The NZ Herald of September 14th 2011 published in article on page 4 headed “House prices and sales on rise “.The article emphasised that the value and level of homes sold within the month of August both showed increases. As has been the trend over the past 2 years, any increases outside Auckland were of a really modest nature, largely in the 1 – 2% region (measured over the last year).
Houses for sale in Auckland, however showed much greater increases with the Real Estate Institute (REINZ) figures quoted showing median value increases of just in short supply of 3% in the eight month period since January. Projecting forward, this will cause a predicted increase in median values of around 5% for decades end 2011.
When reporting on houses for sale in Auckland, REINZ figures lump residences (houses) and appointment/town houses in exactly the same category. The biggest number of sales come in the CBD apartment market which has been deflated for a few years. Couple this with some aspects of the North Shore and Eastern Suburbs where plaster town houses predominate (for this read “leaky homes”), it is a reasonable conclusion to think that free standing houses in good locations are on course to rise somewhere in the order of 10% in 2011.
From the figures on our own sales board, I will say that extrapolation to 10% anticipated growth is all about right. There is an actual shortage of houses for sale in Auckland when measured from the demand houses for sale chester. Our office is observing that for a good home in “Greater Ponsonby” we can expect in excess of 100 inspections over a 3 week Auction campaign and 4 or 5 bidders is fairly normal. Earlier last month (August) we saw two homes attract in excess of 200 inspections over 3 weekends and the number of registered bidders exceeded 15 in both cases.
When I compare the number of houses advertised for sale in Auckland, particularly in the primary medium of the Saturday Herald Homes supplement, it is clear that there is a fall in available homes of approximately 40% within the volumes available 2 or 3 years back, the key difference being that these day there are approximately double the number of buyers having sufficient confidence inside their personal circumstances to commit to purchase.
Confidence is on a gradual but solid increase.
In the NZ Herald article quoted earlier, ANZ economist Mark Smith said he was surprised by the REINZ figures. “The increase in sales volumes was stronger than we’d expected. Sales are continuing to trend up with volumes up 5.4% seasonally adjusted in the three months to August.
With sales volumes around 24% below historical averages as a portion of the housing stock, low mortgage rates available, and a better labour market environment, there’s considerable scope for sales to go higher,” he said.
Being an industry observer and participant, it is clear that generally speaking terms the near future is bright for anyone looking to transact in houses for sale in Auckland, and that some regions (normally clustered around the CBD) will show very positive growth over what is a gloomy preceding 3 years.No comments