NORTHLAND PROPERTY MARKET UPDATE ON RESULTS FOR OCTOBER 2020

In a SNAPSHOT : Volume is UP on the prior year, median price is UP, and properties are selling quickly especially in the $600k and below category with the overall days to sell sitting at 39 days.

The month of October was another record month across New Zealand and in Northland. We are still experiencing a combination of low stock and high buyer demand that is seeing good properties selling quickly.  However we have also noted what might be the start of a plateauing of price movement based on what buyers are prepared to spend. This was bound to come and will have to happen at some point as buyers don’t have endless amounts of money to spend. This is also evident in the lower number of multi-offers we are seeing.

Right now however, good prices are still being achieved, and good marketing of a property will attract the best buyers to help with this.

It seems we will continue to have low stock even as we move into Summer, and this is being compounded by the fact that many sellers don’t want to list their property until they have found the right property to purchase.

NATIONAL OVERVIEW: (by REINZ)

Median house prices across New Zealand increased by 19.8% from $605,000 in October 2019 to a new record median high of $725,000 in October 2020; and up from $689,000 in September this year (a 5.2% lift) according to the latest data from the Real Estate Institute of New Zealand (REINZ).

NATIONAL MARKET KEY INDICATORS:

NORTHLAND OVERVIEW: (by REINZ)

“Demand for properties in the Northland region has not subsided with sales volumes up 20.6% in October 2020 from the same time last year – the highest for an October month in 17 years. Median house prices increased 16.5% year-on-year to a new record of $600,000. Investors are keen to increase their portfolio but are finding themselves limited by the low stock levels available. Interest from first home buyers has continued at their increased levels from 2019, however, it seems banks are becoming more cautious and accessing finance is becoming harder for this category of purchasers.

This has simultaneously resulted in an increase in cash buyers in the market compared to 12 months ago, as buyers know they need to be pre-approved if they want to compete in the multi-offer situations. Anecdotally, we are hearing that there are plenty of appraisals being done, but new listings for the region are down -3.9% from the same time last year, largely due to potential vendors being reluctant to sell without a replacement property lined up.” Bindi Norwell REINZ CEO

SUMMARY OVERVIEW AND DETAILED STATISTICS:

Right now, we have a large number of clients thinking about selling but not wanting to list until they find the property that is right for them.  This is going to be challenging as the property that is likely to be right can sell faster than they can potentially sell their own property or they are getting cashed our by another cash buyer as sellers are putting escape clauses in when buyers need to sell.  This means they are losing out to others and not ending up buying the property they wanted.

To help with this we are encouraging our clients to get their properties listed and to sell with the added clause that their property will only go Unconditional when they have bought a property ie. Their sale and purchase agreement is ‘subject to them buying a property’.  This puts them in the best position to buy a property when they do find it and not have someone else cash them out and buy it ahead of them.

It also seems now that most so called economists are coming round to seeing that our market is not going to slow down any time soon with most and even banks now predicting that our market will continue to be buoyant right through our Summer months and most likely Autumn too, as these are traditionally the best selling months of the year.

We have been amazed at the strength of our market and feel for those who are missing out on buying their first property.  If you are a first home buyer we would encourage you to persevere, as your time to succeed in buying will come.

For Sellers the market could not be better with some outstanding results being achieved.

If you want to sell your property give us a call as now is definitely a good time to be talking and looking at the best method of taking your property to the market. 

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

TEAM DAVIS PROPERTIES FOR SALE

REQUEST A PROPERTY APPRAISAL

Please send us your feedback ie are our Monthly Updates giving you the information you would like, or is there something missing, please tell us.  SEND FEEDBACK

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