There are numerous reasons why there are fewer properties available in the marketplace at present. Some have been calculated and imposed, like the introduction of the LVR and the Bright Line Test, whilst others have happened by chance – think Brexit and Trump.
But, as the saying goes, ‘sellers choose when to sell, but buyers buy when they need to’. In other words, no matter what, there will always be buyers, so it’s safe to conclude that if there are fewer properties on the market, the contest to buy those available will increase. In this case, the balance will always favour the seller in our sector of the market.
Those sellers who choose to go against the current market trend by putting their property on the market, whilst others choose to wait, are often favoured with an increased probability of achieving a premium price.
That said, the days of ‘the house will sell itself’ are long gone. Today’s vendor needs to invest in a very clear marketing strategy – one that will make their property stand out against the competition and reach the maximum number of potential buyers, bringing them together at a defined time and place to vie for its sale. That’s an auction.
The decrease in volume of sales in May compared to the same period last year is not unexpected and reinforces the statement made at the commencement of this Market Wrap. Also, May 2016 was an extraordinary month for sales when you take a look back at the average number of properties sold per month in the past year – so this figure needs to be taken in context.
As volumes decrease, vendors need to be mindful not to expect any one property to sell for the percentage increase indicated by the year-on-year median – in this case 158%. Going forward, we expect to see small fluctuations month on month, with the general trend continuing to be positive. Remember, though, with less choice, ‘good’ properties, well marketed will continue to realise outstanding prices.
Apart from the odd anomaly, there is little change in these figures month on month, or year on year. What is interesting, however, is that the popularity of sale by negotiation has declined. The tried-and-tested, three-week auction campaign continues to be by far the most popular way – and the quickest way – of selling your property.
At 86% (82% sold on the night, plus 4% sold prior) no other sales method can even come close to the success rate of selling your home by auction. And Ray White Ponsonby’s success rate tends to be higher than our competitors because we try harder on the night, by allowing more time to negotiate a sale ‘on the floor’, rather than passing it in for negotiation at a later stage.
Auctions are up by 10%, and set date of sale is up by 9% – both at the expense of sale by negotiation. Why? Some sellers want certainty and, by applying a fixed date or price, they think they’ll get that. The market will dictate the best price you will receive for your property, and going to auction is the only method of sale that will truly reflect the market on any given day – and that’s why auctions are up by 10% this month.
This map gives you an overview of total sales and median price across the Greater Ponsonby area. Hover over the yellow dots for the statistics on each suburb. To view other suburbs we monitor (such as Titirangi), zoom out or drag the map.
The Rental Market
The demand for quality rental properties remained unseasonably high in May and early June. Coming into the winter months tenants are putting more emphasis on heating and insulation – and, in general, they have become more knowledgeable and more demanding about their rights, especially around insulation. Well presented, well maintained properties are still very much in demand, and they will continue to achieve the best prices and will be the first cab off the rank when it come to the desirable groups of tenants, such as professional couples and families.
