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

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! 

The word on the street is that the Aussie’s are here looking for bargains. If you (or someone you know) are thinking of selling – please call us to get the right advice up front. You want that bus of Aussies to go sailing past your SOLD sign… not stopping at the door. In this market, your agent needs to work harder, smarter and faster – as although sales are down, prices need not be. It’s our job to run a campaign that gets you the best price, in the shortest time.

Leonie Snook, Steve Welsby, Top Wellington Real Estate Agents (www.leoniesnook.com)

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

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 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

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).

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.