Monday, 16 September 2013

Market steady with little sign of growth

Managers Comments 15.9.13 Our market is steady and showing little sign of growth in value or number of sales. August saw a very slight increase in sales, up 5 over July, and the median price up 3.8%, both figures negligible, well within our normal monthly variations. The buyers are still active, but they are also very much more wary of the many factors that will impact on this market in coming months. Interest rates will rise, it’s just a matter of when. More listings and therefore more buyer choice will come with spring and summer, which always happens. Banks, governed by the new Reserve Bank regulations, are now forced to be more selective in who they loan to. All this adds up to a very definite buyer’s market. To be quite blunt, the longer buyers wait the better off they will be. More choice, greater certainty over borrowing costs, but little if any added to the price because of capital growth meantime. What does this mean for our sellers? It means that we need to take the opportunities that arise. It means that Auction, with the present relative stock shortage, is a real option to consider. It also means that waiting offers no advantage. We have to deal in the now because this is how it is at the present time. John Christiansen