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December 2013
As we head into the Christmas – New Year break it is time to reflect on 2013 and what we have
seen in the market in the last twelve months. It has been very similar to 2012 with prices moving
upwards but not at the levels seen in Christchurch and Auckland, but there is still strong demand.
The big event that occurred was the announcement of the LVR (Loan to value ratio) restrictions by
the reserve bank to try and slow down the markets especially in Auckland and Christchurch. Last
week the Reserve Bank has announced new builds will be exempt from LVR restrictions. This is
a wise decision given the huge demand for development that exists, particularly in Auckland and
Christchurch. To jeopardise the construction of thousands of new houses through LVR restrictions
is detrimental to what the Reserve Bank is trying to achieve, and Graeme Wheeler should be
given credit for listening to the building industry and going back on this original stance.
Meanwhile, there are no obvious indications that LVR restrictions are tempering house prices
nationwide. The average national house price now sits at $468,943 – which is an all-time high.
Anecdotally we have seen a slight decline in the number of first home buyers attending open
homes, however this has not affected the number of written sales, which nationally has been
increasing since August.
There is enough demand from investors and other buyers to counter any significant effect on
sales and prices. First home buyers will also return to the market when alternative ways of
securing 20% deposits – such as second tier lending and parental guarantees - are better
understood.
We are also starting to see buyers come in from Christchurch
especially investors who have been paid out EQC money as
well as South Canterbury Finance investors getting their
monies and looking for alternative investments than the bank.
Permanent material homes that have low maintenance
sections are very attractive for the rental market.
What is a QR Code?
I have been asked by people what is that “black and white
squiggly thing” on our advertising, signage and now on my
car. It is a QR code or quick response code which is a bar
code that smartphones such as Iphones can read and then
take you to an internet site that relates to that property. It is
one more way that we can reach more potential buyers to
show off your property.
Timaru Market Statistics.
Month
No. of
Sales
Median Sale
Price
Median Days to
Sell
November
2013
59
$260,000
22
October
2013
59
$255,000
29
September
2013
66
$267,500
26
August
2013
60
$255,000
32
July
2013
55
$268,500
27
June
2013
54
$263,500
33
December 2013
Final thoughts.
Thank you for making my second year in real estate a success. A highlight for the year was
winning the “Harcourts NZ Most Promising Auctioneer”. I love calling auctions and we may
see more of them in the local market for 2014. They work well around the country and get
great results for property owners as well as being an open clear process for buyers.
I hope that you get some time off over the break to spend with family and friends.
The weather may be fickle at times, but there really is no better place to be in summer!
Take care and seasons greetings to you.