MARKET UPDATE - Third Quarter 2017

Another above average sales month for Kerikeri and the surrounding areas with 37 sales reported up from 27 in August, but down from 69 on September 2016 (an unusually high month). The median price for house sales was $636,000 in September, which is well above the national median (excluding Auckland) of $452,000. The median house price year-on-year is up 10.6% from $571,000 in 2016 to $631,500 in 2017.  Median prices are up 14.4% year-on-year for Northland among the highest 3 regions in the country. The median price for residential sections in Kerikeri has now reached $230,000 in 2017, up 26.4% from $182,000 in 2016.

Year to date sales volumes are down 23% from 390 in 2016 to 302 in 2017. Residential section sales volumes are down 44% year-on-year from 54 in 2016 to 30 in 2017. Similarly, lifestyle land (over 1 ha) sales volumes are down 49% year-on-year from 41 in 2016 to 21 in 2017. The bulk of the drop in sales volume compared to last year is attributed to low inventory levels of houses under $600,000 and bare land. Otherwise sales volumes are above 2016 levels in higher price brackets, except over $1 million. There have been 16 sales over $1 million, down from 23 at the same time last year.  We are finding that well-presented properties under $600,000 often sell quickly when they become available. We are also finding that some out of town buyers are achieving less than they had expected for the sale of their homes, particularly in Auckland, which is making it more difficult for them to find suitable properties in Kerikeri.

Auction sales across New Zealand are down by 54.5% on last year, driven particularly by Auckland where the market has moved from a strong vendors’ market to a buyers’ market. We continue to advise vendors to be wary of accepting the ‘hype’ of auction as a sales strategy being pushed by some agents. With poor results, unnecessary cost and stress to the vendor occurring more often than not, it brings into question whether there is an element of ‘self-interest’ on behalf of the agents driving this approach universally. We remain consistent about our preferred approach to carefully price properties and position them in the market to attract the most interest. Our unique cooperative team structure ensures that we work with all interested parties to achieve the best result for the vendor often resulting in multiple offers and occasionally above the asking price. We believe in being selective when using the auction strategy to ensure the greatest opportunity for success.

Pop in for a chat anytime to discuss the best methods for selling your property. We offer a FREE, no obligation appraisal and the coffee is always brewing.

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REINZ

March 27, 2016

MARKET UPDATE - Third Quarter 2017