The Greenhithe team had the best January ever! Whilst new listings are very low in number, we were lucky to have a number of vendors commit to marketing their homes and delighted to have a rapid response for a number of them.

Since the Greenhithe office has 16 people working in sales and can draw on the buyer base of all Barfoot & Thompson branches, we are proud to have a dominant market position in the area. For vendors this means we can offer more buyers in a shorter period of time - which is likely to result in offers based on market competition, offering the chance of that quicker sale with a better price.

We are especially proud to see this apparent in all price and housing brackets- from sections to million dollar  properties. To see our current listings please click here.

ECONOMIC INDICATORS:

• 994 new dwellings, incl. apartments, authorised in December. The lowest in a December since the series started in 1965.
• The world [commodities] price index increased for the fifth consecutive month in January, up 73.9% on Jan 2009. [NZ Herald 2/2/11]
• Reserve Bank of NZ leaves OCR at 3% and economists now pick September as the likely date for next rise .
• Sentiment likely to lift with Rugby World Cup .
• In Auckland, November domestic guest nights were up 52,000 or 20.8 per cent [on Nov 2009]. [NZ Herald 19/1/11]
• The average weekly rent for January was $416, up $5 on December and $15 higher than last January. [Barfoot & Thompson]. Currently rental demand is very strong and pressure on rents (especially in the central city and North Shore) is very obvious - so watch this space!

PREDICTIONS:

Economists suggest the market is likely to remain stable for the first half of the year with a likelihood that the inherent shortage of properties will start to feature more and more as the year goes on, putting pressure on both rental and sale prices. As the overall economy continues to come out of the low growth period and wage and job growth resumes,  house prices are likely to find increasing support.

If you are going away over the festive season, it could be time to start preparing your home to ensure it and your belongings remain safe whilst you are away.  Consider the following:

1) Lock away tools (e.g. hammers, spades etc.). Burglars love having these provided!

2) Confirm all doors & windows are secured.

3) Advise your neighbours of your intention and provide them with contact details & ask them to empty your mailbox.

4) Arrange care for plants and pets.

5) Make sure your alarm is fully functional.

6) Spray insect repellent around sensors.

7) Make sure outside sensor lights are working.

8) Consider installing a timer for lights & radio.

9) Switch off anything electrical at the wall.

10) Leave the house looking "lived in" (a towel on the line, pair of shoes by front door etc.)

October & November saw the rise in listings, which normally occurs earlier in the season. Buyers responded, so sales volumes rose over November.  However, in general terms the North Shore Real Estate market continues to reflect the overall economy.  REINZ data shows that in the 12 months to March there were 209 sales in Greenhithe (by all companies).  In the 12 months to October, this had dropped to 145.  In other words, the renewed caution that has been apparent in consumer confidence and the retail market this year is mirrored in real estate.  People are paying off debt and  impulse buying is rare.  On the other hand vendors are not hugely discounting to sell or listing in large numbers.  Hence the market remains basically balanced (with a slight downward bias).  QV’s Residential Price Index for October shows that property values in the Auckland region are just beginning to level out, although they have dropped by 1.0% since March this year.  In contrast, values increased by 6.7% in the five months to March.  Consequently, values now sit 3.0% above the same time last year, but 2.7% below the market peak of late 2007.

 At Barfoot & Thompson we had a fantastic November, proving that correctly marketed, well priced properties sell well.  There is a large pool of buyers looking for the right property.  Thus often new listings can provoke a fast response.

The NZ media regularly quotes economists commenting on house prices & affordability. Often they compare house prices to incomes. This kind of reporting ignores one huge issue. A house built in 2010 is a lot more than just a house! When we take an objective look at an "average" new home being built on the North Shore over the last 50 years, it becomes obvious things have changed hugely.

Back in the 1960’s the average new home was probably a weather board 95 sq meter one level home on a full site. It would boast 3 bedrooms (often with the 3^{rd bedroom really only a baby room). There would be no insulation, one power point per room, wooden joinery and a basic kitchen. The laundry sink was a concrete tub.}

Interestingly – this was similar to the comparables over many decades prior. The only real difference lay in the location where new building was occurring and architectural style….

However, in the subsequent 50 years – house building technology and what we expect from a home has changed hugely.

In the 1990’s the average new home was already very different. I picture a 195 sq meter, 4 double bedroom, double story home with double internal garage. It would feature automatic garage door openers, alarm, dishwasher, ceramic top stove with rangehood over, wall & ceiling insulation (of varying quality). There would be several power points and light fittings per room, several phone connection points and several aerial outlets. The two bathrooms would offer a heated towel rail and heat lights with fan. Wardrobes & laundries had organisers built in. Gardens were planted and fences in place

In 2010, we are selling new homes of say 300 sq meters. They are typically again 4 or 5 bedroom, double story homes but now with a lot more space and more amenities. The double internal access garage with auto doors is still standard. In fact, all the above mentioned fittings are present – but they are now stainless steel & include a fitted double width fridge/freezer (with all mod cons). In addition, there is an upgrade to superior insulation, double glazed windows, 3 tiled bathrooms with under floor heating. Heating is now by installed heat pumps (two or three). All the modern wiring is pre-installed. This often includes set up for home theatre but definitely lots of power points, expensive light fittings etc. etc. Again gardens are handed over fully planted. In addition, there will be an expensive storm water detention system (as required by council).

Whilst we looked at new homes above, the existing housing stock is actively upgraded too. Under the government insulation scheme, many homes have had insulation and heating upgraded. Almost all now come with many more appliances than they did in the past. Many will have been extended considerably (with decks, conservatories and basement conversions being the most frequent additions).

Thus when economists compare house prices to incomes – they are not comparing apples with apples. Today one is buying a lot more home, garaging, lots of appliances, fittings, garden plants etc. etc. All this is labelled "the sale price of a house"

IT'S SPRING!!

Spring is traditionally a  time of new beginnings and fresh energy. This year, we had a false start in August (with a definite lift in activity levels). Then, however, the September storms hit – and buyer numbers dwindled again. Now the good weather has finally arrived – the traditional lift in activity levels is again clearly apparent..

Over the last month – the world economic outlook has deteriorated and taken the NZ confidence levels with it. As a result, we continue to see a cautious attitude prevailing with the retail sectors showing subdued activity. The NZ Real Estate market is generally reflecting national confidence levels. However, it has also become a tale of two markets. The main cities are relatively stable with prices plateauing but the provinces are much more subdued with some price drops still apparent.

Whilst turnover volume is likely to stay considerable lower than in the boom days of 2006/7, it is also likely to be well above the dire days of 2008. Most commentators see a steady, stable, normal Real Estate market for some time, with “house prices edging higher from second half of 2011” (Tony Alexander, Weekly Overview Aug26

On the North Shore, listings are at a premium. The normal spring listing rush has not yet come through in traditional volumes. As a result, the market remains balanced – with stock levels normal. This means it is neither a buyers nor sellers market.  Last September Barfoot & Thompson sold 184 properties on the Shore – this year we sold 132. The average North Shore sale price, however has increased from $550,167 last September to $599,633 this September. 

However, vendors do need to note that the average sale times have drifted out and prices have plateaued in recent months. Purchasers need to keep alert. We are continuing to see some new listings sell within a matter of days, at times with multiple offers. Other homes take longer to sell – often with no discernable logic.

The Barfoot & Thompson Greenhithe office has noticed a considerable increase in activity over the last few weeks – as the sun came out. We have more buyer enquiry and sold 5 properties so far this week.

As always - feel fee to give us a call on 413 6528 for a chat or email Lucas on lbonne@barfoot.co.nz

The Greenhithe Market Updates are written by Lucas Bonné, Manager at the local Barfoot & Thompson office. Lucas can be contacted on lbonne@barfoot.co.nz . Opinions are his own and not representative of Barfoot & Thompson. Whilst all care has been taken in presenting the above information, no responsibility is accepted for the accuracy of the whole or any part and interested parties should make their own enquiries to satisfy themselves in every respect.

IT'S SPRING!!

Spring is traditionally a  time of new beginnings and fresh energy. This year, we had a false start in August (with a definite lift in activity levels). Then, however, the September storms hit – and buyer numbers dwindled again. Now the good weather has finally arrived – the traditional lift in activity levels is again clearly apparent..

Over the last month – the world economic outlook has deteriorated and taken the NZ confidence levels with it. As a result, we continue to see a cautious attitude prevailing with the retail sectors showing subdued activity. The NZ Real Estate market is generally reflecting national confidence levels. However, it has also become a tale of two markets. The main cities are relatively stable with prices plateauing but the provinces are much more subdued with some price drops still apparent.

Whilst turnover volume is likely to stay considerable lower than in the boom days of 2006/7, it is also likely to be well above the dire days of 2008. Most commentators see a steady, stable, normal Real Estate market for some time, with “house prices edging higher from second half of 2011” (Tony Alexander, Weekly Overview Aug26

On the North Shore, listings are at a premium. The normal spring listing rush has not yet come through in traditional volumes. As a result, the market remains balanced – with stock levels normal. This means it is neither a buyers nor sellers market.  Last September Barfoot & Thompson sold 184 properties on the Shore – this year we sold 132. The average North Shore sale price, however has increased from $550,167 last September to $599,633 this September. 

To see the full Barfoot & Thompson September Market Update - click here.

However, vendors do need to note that the average sale times have drifted out and prices have plateaued in recent months. Purchasers need to keep alert. We are continuing to see some new listings sell within a matter of days, at times with multiple offers. Other homes take longer to sell – often with no discernable logic.

The Barfoot & Thompson Greenhithe office has noticed a considerable increase in activity over the last few weeks – as the sun came out. We have more buyer enquiry and sold 5 properties so far this week.

As always - if you would like more information - email Lucas on lbonne@barfoot.co.nz or call the office on 412 6528.

The Greenhithe Market Updates are written by Lucas Bonné, Manager at the local Barfoot & Thompson office. Lucas can be contacted on lbonne@barfoot.co.nz . Opinions are his own and not representative of Barfoot & Thompson. Whilst all care has been taken in presenting the above information, no responsibility is accepted for the accuracy of the whole or any part and interested parties should make their own enquiries to satisfy themselves in every respect.

Well, we have voting forms in out letterboxes …… from 1 November, Auckland will have a new council!

What does this mean for homeowners and the property market?

Currently this is still a huge area with lots of questions and few answers.
The Auckland Transition Agency has issued some press releases with basic information. They are trying to standardize documentation, procedures and charges.

We now know, that for North Shore Citizens the cost of planners, building consent officers etc. will reduce slightly. From for example $135/hr to $120/hr for a planner.

However, costs and procedures for, for example, LIM reports are still to be set…. (annoying for us Real Estate professionals trying to advise our prospective vendors).

 Trades people are excited at the prospect of being able to work under the same rules in all parts of Auckland. The ability to use identical building consent applications in all parts of the city should definitely produce cost savings in the long run.

Overall, the clear answer is that homeowners should be getting an improved service and cost savings.

Good luck to the Transition Agency, though! They have a big job ahead of them.

COMMENTS WELCOME

As always, feel free to comment or ask questions. Remember there is a Real Estate discussion forum on this website. Alternatively, feel free to email questions to Lucas on lbonne@barfoot.co.nz  or contact the team at Barfoot & Thompson on 413 6528.

The Greenhithe Market Updates are written by Lucas Bonné, Manager at the local Barfoot & Thompson office. Lucas can be contacted on lbonne@barfoot.co.nz . Opinions are his own and not representative of Barfoot & Thompson. Whilst all care has been taken in presenting the above information, no responsibility is accepted for the accuracy of the whole or any part and interested parties should make their own enquiries to satisfy themselves in every respect.

IT'S SPRING!!

A time of new beginnings and fresh energy. This year, it seems Spring started a month early!

Whilst the confidence in the global economy and the NZ economy has fallen in recent weeks, Greenhithe Real Estate activity in August showed a definite pick up. The media may still be cautious and reserved, but purchasers found renewed confidence and went looking. At Barfoot & Thompson, Greenhithe, August was a cracker month. Open Home attendances rose, and we sold more properties than we listed – ending up with a shortage of listings.

The NZ Real Estate market continued to experience modest winter turnover volumes but the lack of new listings was a wide spread phenomenon. At the start of September, Barfoot & Thompson had 5626 properties for sale, which is the lowest number for 7 months. This means that the power between vendors and purchasers remains finely balanced.

Happily, the traditional spring lift in listing activity is now coming through and we are expecting to bring an exciting new selection of homes to the market to meet the traditional rise in demand.

All this of course is the normal pattern at the end of Winter. Whilst turnover volume is likely to stay considerable lower than in the boom days of 2006/7, it is also likely to be well above the dire days of 2008. Most commentators see a steady, stable, normal Real Estate market for some time, with “house prices edging higher from second half of 2011” (Tony Alexander, Weekly Overview Aug26).

To see the full Barfoot & Thompson August report, click here.

NZ ECONOMY

The NZ economy continues to be hugely influenced by the world scenario. On one hand, commodity prices are high, the Chinese and Australian economies are resilient and there is continued growth amongst our trading partners. (The value of New Zealand exports rose 12 per cent in July.) On the other hand, the US is showing signs of a faltering recovery and Europe is proving to be a story of two parts. NZ consumer and business confidence has fallen and caution remains the keyword. However, whilst this is slowing projections of NZ growth, it remains a tale of a cautious but continuous slow recovery.

INTEREST RATES

“The probability of another OCR rise on September 16, as reflected in swaps market pricing, has fallen from 75 per cent to 25 per cent over the past four weeks, and the market has gone from expecting three or four OCR hikes over the year ahead to two at the most.” Brian Fallow, NZ Herald Aug 30.

In other words – we can expect floating rates to remain low longer than previously expected (possibly until December). On the other hand, the world scenario has also seen medium term fixed rates come down over recent weeks. However, economists currently still pick floating interest rates as the best short term option.

“Practically everyone will probably be best served by staying on the floating rate” (Tony Alexander, Weekly Overview Aug 26).

To check out current interest rates click here

STATISTICS

* REINZ stats show there were 160 sales in Greenhithe in the 12 months to July 2010.

* Median # of days for a home to sell in Greenhithe in July 2010 was 40 days (sections and higher priced homes take   considerably longer).

* Rents continue to be up on a year ago. “Rental activity remained strong in August, with the average weekly rent achieved being $406, down $2 a week on the average for July but up $28 on that for August last year” (Peter Thompson)

As the Barfoot & Thompson data below shows, the sales volume for August on the North Shore is definitely down from last year (when we had a "catch up phase" once people realised the world calamity had been avoided). However, Greenhithe seems to be moving against the trend with good sales having been achieved and the North Shore sales in the year to date are still up on last year.

COMMENTS WELCOME

As always, feel free to comment or ask questions. Remember there is a Real Estate discussion forum on this website. Alternatively, feel free to email questions to Lucas on lbonne@barfoot.co.nz  or contact the team at Barfoot & Thompson on 413 6528.

The Greenhithe Market Updates are written by Lucas Bonné, Manager at the local Barfoot & Thompson office. Lucas can be contacted on lbonne@barfoot.co.nz . Opinions are his own and not representative of Barfoot & Thompson. Whilst all care has been taken in presenting the above information, no responsibility is accepted for the accuracy of the whole or any part and interested parties should make their own enquiries to satisfy themselves in every respect.