The NZ Herald of September 14th 2011 published in article on page 4 headed “House prices and sales on rise “.The article emphasised that the worth and level of homes sold on the month of August both showed increases. As has been the trend in the last 2 years, any increases outside Auckland were of an extremely modest nature, largely in the 1 – 2% region (measured over the prior year).
Houses for sale in Auckland, however showed much greater increases with the Real Estate Institute (REINZ) figures quoted showing median value increases of just lacking 3% in the eight month period since January. Projecting forward, this may result in an expected escalation in median values of around 5% for a long time end 2011.
When reporting on houses for sale in Auckland, REINZ figures lump residences (houses) and appointment/town houses in the exact same category. The largest number of sales are in the CBD apartment market which has been deflated for many years. Couple this with some areas of the North Shore and Eastern Suburbs where plaster town houses predominate (for this read “leaky homes”), it is really a reasonable conclusion to think that free standing houses in good locations are on the right track to increase somewhere in the order of 10% in 2011.
From the figures on our personal sales board, I will say this extrapolation to 10% anticipated growth is all about right. There is a genuine shortage of houses for sale in Auckland when measured against the demand houses for sale chester. Our office is observing that for a great 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 how many registered bidders exceeded 15 in both cases.
When I compare how many houses advertised for sale in Auckland, particularly in the principal medium of the Saturday Herald Homes supplement, it is clear that there is a drop in available homes of approximately 40% on the volumes available 2 or 3 years back, the key difference being that these day there are approximately double how many buyers having sufficient confidence inside 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 escalation in sales volumes was stronger than we’d expected. Sales are continuing to trend up with volumes up 5.4% seasonally adjusted in the 90 days to August.
With sales volumes around 24% below historical averages as a percentage of the housing stock, low mortgage rates available, and a greater labour market environment, there is considerable scope for sales to maneuver higher,” he said.
Being an industry observer and participant, it is clear that in general terms the near future is bright for anyone seeking to transact in houses for sale in Auckland, and that some regions (normally clustered across the CBD) will show very positive growth over what is a gloomy preceding 3 years.Read More