GLOBAL, NATIONAL, LOCAL, YOU |
GLOBAL, NATIONAL, LOCAL, YOU |
Franchise Market Comment
Welcome to our newsletter covering the first quarter of 2009. We trust you find the market research informative.
Bobbie Meyer and Justin Brown.
Harcourts Team Wellington Ltd
The period under review covers the January to March months of 2009. Wellington suburbs from Khandallah South are included in the research. The number of sales in each suburb, the average sale price and the average number of days taken to sell for the 3 month period are compared to the same 3 months of the previous year, 2008.
The number of sales in the listed suburbs was 484, a 13% drop on the 556 sales recorded in the same quarter of 2008, but a 30% increase on the 372 sales in the last quarter of 2008. Suburbs such as Brooklyn, Newtown, Northland, Strathmore and, most notably, the inner city experienced less sales activity than a year ago. The inner city recorded 43 sales against the 108 of the comparable 2008 quarter and continues the trend of low levels of sales in the city evident throughout 2008. Suburbs which experienced increased activity included Island Bay, Karori, Lyall Bay, Maupuia, Miramar, Ngaio and Wadestown.
The average sale price in the average suburb was down 7% on a year ago, a figure which, given the media focus on house prices, should surprise no-one. The only suburbs showing average sale price increases were Khandallah, Newtown, Vogeltown, Wilton and the inner city. No geographical trend evident here. Melrose also recorded a big leap in average sale price but on a small number of sales.
The upper end of the market continues to see less activity, with 19 sales recorded at prices in excess of $1,000,000 compared to the 26 of a year ago. The decline in sales activity in the upper end of the market is put into perspective when we look back at the 2005-2007 period when it was not uncommon to have 40 or more sales in the $1,000,000 plus price bracket.
The average time taken to sell a home in the average suburb was 53 days which has not surprisingly gone out from the 42 days experienced in the same quarter of 2008, but is less than the 57 days of the October to December months of 2008.
In summary, sales activity although experiencing a lift remains subdued, prices continue to ease but homes are selling a little more quickly over the last few months than they were towards the end of last year. As we go to print, our sales consultants report strong levels of buyer enquiry, good numbers of buyers attending most open homes and a return to multiple offers at Tenders and Offer Deadlines which is encouraging. Stock levels are declining which should act to moderate price declines in the months ahead as buyers might well find themselves competing with others to secure a home from a more limited supply of property. In the last report, we tabled the fact that around 70% of properties sold at under the CV level and that trend continues at about the same ratio.
Our expectation is that the sales activity in terms of volumes has probably bottomed, with the likelihood of further price drops being mitigated by increased buyer activity as a result of lower interest rates and lower prices impacting positively on affordability.
For those thinking of selling, be realistic about price to encourage competition between buyers, present your property well, put a high profile marketing plan in place and you should be assured of a positive outcome. For buyers, it is a case of being prepared to act to take advantage of some excellent buys as some vendors sell in order to reduce debt.
If you are thinking of selling or buying, we welcome your call and, as always, assure you of the finest service.
Bobbie Meyer – 027 2315101, 3829485, bobbie.meyer@xtra.co.nz.
