August – a month known for its scatty weather and lack of long weekends.
The REINZ August statistics for the greater Ponsonby area (Ponsonby, Grey Lynn, Herne Bay, Saint Marys Bay, Freemans Bay, and Westmere) show that stock constraints continue to play a role in the upward price pressure on sales, with 51 completed transactions down from 62 in July.
The median sell price for greater Ponsonby continued to inch higher compared with July as well as August 2019. We did, however, see a reduction in the average sell price over the period, which was largely a result of an increased proportion of one and two-bedroom property stock transacting during the month.
GREEN SHOOTS IN THE LENDING MARKET
In the immediate aftermath of the initial Covid-19 emergency, the banking sector was understandably facing a number of significant challenges that effectively put a handbrake on the lending plans of a number of local buyers. I recently spoke to local Ponsonby mortgage advisor Hamish Chandra from Total Finance to understand what lending market trends have emerged over the quarter.
Hamish has a real connection with the area and is about to commence building a new home in Westmere. I asked him to share with us how the lending market was fairing and how buyers can benefit. Hamish says, ”The winter period was the busiest I have been in my twenty years in the lending space. The market has been very active and has been rejuvenated through new ex-pat clients coming home from places such as New York, Dubai, Hong Kong, and London. In addition, many clients who were planning holidays are instead using funds to either upsize, purchase a more suitable property or renovate their existing property.
“There are also first home buyers who are now forgoing their OE.” Hamish adds that lending criteria adjustments can potentially benefit clients right now. “Lending has really gathered momentum of late with historically low-interest rates. In addition, a relaxation of both the LVR rules and also the banks ‘servicing rates’ that are used to test clients’ ability to service their loans are helping more clients to own their dream home. More clients are also looking toward the purchase of a second property as deposit rates make ‘money in the bank’ less appealing.”
Hamish has also seen banks starting to compete again for market share as we move into spring. ”While the banks generally aren’t doing as many seasonal promotions as in prior years, they are proving very keen to work with brokers and their clients to help conclude lending applications, significantly more so than earlier in the year.”
MAXIMISE YOUR SEARCH
A common theme over winter has been ‘plenty of buyers and not enough sellers’. So what can buyers in the current market do to maximise their chances of securing their ideal home? In my experience, purchasing successfully in Auckland is really about the ‘art of the compromise’ - everyone has a list of their ‘must-haves’ when buying property, and it might be that three bedrooms, two bathrooms, and two-car parks are an absolute must. However, many buyers miss out on properties to others who are able to compromise on one or two aspects when purchasing.
Meanwhile, those of us (yes, I’m guilty too) who have pursued perfection end up regretting not buying earlier and making the necessary changes to the property. How often do we say, “If only I’d bought that home in Saint Mary’s Bay I looked at ten years ago?” Often things such as that guest powder room, walk-in robe or pool can be added down the track as long as your core must-haves are being met.
If you would like assistance finding a home, please contact me. We can help you work out which properties currently on the market (through us, our colleagues, and those listed with other companies) will fall into your price bracket and are likely to suit your requirements. By having my associate work through this side of things with you, you’ll save time in your property search, and, as a bonus, we are often able to show you properties that are not yet being advertised.
If you are thinking about selling, I’d be happy to talk with you about the greater Ponsonby market trends relating to your property at any stage.
Thank you for reading.
Charlotte Kofoed, M: 021 241 9394, T: 09 353 1220, www.ckre.co.nz,
E: charlotte.kofoed@nzsir.com
August 2020
Properties Sold - 51
Average Sell Price - $1, 697, 894
Median Sell Price - $1,650,000
July 2020
Properties Sold - 62
Average Sell Price - $1,832, 581
Median Sell Price - $1,625,000
August 2019
Properties Sold - 48
Average Sell Price - 1,776, 229
Median Sell Price - $1,602,500
REINZ statistics for Freemans Bay, Ponsonby, Grey Lynn, Westmere, St Marys Bay & Herne Bay.
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