The NZ Herald of September 14th 2011 published in article on page 4 headed “House prices and sales on rise “.This article emphasised that the worthiness and level of homes sold over the month of August both showed increases. As has been the trend over the past 2 years, any increases outside Auckland were of a very modest nature, largely in the 1 – 2% region (measured over the previous year).
Houses on the market in Auckland, however showed much greater increases with the Real Estate Institute (REINZ) figures quoted showing median value increases of just short of 3% in the eight month period since January. Projecting forward, this can cause an expected upsurge in median values of around 5% for decades end 2011.
When reporting on houses on the market in Auckland, REINZ figures lump residences (houses) and appointment/town houses in the exact same category. The biggest number of sales are in the CBD apartment market which includes been deflated for some years. Couple this with some regions of the North Shore and Eastern Suburbs where plaster town houses predominate (for this read “leaky homes”), it is a reasonable conclusion to assume that free standing houses in good locations are on course to rise somewhere in the order of 10% in 2011.
From the figures on our own sales board, I could say that extrapolation to 10% anticipated growth is about right. There is an actual shortage of houses on the market in Auckland when measured contrary to the demand houses for sale chester. Our office is observing that for a good home in “Greater Ponsonby” we can expect in excess of 100 inspections over a 3 week Auction campaign and 4 or 5 bidders is fairly normal. Earlier last month (August) we saw two homes attract in excess of 200 inspections over 3 weekends and the amount of registered bidders exceeded 15 in both cases.
When I compare the amount of houses advertised on the market in Auckland, particularly in the principal medium of the Saturday Herald Homes supplement, it’s clear that there surely is a shed in available homes of approximately 40% over the volumes being offered 2 or 3 years back, the main difference being that there are now approximately double the amount of buyers having sufficient confidence in their personal circumstances to commit to purchase.
Confidence is on a gradual but solid increase.
In the NZ Herald article quoted earlier, ANZ economist Mark Smith said he was surprised by the REINZ figures. “The upsurge in sales volumes was stronger than we had expected. Sales are continuing to trend up with volumes up 5.4% seasonally adjusted in the 3 months to August.
With sales volumes around 24% below historical averages as a part of the housing stock, low mortgage rates being offered, and a better labour market environment, there is considerable scope for sales to go higher,” he said.
Being an industry observer and participant, it’s clear that generally speaking terms the long run is bright for those trying to transact in houses on the market in Auckland, and that some regions (normally clustered around the CBD) will show very positive growth over what is a gloomy preceding 3 years.Read More Real Estate