Ponsonby News asked Bayleys Ponsonby and Barfoot & Thompson Ponsonby, two local real estate companies to tell us their thoughts.
Bernadette Morrison: Following the extraordinary performance of New Zealand’s residential assets which saw some $500 billion added to values during the first 18 months of the pandemic, some semblance of a slowdown was inevitable.
A cooling of competition amongst buyers has given way to a more measured pace of market activity. When mortgage lending rates began their slow and steady creep upward from record low levels, we saw buyers pause for thought. Now wholesale interest rates have eased back and banks have reduced their fixed offerings, we’re seeing rising enquiry from buyers with confidence in their financial capabilities.
For sellers, the fundamental reasons to make a move persist and there appears to be a better understanding of market dynamics. We’ve seen good, immediate results from advertised price adjustments for those properties which have spent more time on the market.
In the days of the most heightened demand and strong competition between buyers, many were missing out. Fast-forward 10 months, and while there’s still a little hesitancy, there is also pent-up demand from purchasers and this is contributing to growth in open home attendance and enquiry for new listings.
Having enjoyed the spoils of fixing our mortgage rates at historically low levels, homeowners are in a good position to manage the Reserve Bank’s inflation controls and those with equity are increasingly looking to leverage current market conditions. Upscale, turn-key properties with high-quality renovations and good vehicle parking are commanding the highest premiums.
It is fundamentally true that good real estate sells in any market, and our patch continues to largely side-step depressive market factors thanks to location, scarcity of high-value homes and the determination of qualified buyers.
Looking ahead, our locals appear to be feeling more confident after gaining a better grasp on economic fundamentals, with strong employment prospects and safety in the knowledge that residential property is a stable and proven long-term investment. (Bernadette Morrison, Bayleys, Ponsonby)
Chris Batchelor: The local market has had some challenges over the past six months, with stock levels and subsequent transactions down. Over the past two to three weeks we have seen a substantial lift in property sales and off-market deals happening in the area. The Greater Ponsonby area seems to have lifted, and the Wynyard Quarter office is also going extremely well.
Transactions are down, but we all appreciate that good real estate always sells in any market. Many locals tell us that over the lockdowns they looked at their homes potential asking themselves - do we renovate or sell up?
This depends on the property. People are being very cautious around do-ups with the cost of renovating and delays with building supplies, saying that some key developers in the area are very experienced and know what they’re doing. They back themselves (as do we) to be able to create dream properties for clientele in the area. The benchmark and standard of these renovations are increasing yearly, and we are seeing some stunning well-thought-out homes being developed. The demand, no matter what the market, seems consistent in this section of the market.
It’s widely accepted that, if you can, you should buy and sell in the same market. Interest rates came down recently; what affect does this have?
Buying and selling in the same market is always a great idea. Yes, interest rates have come down slightly and depending on who you asked, they believe they will stabilise over the next 6 to 12 months and potentially even fall again towards the end of next year. It is a guessing game, though! It is always best to stick within your means and serviceability and ensure you get sound advice when entering into a new property purchase.
Anything else you’d like to tell us?
Here at Barfoot & Thompson Ponsonby, we are incredibly optimistic about spring and the busy run-up until Christmas. We have signed some excellent new properties that will be coming to the market shortly with opportunities at both ends of the market. We feel the market is levelled, and vendors and purchases are both comfortable with where it currently lies and ready to move on with their property needs. As always, we are here to help should you have any questions.
(Chris Batchelor, Barfoot & Thompson, Ponsonby)
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