Team Davis APRIL 2019 northland Property MARKET UPDATE BASED ON MARCH 2019 RESULTS

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Northland Market UpdatePeople are asking us “what do we think is happening to our property market”, well here are the latest monthly statistics.

In a SNAPSHOT: Volumes remain down, prices are still up and it is taking longer to sell, but still a good market in which to sell.

NATIONAL MARKET OVERVIEW:

Here is REINZ latest Property Market Update:

The number of residential properties sold in March fell by 12.9% from the same time last year to 6,938 (down from 7,964) according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand. The last time sales volumes fell this much on an annual basis was 17 months ago.

NATIONAL MARKET KEY INDICATORS:

 teamMedian Sale Price: $585,000  teamPrice Change Since Last Yr: + 4.5%   teamVolume Change Since Lase Yr: -12.9%
 teamAvg Days on Market: 48    

 

NORTHLAND OVERVIEW: (by REINZ)

“In March, the Northland market saw sales volumes decrease by nearly a quarter (-24.4%) when compared to the same time last year, but on the flipside median prices were up by 9.9% due to a large increase in sales in the $750,000- $999,999 bracket. Total inventory was up 10.1% year-on-year, but new listings during the month were down 4.5%. Anecdotally, fewer first home buyers were active during the months, but investors were more active. Banks are competing on interest rates, but are tough on lending, which could explain why we see fewer first home buyers in the market. With most contracts including a finance clause, there are fewer cash sales compared to when there was more competition a few months back.

The current trend is that we see a general tightening of the market, we see an increase of inventory giving buyers more options and we also see that valuers are leaning towards more conservative valuations.”  Bindi Norwell REINZ CEO

April1

NORTHLAND MARKET KEY INDICATORS:

 teamMedian Sale Price: $500,000  teamPrice Change Since Last Yr: +9.9%  team Volume Change Since Last Yr: -24.4%
 teamAvg Days on Market: 48    

   

REGIONAL COMMENTARY:

Our seasonally adjusted results tell us that, compared to what we expect when moving from February to March, the observed minute decrease in median price was fractionally less than expected and the observed increase in sales count was a more than expected. The current days to sell of 48 days is a lot less than the 10 year average for March which is 64 days. The level of inventory available for sales currently sits at 40 weeks, 14 weeks more than in March 2018.

DETAILED STATISTICS ARE:

Apr2

Apr3

In the main the statistics are showing the same result we have seen now for the last 4 months, volumes are down but prices are up.  Volumes are down as we are measuring against a higher volume selling period of 2017 and 2018 that no one would have expected to continue.  If anything we are returning to a more normal market with volumes and buyers purchasing while still having to sell their existing property.

So our volumes remain down and this looks like it will continue as buyers take more time to find the place they want to buy.  Buyers seem to be in no hurry as they continue to read news that is mostly about Auckland market prices having peaked and now showing signs of falling.  But this is not what our data is showing for Northland, prices are still going up but slower, so the market is still doing well despite the drop in volume.

For now we continue to experience buyers becoming more fussy about what they are buying, and while there are still some investors buying, a significant part of the drop in sales could well be due to a reduction in investment buyers in the market.  This is due to Landlords having to spend time and funds on upgrading their existing properties to meet new Landlord Rental Obligations with all rental properties requiring to be insulated by 1 July 2019 or face being fined and to a lesser extent waiting to see what the new Capital Gains Taxes being considered by the Government may bring.

All that said, we still have more buyers than we have properties to show them, location is a key requirement with properties wanted but not being available, also smaller modern properties are also in high demand.

So if you are thinking of Selling, NOW is still a good time to consider listing your property. 

Well, that’s all from us for now, so take care everyone, and continue to enjoy our hot autumn days and especially our long Easter weekend coming up.

If you are thinking of SELLING then please give us a call as we would love to help YOU!

Kind Regards,

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Miriam and Steve as TEAM DAVIS
Sales Consultants - Licensed Salespersons REAA 2008
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Optimize Realty Ltd Licensed Agent REAA 2008
Contact Details:

Freephone: Team Davis 0800 TEAM DAVIS (832 632)
Miriam: 0275 776 335  E: miriam.davis@harcourts.co.nz
Steve:  021 820 015     E: steve.davis@harcourts.co.nz
Website: www.teamdavis.co.nz
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