The NZ Herald of September 14th 2011 published in article on page 4 headed “House prices and sales on rise “.This article emphasised that the worth and volume of homes sold on the month of August both showed increases. As has been the trend in the last 2 years, any increases outside Auckland were of an extremely 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 short of 3% in the eight month period since January. Projecting forward, this may result in an expected escalation in median values of around 5% for a long time end 2011.
When reporting on houses for sale in Auckland, REINZ figures lump residences (houses) and appointment/town houses in the same category. The largest group of sales have been in the CBD apartment market that has been deflated for many years. Couple this with some areas of the North Shore and Eastern Suburbs where plaster town houses predominate (for this read “leaky homes”), it is just a reasonable conclusion to believe that free standing houses in good locations are on course to increase somewhere in the order of 10% in 2011.
From the figures on our own sales board, I could say this extrapolation to 10% anticipated growth is all about right. There’s a real shortage of houses for sale in Auckland when measured contrary to the demand houses for sale chester. Our office is observing that for an excellent home in “Greater Ponsonby” we can expect in excess of 100 inspections over a 3 week Auction campaign and 4 or 5 bidders is reasonably normal. Earlier last month (August) we saw two homes attract in excess of 200 inspections over 3 weekends and how many registered bidders exceeded 15 in both cases.
When I compare how many houses advertised for sale in Auckland, particularly in the principal medium of the Saturday Herald Homes supplement, it’s clear that there is a fall in available homes of approximately 40% on the volumes on offer 2 or 3 years ago, the main difference being that there are now approximately double how many 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 escalation in sales volumes was stronger than we had expected. Sales are continuing to trend up with volumes up 5.4% seasonally adjusted in the 3 months to August.
With sales volumes around 24% below historical averages as a percentage of the housing stock, low mortgage rates on offer, and a greater labour market environment, there’s considerable scope for sales to maneuver higher,” he said.
As an industry observer and participant, it’s clear that generally terms the future is bright for those seeking to transact in houses for sale in Auckland, and that some regions (normally clustered across the CBD) will show very positive growth over what has been a gloomy preceding 3 years.