25 October 2016

September Market Wrap

Stability In September


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16% last month
52 sales
2% same time as
last year

With the change of seasons, summer is now on everyone’s mind, and there’s positivity in the air. That feeling of optimism is still being reflected in the Greater Ponsonby area – from open home attendance right through to homes going under the hammer.

Certainly, the market is not on the aggressive upwards trajectory that we once might have seen, and we’re in a bit of a holding pattern at the moment in terms of sales volumes. That said, good stock, well marketed is still selling strongly, and that’s reflected in the stats that have come through in September.

 

Monthly Sales

Median sale price in September 2016

$1,432,500

0% last month
2% same time as
last year

Top End Strong. Although the median selling price for the whole of Auckland dropped to $825,000, down 2.1% from its all time high of $842,500 in August, it was still 7% up on where it was in September last year. In Greater Ponsonby, that figure showed an increase of 12.5%, year on year, from $1.3m in October 2015, to $1.46m in September 2016. This shows we are still seeing very good demand for properties in the $1m and $2m plus category. The sale of 14 John Street is a great example of this type of property. It attracted 35 open home visits, 3 registered bidders, 17 bids, and was sold under the hammer for $1.622m, 28% above CV. 

Monthly Trend

Price Bracket Breakdown

Average days to sell

October 2015 to September 2016

One of the indicators as to the strength of the market is the days between when a property is brought to market and sold. The level of promotion utilised through the auction, set date of sale and sale by negotiation processes is the key reason for the difference in average days on the market. Depending on the marketing method, the property is exposed to different levels of buyers - placing them in competition with one another in order to create a premium price result for our owners.

24 AUCTION
26 SET DATE OF SALE
40 SALE BY NEGOTIATION

Monthly Trend

Auction sales
Set date of sale
Sale by negotiation

Our auction success rate

October 2015 to September 2016

Attendance at our regular Wednesday evening auctions at The Sapphire Rooms in Ponsonby Central, is up. Our auction clearance rates are very high and holding steady at around 85% - 90%, compared with only 30-40% achieved by some of our competitors. Some of this has to be attributed to Jason Andrew – Australasia’s top auctioneer, who we fly in from Sydney every week for our auctions.

In the past month, we’ve had three exceptional sales worthy of discussion at our Wednesday night auctions. Firstly there was 19 Chamberlain Street. It attracted 47 visitors at its open home, 3 bidders, 30 bids, eventually selling for $2.46m, 53% above its CV. Then, 134 Hinemoa Street, which had an incredible 125 open-home visitors, 7 registered bidders, 33 bids, eventually selling for $1.535m, 57% above CV. And last but not least, 149 Wellington Street, with 123 visitors, 5 registered bidders, 18 bids, selling for 77% above CV, for $2.05m.

Passed in 4%
Sold 91%
Sold prior 5%
3 Average number of
registered bidders

Our listings by sale method

September 2016

As you can see the auction methodology is by far the most preferred method of sale by our clients.

83% AUCTION
0% SET DATE OF SALE
17% SALE BY NEGOTIATION

Monthly Trend

Auction listings
Set date of sale
Sale by negotiation

Suburb Overview

September 2016

LVR Effect? Because our catchment area is predominantly owner-occupiers, we have not seen a direct decrease in sales due to changes made to control the investor market, such as the LVR. What we have seen, however, is a cooling off of home inspections by speculators, which, long term, is a good thing.

Hover your mouse over each yellow dot to view the total number of sales and the median sale price for that suburb in September.

Rentals. In the Auckland rental market, there’s certainly an under-supply at the moment, definitely in the inner city and fringe suburbs. What that has meant, is that we haven’t really seen the seasonal variation in rental prices we have in previous years, so rental prices are holding steady, and even gone up slightly.

For more in-depth information, please feel free to call one of our team members.