Ray White Warkworth
White Light Market Report - June 2011 Issue
Real estate, the current market, the readjustment of housing prices and, the overall affects these are having on the real estate industry, remain a popular topic from intimate dinner discussions to front page in national media.
Have the affects that the global and domestic economics had on the local real estate market caused New Zealanders’ love-affair with property to wane? Will Government’s continued tinkering with KiwiSaver create uncertainty amongst investors, steering them back to property, which has had proven results over time, even during the bumpy rides? Will there be any real estate agents, or agencies left, if the decline in numbers experienced over the last twelve months continues? Have house prices dropped enough to satisfy analysts?
It’s June already and the calendars tell us that winter is here. Historically, for many, this means a quietening in the market while we hibernate a little until September arrives and listings come flowing back to the market. Why should this be? The reality is that our winters aren’t that harsh and let’s face it - if you like a property in winter, it’s a fair chance you are going to absolutely love it over summer.
At present, the buyers are still out there and frustration is mounting at the lack of properties available to look at. Confidence is slowly but surely returning to the market and sales volumes are again on the rise while Auckland house prices are nearly back to the levels of 2007, provincial cities and towns continue to struggle but that is changing as confidence gains momentum. There are good, positive signs of recovery in the market, however it is still a little patchy.
Over the last few months, new listings have not come to the market as readily as would normally be expected. Many of those that have, were snapped up quite quickly, provided the vendors were realistic with pricing expectations. On the other hand, a good percentage of sales have been made on properties that have sat on the market for an extended period and only after that time, for various reasons, have they become attractive to buyers.
In time, the shortage of quality listings available will put pressure on prices as buyers compete for properties. It is the classic tale of ‘supply and demand’. However, buyers are far better educated now and most will not sacrifice quality for price. Far too many properties have outstanding issues in relation to their construction, degree of completion and finalisation of paperwork, to compete successfully in the market. Vendors of these properties can be compromised quite severely if they are lucky enough to get to the negotiation phase of a sale.
While house prices may not have dropped low enough to satisfy some financial analysts, it would seem unlikely that they will drop any further or even continue to remain at the current level as confidence in the market lifts.
So, where to for KiwiSaver? It has been far more successful than at first anticipated, but just how successful has it been. Since its introduction four years ago New Zealanders have placed $8.7 billion in KiwiSaver, however according to Brian Gaynor (NZ Herald, June 4) the Crown has contributed $3.3 billion and employers $1.6 billion. Growth of the fund will slow significantly due to the Crown’s reduced commitment announced in the budget. Tinkering with the fund may well affect how it is perceived by investors, which could bode well for the property market.
As we mentioned last month, sales successes reported in North Rodney so far this year still resemble a roller-coaster ride.
Two of the rural/lifestyle properties sold above CV and only two undeveloped lifestyle sites were sold during the month. Just a note of caution when looking at the ‘Days on Market’ numbers.
These are accurate as reported to REINZ, however they can be skewered when vendors switch agencies and therefore the count reverts to zero. This can often make a significant difference and there are properties in the table on the back of this newsletter where this has occurred.
Residential house sales for North Rodney - May 2011 RS = Residential Section
X/S = Cross Lease
| Property Address | Sale Price | Days on Market | Bedrooms | Land Area M2 | 2007 CV | Last Sale Price | Year | |
|---|---|---|---|---|---|---|---|---|
| Algies Bay | Mahurangi East Rd | 658,000 | 6 | 4 | 1,040 | 700,000 | 642,000 | 2008 |
| Mariners Gr | 375,000 | 57 | 2 | 665 | 430,000 | |||
| Mera Rd | 510,000 | 288 | 6 | 759 | 570,000 | 347,500 | 1999 | |
| Mera Rd | 568,000 | 5 | 3 | 894 | 630,000 | 500,000 | 2009 | |
| Leigh | Albert St | 335,000 | 13 | 3 | 809 | 430,000 | 323,000 | 2005 |
| Pakiri Rd | 285,000 | 42 | 3 | 938 | 370,000 | 335,000 | 2005 | |
| Matakana | Green Rd | 600,000 | 97 | 3 | 809 | 740,000 | 390,000 | 2004 |
| Omaha | Kokopu St | 1,050,000 | 4 | 642 | 1,015,000 | 1,000,000 | 2010 | |
| Omaha Dr | 765,000 | 230 | 3 | 556 | 795,000 | 800,000 | 2010 | |
| Pakiri Pl | 601,000 | 4 | 593 | 820,000 | 315,000 | 2007 | ||
| Taumata Rd | 640,000 | 59 | 2 | 800 | 800,000 | 800,000 | 2008 | |
| Te Mana St | 565,000 | 50 | 4 | 450 | 350,000 | |||
| Te Mana St | 675,000 | 42 | 3 | 480 | 635,000 | 270,000 | 2006 | |
| Te Mauri Pl | 840,000 | 377 | 3 | 450 | 825,000 | |||
| The Southern Isle | 670,000 | RS | 559 | 670,000 | 189,000 | 1996 | ||
| Point Wells | Harbour View Rd | 1,325,000 | 1,970 | 1,105,000 | 700,000 | 2005 | ||
| Sandspit | Sandspit Rd | 492,000 | 12 | 3 | 809 | 720,000 | 220,000 | 1995 |
| Snells Beach | Apollo Pl | 400,000 | 379 | 3 | 821 | 460,000 | 295,000 | 2003 |
| Awatere Pl | 420,000 | 3 | 4 | 606 | 520,000 | 520,000 | 2007 | |
| Brampton Rd | 480,000 | 406 | 3 | 666 | 570,000 | 585,000 | 2006 | |
| Brampton Rd | 575,000 | 18 | 2 | 0 | 570,000 | 35,000 | 1992 | |
| Kauri Cres | 576,000 | 39 | 4 | 607 | 670,000 | 555,000 | 2004 | |
| Mahurangi East Rd | 427,500 | 52 | 3 | 868 | 480,000 | 46,500 | 1981 | |
| Warkworth | Belmont Pl | 522,000 | 299 | 4 | 606 | 540,000 | 550,000 | 2007 |
| Bertram St | 460,812 | 85 | 3 | 896 | 420,000 | 135,000 | 1995 | |
| Blue Gum Dr | 429,000 | 77 | 3 | 760 | N/A | |||
| Blue Gum Dr | 125,000 | 68 | RS | 2,617 | 260,000 | 125,000 | 2011 | |
| Blue Gum Dr | 240,000 | 99 | RS | 601 | 230,000 | |||
| Campbell Dr | 315,000 | 35 | 3 | X/L | 380,000 | 370,000 | 2008 | |
| Earls Way | 199,000 | RS | 648 | 245,000 | 210,000 | 2007 | ||
| Falls St | 375,000 | 83 | 2 | X/L | 395,000 | |||
| Great North Rd | 350,000 | 3 | 964 | 385,000 | 180,000 | 1997 | ||
| Hexham St | 540,000 | 78 | 5 | 947 | 420,000 | 206,500 | 1999 | |
| Jade River Pl | 199,000 | 328 | RS | 664 | 250,000 | 270,000 | 2007 | |
| Lilburn St | 432,000 | 31 | 3 | 804 | 405,000 | 435,000 | 2008 | |
| McKinney Rd | 147,391 | 309 | RS | 612 | N/A | |||
| Walton Ave | 550,000 | 67 | 3 | 727 | 550,000 | |||
| Woodcocks Rd | 210,000 | 35 | RS | 3,000 | N/A | |||
| Wellsford | Armitage Pl | 188,000 | 256 | 2 | 809 | 245,000 | 145,000 | 2004 |
| Port Albert Rd | 305,000 | 300 | 3 | 1,229 | 335,000 | 63,240 | 1996 | |
| Wi Apo Pl | 239,000 | 91 | 2 | X/L | 250,000 | 220,000 | 2005 | |
Rural house sales for North Rodney - May 2011
| Property Address | Sale Price | Day on Market | Area (Hectares) | Description | 2007 CV | Last Sale Price | Year | |
|---|---|---|---|---|---|---|---|---|
| Ahuroa | Ahuroa Valley Rd | 209,000 | 227 | 1.712 | Bare lifestyle Dairy Farm, subdividable | N/A | ||
| West Coast Rd | 1,900,000 | 79 | 129.7000 | 2,320,000 | N/A | |||
| Algies Bay | Mahurangi East Rd | 890,000 | 1.0 | 1,275,000 | 200,000 | 2003 | ||
| Leigh | Ti Point Rd | 2,650,000 | 2.86 | 2,500,000 | 280,000 | 1998 | ||
| Matakana | Govan Wilson Rd | 550,000 | 106 | 2.8920 | 570,000 | 260,000 | 2004 | |
| Matakana Rd | 735,000 | 282 | 2.47 | 485,000 | 170,000 | 2001 | ||
| Warkworth | Falls Rd | 745,000 | 77 | 1.1480 | These two properties were in a mainly residential | 780,000 | 140,000 | 2003 |
| Viv Davie Martin Rd | 735,000 | 107 | 1.0200 | lifestyle subdivision 2kn from town | 770,000 | 210,000 | 2003 | |
| Sandspit Rd | 445,000 | 36 | 1.0 | Residential Section | 485,000 | 125,000 | 1995 | |
| Wellsford | Burma Rd | 650,000 | 361 | 54.1180 | Grazing block | 750,000 | 958,420 | 2008 |
| Waiteitei Rd | 470,000 | 260 | 1.4990 | Developed lifestyle 1980's dwelling | 500,000 | 30,000 | 1988 | |
Disclaimer
N.B. Market statistics based on unconditional sales recorded with REINZ during the prescribed period. In preparing this document we have used our best endeavors to ensure the accuracy of all the information provided. We accept no liability or responsibility for any errors or inaccuracies and recommend that all recipients make their own enquiries to verify any information given.