Manager's Comments 11-5-15

The Auckland market continues to get massive publicity as it strides forward and capital gains are reported that are completely out of sync with the rest of New Zealand. Even Christchurch can’t compete with its huge shortages and multi billion dollar government post quake spending. It’s easy to see how sellers could expect some rub off in the local market, and how price expectations could lift on the back of all this hype. Don’t be fooled. The Auckland market is driven hard by a massive shortage of housing. In New Plymouth the supply is easily satisfying the demand. Rents, especially at the top end, have fallen. The Energy sector has shrunk. Farmers are tight at present. Local demand for housing has diminished. New Plymouth prices are steady, flat, showing no real growth. Competition for outstanding properties is good, but price is always a factor for our buyers. They will not pay premiums without competition. Talk to your agent about how we do that most effectively.

John Christiansen

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

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

Manager's Comments 30-3-15

The Aussie cricket team did what great teams do. They lifted their intensity, played at the top of their skill set, and most importantly, they ‘knew’ they would win. They believed. They are cricket’s All Blacks. They find a way to win the tough ones and the big ones. Given the stage, they perform.
Your Harcourts Agent is a similar beast. We train & train. We practice and we study so that on ‘game day’, when there is negotiation in the air, we win. We win for you. We do need some help though. A level playing field. We need to be in the game, just like the sports teams. Take advice from your expert, skilled, fit and focused agent. Get the marketing right, get the pricing right, (or take it away), give us a big game. We will find a way to win for you; just like the All Blacks do for us and the Aussie cricketers do for them. Put us in the game. We know how to win.

John Christiansen

Manager's Comments 16-3-15

The sales statistics for February are out, and once again demonstrate a very flat market. Only 66 New Plymouth sales, median price slips $14k to $373,000.
The competition is not from the active buyers though; it’s other properties on the market. The buyers will buy something, the best comparative value they can find. To make a sale, at some point you need to provide the best comparative value in your niche of the market. Are you positioned to do that?
 
John Christiansen

Manager's Comments 3-3-15

Well deja vu. Oddly we have sold exactly the same number of NP residential properties for 3 months in a row. It seems like Ground Hogg Day when I look at the statistics again. This is actually somewhat expected though; we seem to be going through a period of very steady selling, with unspectacular volumes. Sales are right across the price and location spectrum. Buyers are active in all sections of the market. What they do have in common is short arms and long pockets. Offers are very conservative and their choices are increasing daily. Money is plentiful; many 90% mortgages are again available. I am still confident we will continue to see solid if unspectacular sales numbers through 2015. Capital growth like inflation, seems to be banished from the landscape. Treat any offers with respect, buyers lose interest in difficult negotiations quite quickly, and just move onto the next opportunity.

John Christiansen

Manager's Comments 16-2-15

This market continues to be difficult. New Plymouth & Bell Block reported sales in January (61), are way down on both January 2014 (Down 15), and December 2014 (down 16). Although we continue to enjoy buyer interest, they certainly have this market under control with judicious selection of property, and conservative offers. The last 3 months of 2014 saw a lift in activity, which is yet to materialize in 2015. With more property being listed these last few weeks we hope this activity returns, but so far the buyers are still on holiday.

John Christiansen