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

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! 

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

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

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.

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

The latest stats are out from Quotable Value and the market is still looking positive.  It is early days yet and may just be signs of a stabilising market - coming back from the depths of 2008 and early 2009.  Wellington has shown a 1.1% increase over the past year (calculated over the three months ending September 2009 in comparison to the same period last year).  Wellington Northern Suburbs have shown a 1.4% increase.