There are times when the media is so engrossed with the doom and gloom that the usual good events of day to day living slide past unnoticed. Recently, NZ property prices have been contrasted with property prices in the USA. This is an amazing example as the underpinning factors are so different and the property market in the USA remains severely depressed. Meanwhile back in Pukekohe it remains possible to buy an existing home for less than it costs to build a similar home making it hard to argue housing stock is overpriced. And sales statistics are showing that buyers agree.
The ripple of buoyant Metropolitan Auckland market is beginning to show in Pukekohe’s residential property market as is the increased activity of first home buyers. Our settled sales for the September October period are the highest they have been since 2006. Sales numbers are 76% greater than in 2010 and 18% ahead of those for 2006. This lift contrasts with the very weak Spring sales in 2008 - 2010. Following a strong Winter market this is a good indication of better things ahead.
Perhaps more significant than the gross sales numbers is the changes within price segments. Sales numbers are now running at very similar levels to those of 2006 figure for the $300,000 - $349,000; the $350,000- $399,000 segment; the $450,000- $499,000 segment; and more significantly the $500,000 - $549,000 segment. This shift in the $500,00s sales provides some confirmation of the return to ‘trading up’ within the Pukekohe market. The strengthening of sales numbers in the lower price segments confirms first home buyers are back, at least for now, in an overall situation of rising rents and low interest charges. Overall it appears that there is a return to the more usual pattern of trading: when the present home no longer meets the family’s needs it is changed.
Trends
Expect demand to remain strong for homes in preferred school zones in the $370,000 to $520,000 price range. Expect demand for sections to lift, albeit off a low base, as ‘spec builders’ return to meet the needs of those tired of looking for ‘the right home’.
Buyers
Buyers will continue to focus on affordability rather than how much money they are offered. As a buyer I would have my finance sourced and know my buy real level.
Sellers
As a seller I would have my home de-cluttered, landscaping in order, appraisal completed, agent selected and marketing plan ready. February may well be the start of a stronger market.
These views are ours alone and do not necessarily shared by Barfoot & Thompson
www.duplessisproperty.co.nz
Elizabeth du Plessis 09 238 7019, 027 222 2117