Leonie's blog

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

September has been another record breaking month for traffic to NZ real estate websites with over 1,500,000 unique browsers.  The top four real estate websites saw another month of growth in unique visitor numbers for September:

According to an article on the Landlord Website there was a 19% increase in listings in September 2009.  This could be attributed to the 'Spring Fling' however with prices increasing and vendor expectations of prices increasing we do see and increase in consumer confidence.

Of course there is talk of Capital Gains Tax - the government and their media team are 'chip... chip... chipping' away at that one with various media releases and statements, but that doesn't seem to have dampened the rise in prices or buyer activity going on.

Mortgagee sales continue to rise especially in Auckland and in the most part with investors.  If you are struggling with payments please call me first - we may be able to sort out a plan to svae your house from the bank...

Have a great weekend, Leonie Snook, Sales and Marketing Consultant, Harcourts, Wellington.

The Sunday Star times released numbers today regarding the number of mortgagee sales. They are on the rise not only in Auckland - where pages and pages of black and white photos show the carnage... but also in Wellington. It was corporate developers and property investors who were feeling the pinch... but now it is the average kiwi homeowner. With redundancies and reduced cashflow, they hold out for as long as possible through fear and pride and then bam... ,mortgagee sale. If you are in this predicament please call me. I understand your predicament and will help you work to a solution. I have many contacts in the housing industry and we may be able to help you. Leonie Snook, Sales and Marketing Consultant, Harcourts Johnsonville www.leoniesnook.com

Well, the latest media release is saying ‘watch out’ multiple property owners who are too highly geared… mortgagee sales are up. Check out the NZ Herald article. 81% of the mortgagee sales were people who own more than one property. Many people were caught up in the buying frenzy in 2007. With job losses looming and bosses cutting back on wage increases… we will see more and more of these. My advice would be to talk to someone before it is too late. Do not let pride get in the way. There are business out there that can help you out including www.avenuehomesnz.com. If all else fails I urge you to not try and sell your property yourself… the percentage of homes that sell privately for an above average price is tiny. I am an avid property investor and would not do this. You (the seller) gets overly involved and buyers do not react well to dealing directly with sellers. Good agents (and I mean good) are worth their weight in gold in their marketing, product and negotiation skills. I want the best price for my properties so I employ the best.