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Home Inspection News – Issue 29

August Real Estate Activity 

Lower sales across New Zealand, 6.1% lower than August last year. The lowest number of sales for 7 months were:

Southland –33.2% 62 less sales
Hawkes Bay –18.4% 42 less sales
Taranaki –16.6% 31 less sales

Sales were up in the following areas:
Tasman +12.3%
Bay of Plenty +7.7%
Nelson +2.9%

The main reason for the fall is the lowest number of new listings for the last 3 consecutive months since 2007.

Prices

Median prices in New Zealand from August 2018 – August 2019 are up 5.5% to a national median of $580,000, up from $550,000 in August 2018.

4 regions saw new record prices.
Southland was up 29.2% to $310,000.

Manawatu / Wanganui was up 25.6% to $390,000

Hawkes Bay was up 12.4% to $500,000

Northland was up 10.8% to $507,500

Days to sell

Nationally the time to sell was up 2 days compared to August 2018. It took an average of 39 days to sell. In Auckland the average time to sell was 44 days. In August 2019 nationally there were 5959 properties sold.

Here are the numbers: Over $1,000,000 there were 802 sold = 13.5%. $750,000 – $999,999 there were 992 sold = 16.6%. $500,000 – $749,999 there were 1917 sold = 32.2%. Under $500,000 there were 2248 sold = 37.7%. 

Selling or Buying a Property? 

Then get professional Real Estate help, it certainly pays off. A professional real estate sales person (agent) can be worth much more than their
commission.

The seller (vendor) usually pays for the real estate agents services – marketing the property, negotiating the sale and attending to all the matters that entails.

This can include staging the home, photography, advertising (online and other media), signs, brochures, videos, open homes, valuers, LIM reports, building inspections and so on.

The commission is usually around 2-3% of the sale price which can amount to many thousands of dollars. A good sales agent will frequently get the vendor a better price than the seller themselves could achieve.

This is because they are marketing and negotiating experts. The better price often not only covers the commission but also leaves the vendor with a higher net price from the sale.

Most sellers know this to be true and over 90% of all sales in New Zealand use a real estate agent.

So What About the Buyer?

The real estate salesperson helps the buyer too. They provide a lot of information and assist them in making a buying decision.

Typical information might include zoning, what the neighbourhood is like, schools, transport, recent sales data and so on. Even though the salesperson is paid by the vendor they have to abide by a strict code of conduct as set out by the REA (real estate authority), a government legal body.

The agent’s dealings must be honest and fair. They must disclose to the purchaser any significant information that may impact on the buyers decision. For example if the salesperson is aware a property has a significant defect (eg weathertightness) they must disclose this to the buyer.

Even if the sales person is not aware of for example a weathertightness problem they are obliged to recommend that the purchaser have the property checked (by a building inspector) if the property is regarded as high risk.

The salesperson is deemed a professional and needs to be aware of what constitutes a high risk. It is not a defence for the salesperson to say “I did not know there was a problem”. The REA can discipline the salesperson and his/her agency and fine both tens of thousands of dollars.

For deliberate unprofessional conduct the REA can cancel a salespersons licence and remove their livelihood. Buying and selling a home is a very large financial and often emotional decision. A professional real estate salesperson helps both the vendor and purchaser providing a much smoother process.

 

Home Inspection News – Issue 28

Latest Property Market Update

Early signs of growth in the housing market seems to be appearing according to the July real estate data. Prices nationally are still showing some growth. The median price increased by 1.7% nationally and by 2.4% in Auckland over the past month. The volume of sales also shows upward movement.

Nationally sales increased by 3.7% and Auckland by 6.6% year on year. The numbers were 6,118, up from 5,897 and for Auckland 1,894, up from 1,777. The average days to sell was 3 days longer
nationally now at 40 days. For Auckland also 3 days longer at 44 days. Both are compared to July last year.

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Home Inspection News – Issue 27

June 2019 Property Update

The June residential property sales data was released on 12/07/19. The heading for the data released was – Number of Properties Sold Nationally falls in June, but Prices Keep Rising!

Behind this statement lies a message. The message seems to be that many buyers are holding off hoping prices will fall. The probability however is that prices will keep rising. Why?

Firstly there is a housing shortage especially in major centres like Auckland. Secondly the population is growing due to both internal growth and by net migration.

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Home Inspection News – Issue 26

The May Housing Market

During May across all of New Zealand house prices increased by 3.2% to $578,000 from $560,000 in May 2018. Median prices in Auckland increased by 1.2% from May 2018 and now sits at $860,000.

This is the highest Auckland median price in 2019. At the other end of the scale Gisborne property owners enjoyed a massive 54.4% median increase from May 2018 – May 2019!

Prices in Gisborne increased as a result from a median of $285,000 to $440,000. That was $2,645 a day for every day between the 1st of May 2018 and the 1st of May 2019.

Other strong growth areas were Southland (16.7%), Manawatu / Wanganui (14.4%), Hawkes Bay (9.3%) and Otago (8.2%). The number of properties sold in May was down 7.8% across New Zealand with Auckland the worst down 21.8%.

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The Importance of LIM Reports

What is a LIM report?

A Land Information Memorandum (LIM) report is a summary report of some of the information held by the local council. The report covers one particular property only – land or house and land.

What is in a LIM report?

A LIM report contains information about such things as slippage and potential flooding risk by way of flooding plains. The presence of possible hazardous substances such as Asbestos or soil contamination by pesticides and insecticides.

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Home Inspection News – Issue 25

The Housing Market April 2019

Over the whole of New Zealand house prices in April increased in 13 of the 16 regions compared to prices in March. The areas not seeing increases were Auckland, Nelson and Otago. Days to sell increased slightly from 36 days to 37 nationally.

Auckland increased by 4 days to 41 days to sell. What was noticeably down was the number of sales which year on year were down 11.5% nationally and 16.3% in Auckland. The recent fall in the official cash rate to a record low of 1.5% and the scrapping of the proposed capital gains tax should however give confidence to buyers.

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Home Inspection News – Issue 24

Prices in January 2019

14 out of 16 regions of New Zealand had annual price increases in January. The only ones that did not were Auckland and Canterbury. The number of residential property sales were down year on year both in Auckland and Nationally. The warm sunny weather possibly meant would be buyers were at the beach instead.

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Home Inspection News – Issue 23

House prices were up nationally in December 2018 by 1.5% compared to December 2017

The new median price is $560,000. Auckland also saw an increase but only 0.2% to a new median of $862,000. The Bay of Plenty was the star achiever for December with a new record median price of $610,000 which was a 2.0% increase.

Every region in New Zealand had a price increase in December which was the first time this has happened since June 2017 – 18 months ago. Auckland recorded the highest price for 9 months. For all those that think house prices are going to fall, take a look at this:

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Home Inspection News – Issue 22

October 2018 House Prices

After the lowest level of sales for 8 months in September sales numbers rebounded in October and were around 15% higher than October 2017. This is what was predicted following the serge in listings that has come onto the market.

October was the month when the ban on foreign buyers came into effect. The median house price nationally was up 0.5% compared to September and in Auckland it was up 1.5% compared to September.

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Home Inspection News – Issue 21

September 2018 House Price Sales

September recorded the lowest level of residential property sales for 8 months because of the low number of properties for sale. The numbers were down 3% compared to September 2017. As far as prices are concerned nationally they were up 5.9%. For Auckland prices were the same as September 2017.

While the numbers of sales nationally were down in 14 out of the 16 regions in New Zealand, prices were up compared to September 2017 and 4 regions set record median prices. The 4 were:

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