Wednesday, 29 April 2015

Manager's Comments 28-4-15

March was a big month for New Plymouth real estate. 111 sales recorded, the highest since May 2012, 34 months earlier. This is almost double the average of the last 12 months. In the halcyon days of 2005/6 these were average numbers, but I fear they are unsustainable now. There may be some investors ready to cash up as rents have dropped, but by and large we simply don’t have the available stock to sustain 100 plus sales a month in New Plymouth. We simply don’t have as many sellers. Buyers are much more astute than they were in the earlier run as well. Banks are tighter; caution is the catch cry as buyers look at options much more closely. Formal due diligence is the norm, not the exception. Our market has evolved into a more considered and measured phase. Competition for buyers however is as strong as ever.

John Christiansen

Monday, 13 April 2015

Manager's Comments 13-4-15

As winter starts to bite we reflect on another year of very flat real estate activity. There has been a gradual but quite erratic increase in sales volumes this last year, but there has been no real market change. We still have a shortage of property on the market in New Plymouth, and there are still a reasonable number of active buyers. The Buyers have been very restrained though. Although mortgage rates are as low as ever, and the banks are back into the market aggressively, buyers seek real value and are quite specific about what and where they buy – and what they are prepared to pay. Investors are particularly discerning and when pushed over their price just walk away. Winter will not help this situation. Although real estate is not seasonal, it certainly slows when daylight savings ends. Dusk is early; home buying visits after work are difficult. In this climate daytime open home activity and perfect pricing are key.

John Christiansen