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Auckland property prices rise with the temperature

The usual spring buoyancy came early to Auckland’s property market this year, with an August result that saw the first year-on-year median price increase in six months. The rise of 1.4% to $852,000 is welcome news for vendors as we embark on a busy quarter. Bindi Norwell, Chief Executive at REINZ, says that after six months of flat Auckland prices, it’s positive to see an increase as we head towards spring.

In terms of regional differences within the City of Sails, Manukau had a solid rise of 10.1% - the highest of the old super city boundaries for the month. Properties under $650,000 are selling quickly and homes under $800,000 are also in strong demand in certain areas. It’s no surprise that great properties continue to sell well, and a high proportion of these homes are being sold by downsizers looking for less square meterage or garden to look after.

School zones are more important to a purchase decision than ever, meaning that once again location is critical for many families – or those thinking of starting a family – when deciding where to search for a home.

If you’re in the market to buy, vendors are being generally pragmatic in negotiations and are trending towards accepting offers if they are close to their ideal price. Investors have been a little slower to catch up and may still have higher price expectations. And while finance is still available, banks are tightening up their lending criteria and any recent confusion over the OIA changes should become clearer for purchasers within the next month.

Source: REINZ, September 2018

No hammer at auction? No worries!

As the spring property market heats up, so do the number of home placed for sale by auction. The excitement and atmosphere at an auction are one of the high points of the sales process, especially if you’re holding it onsite on a stunning spring day.

While auctions remain one of the most popular methods of sale, due to their enhanced marketing and scheduled auction date, many vendors are disappointed if their home doesn’t sell under the hammer on auction day. If this happens to you, don’t despair – a high proportion of properties marketed through auction campaigns sell in the days and weeks after the auction. It’s just a matter of having faith and working your way through the process, all of which your Professionals salesperson can help with.

There are numerous reasons why your home may be passed in on auction day – it could be that the perfect buyers who have their hearts set on your home simply aren’t in the position to bid at auction. Another common occurrence is that the right buyer has only just embarked on their property search or may be days off from starting to peruse listings. Fresh buyers come onto the market all the time, giving you a new pool of prospective purchasers daily.

Of course, if you want to ensure that your home has the best chance of selling post auction, there are some conversations you can have with your agent. Revisit price expectations – was it too high for your area, for your home, or its potential? Did open home feedback tell you that there is an issue that is off putting to purchasers? This is often something that is simple and cost effective to fix. Have a think about the type of buyer most likely to purchaser your property. Does the way your furniture is displayed encourage them to envisage themselves in this home? You may want to look at decluttering or even staging some rooms.

Hopefully by the time you’ve had these conversations with your salesperson, that post-auction negotiation process has kicked into action and the sold sign has gone up. And if you do many some changes to your property, price or positioning, then it won’t be long before success arrives.