional period to wash through. However, looking out beyond transitional factors, economists are expecting that population growth and less construction will see continued housing shortages and price increases (albeit more moderate).

3. Selling Now - We are heading into high season - a great time to sell :-) – and the phone is very busy! Selling property is about the 3 P’s - Presentation, Promotion and Price - and getting the very best results in different stages of the market requires the right approach and process. I go beyond what most other agents can offer, and work with each of my clients to provide a strategic marketing plan, leading edge technology, and project management to ensure the best possible result. You would be surprised what a difference it makes! Who do you think may be the next person you know to buy or sell? Please put them in touch. I also give generous referal rewards :-)
* www.reinz.co.nz

Tightening of New Zealand Tax Rules

Thu, 03 Dec 2009 23:24:00 -0800

A tightening of tax rules on rental properties seems inevitable, the question is more ‘what’ than ‘if’? I’ve run into several investors this week who feel its getting hard and are thinking of getting out. Watch for some potential pick up in what comes onto the market next year, as people adjust. The Tax Working Party reports to government this month. With a rental property sector of $200b (approx), largely made up of private landlords, housing 1/3 of New Zealanders government has a delicate balancing act to consider.

Much Harder to 'Buy' Listings

Sun, 08 Nov 2009 12:22:00 -0800

Under the new Real Estate Agents Act 2008, it is now against the law for an agent to over quote an expected sale price of a property. They must base their 'quote' price on actual sales for the area and provide a copy of this to the person seeking the appraisal. For more information check out www.reaa.govt.nz.

New Rateable Values

Sun, 08 Nov 2009 12:08:00 -0800

New Rateable Values are out for Wellington (check out online services on the Wellington City Council website). Many have fallen to some degree. Will this have an effect on prices? It’s no secret that buyers start by benchmarking using RV’s. However, as you can see from the latest sold properties below, RV can vary greatly from the actual price paid. Buyers have usually visited many properties before they put an offer in. They make their decision based on what others have recently paid for similar properties. Unless we see a move in interest rates causing the numbers of buyers to reduce, we should continue to achieve similar prices for properties over coming months.

Leonie Snook, Licensed Sales Person, Johnsonville Churton Park, Harcourts