December Market Overview

The Palmerston North residential market is, in our opinion, at a healthy but not booming state at present. From a volume point of view, there are between 400 and 450 properties for sale in the city. REINZ reports that there were 118 sales in November, down from the 139 sales in October. The medium days on the market is 28 days.

Well presented and well located properties are the sort after ones. Anything needing lots of work isn’t appealing to buyers at the moment. Over-riding all of this is that buyers are particularly fussy at the moment and they are not rushing into buying just anything and if a property isn’t priced right, it will be rejected.

Sales are spread right through the price ranges, with no particular buyer group standing out over others.

Real Estate Agents Authority/ Real Estate Institute of NZ

On the 17 November 2009 we welcomed in the new Real Estate Agents Act 2008. With the new Act came the establishment of the Real Estate Agents Authority. The Authority is a Crown entity, established under the Real Estate Agents Act 2008 to provide independent oversight of the real estate industry, increase consumer protection, raise industry standards and to raise public confidence in the performance of real estate agency work. Their website is www.reaa.govt.nz.

The Real Estate Institute of NZ provides key services to members of the real estate industry- being the voice of the industry, representing the industry with the Government and the Real Estate Agents Authority, education services, and essential statistics services. It is the REINZ statistics that we have quoted in this report.

Marketing

Be positive, leave no stone unturned, market the property as a “hot seller” and you will have no reason to doubt whether you have done enough marketing to place your property in the “hot to sell” category. We are happy to discuss all options for you to make an informed decision. You need not rush this decision.

The Manawatu Property Press is the main source of activity for buyers actively looking. Any advertising must include this publication in the marketing mix.

The Manawatu Evening Standard is frequently used to source passive buyers. By this I
We mean people who are not actively looking but may casually look in the paper and see a “wow” property.

We would be delighted to assist if you require any further information.

The Spotlight is on the Suburb of Riverdale

Although Riverdale is not a council official suburb, for those whom live there and those aspiring to, it is very much a suburb in its own right.

Riverdale is made up of approx 839 residential homes and many being built in the eighties when it was the must place to live. As a result there is a diverse range of real quality homes, with still a surprising number of original owners still living in them.

Riverdale has remained an area where the owners have real pride in their properties and as you drive around the streets you can admire the well kept grounds.

We think this is one of the instant appeals, coupled with schooling, river walks, and amenities close at hand.

These properties are always in high demand, which is brilliant , making this suburb a good sound investment.

To date in 2009 there have been 55 property sales. Bayleys are very pleased with their contribution made to this total.

A recent sale at 11 Ruha Street highlighted the area interest with a staggering level of internet activity and an offer being received within 24 hours of the property press being released and sold at the asking price shortly thereafter.

Have a Happy New Year

Christmas Cheer Promotion

My Christmas Cheer to You

With Christmas now just a few days away, our attention is definitely more focused around the festive season. Retailers Christmas advertising campaigns are in full swing with what appears an endless supply of options, and if your home is anything like mine my children wanting one of everything that’s on offer.

I enjoy the Christmas period with watching the kid’s excitement during build up and then some time to relax and catch up with family and friends in the New Year.

Our local real estate market has been steady all year with good activity in all price sectors and there appears no sign of slowing down with good levels of inquiry from genuine buyers. I am certainly keen to see this continue through well into the New Year, assisting vendors to achieve a good hearty result quickly.


Christmas is a time for giving & sharing

I would like to play my part in the Christmas cheer by offering $1000 Worth of Grocery Vouchers* to those homeowners choosing to list their property exclusively with me during the months of November through to
31st January 2010. These vouchers will be redeemable upon an unconditional sale.

Your friends, family and work colleagues are also welcome to take up this offer, so feel free to pass on this good Christmas cheer.

As a dedicated professional and family man it’s a pleasure to offer this, and I welcome your support through the remainder of the year and into 2010.

Have a very Merry Christmas & Happy New Year and look forward to hearing from you soon

Warm regards

Barry McKean
Bayleys Residential Advisor
Mob: 021 372 422 Bus: o6 350 6062
Email: barry.mckean@bayleys.co.nz

Local Bagpiping Talent

To be successful in any business the support & encouragement from your entire family is so very important. Yet this works both ways and this weekend my son Cameron played for a local wedding in Palmerston North what a wonderful job he did. He made a Dad very proud

Please enjoy

Getting the engine warmed up…

By ANZ chief economist Cameron Bagrie

Confidence continues to build especially in the metropolitan centres. Weighing against this is a further lift in fixed mortgage lending rates, with the likelihood of more to come.


Mortgage rates are heading up the higher way, with the mortgage curve continuing to get steeper, and it’s not hard to see the positive slope continuing. Three to five year mortgage rates are now above their decade averages, and it would be surprising to see too many people at all going into that part of the curve. Those who fixed two years ago at 9.1 percent and one year ago at 8.2 percent who are coming up for renewal will still be looking at decent savings even at the two year part.

What is clear is that more and more people will be heading into floating and fixed short term mortgages, giving the RBNZ the kind of traction they have not had in years. How long before the current mortgage curve starts to weigh on the housing market?

Household lending growth rose 0.3 percent in the month, which is still quite soft considering the pickup in the housing market. This suggests while new lending growth for housing is rising, a lot of people are paying down their existing debt. Confidence may be picking up, but it is certainly not translating into enough of a conviction to get out and invest just yet.

House sales rose 2.7 percent in September, to be up over 43 percent a year ago. Sales have more or less held on to this level of activity over the past six months, albeit with still an upward trend. In saying this though, the number of sales is still well down from the peaks experienced between 2002 and 2007. This better illustrated once house sales are adjusted for the size of the housing stock, which shows turnover still below historical averages.

However, putting this aside, it is still clear that a shortage of listings is continuing to support prices and ensuring a reasonably quick time to sell. The REINZ median house price rose to $350,000 in the month – up 6.1 percent a year ago. The median number of days to sell held constant at a reasonably low number of 34 days. Auckland still appears to be leading the pack in terms of price growth, with the regions median selling price rising 8.3 percent compared to a year ago.

Building consent issuance is now beginning to stabilise, although at this stage the pace of recovery is nothing to right home about and we need to remember that the level remains extremely low. Never the less, we are expecting further rises over the coming months.

With the housing market turnover improving, it is not at all a surprise to see the residential consent issuance begin to rise. There has been a strong historical relationship in the past, and we see little reason to why it wouldn’t continue in the future. The rebound in housing has a course seen wholesale swap yields rise, necessitating an upward re-pricing of mortgage rates, and it looks to be a case of the chicken and the egg between the two.

Residential property prices in NZ cities rise above last years values

Ray Clancy Emerging - Emerging Property Markets

A shortage of properties for sale has pushed real estate prices in many parts of New Zealand higher than they were a year ago, according to the latest published figures.

Values in the main centres have recovered since earlier this year and most are now above what they were the same time last year.

Auckland's residential property values for October were 2.5% higher than they were a year ago, up from the -1.1% the previous month, the data from QV shows.

In Wellington values were up 1.6%, Christchurch saw an increase of 1.3% and Dunedin was up 4.3%. Only Hamilton and Tauranga failed to improve on last year's values, down 0.1% and 1.4% respectively.

Provincial values have faired less well. With the exception of New Plymouth, Palmerston North and Nelson, all the centres are down on last year's prices.

QV valuation manager Glenda Whitehead said a shortage of properties, especially in urban areas, had led to more buyers than available properties, meaning many sold for well above expected values.

While it is clearly a good time to sell, especially in the main centres, needing to buy again in a market which has a shortage of available properties for sale will also be putting some people off,' she explained.

She added that overall market activity remained below normal spring levels. Sales numbers had remained relatively static in the past few months, and there was little evidence of a rise in new listings in most areas.

'The continued shortage of properties, especially in the main urban areas, is leading to a continued imbalance in the market with more buyers than available properties. As a result our valuers are seeing many properties sell for well above their expected values. These demand-based price increases are likely to continue until the balance in the market changes,' Whitehead said.

Meanwhile there has been a lacklustre response to the government's shared equity pilot scheme, a free financial top up scheme for modest income earners to buy properties in more expensive locations that they might not otherwise be able to afford.

Official figures show that only $1.6 million of the allocated $18.4 million has been used so far in the programme which is due to end next July

Goodbye to low mortgages next year

By JAMES WEIR - BusinessDay

Floating mortgage rates could jump as soon as April next year, rising to more than 7 per cent in a few months as the Reserve Bank starts to lift official rates, according to some economists.

Others say the Reserve Bank will move "late and hard" from September next year, lifting rates fast and in big bites from 2.5 per cent to 5 per cent or more, pushing up floating rates.

With longer term lending rates already rising and forecasts for higher unemployment, house prices are expected to flatten out after their recent bounce.

The Reserve Bank held official interest rates steady yesterday at 2.5 per cent and reiterated that rates would remain low until the "second half" of 2010.

Some bank economists expected the central bank to start lifting rates by April despite market pricing earlier in the week suggesting a strong chance of a rise as soon as January.

After the Reserve Bank's statement, the kiwi dived to US71.74c yesterday, down from US75c two days earlier.

However, some economists still expect the currency to move up toward US80c over time, as the US dollar weakens further.

ANZ National said it expected the Reserve Bank would move rates from 2.5 per cent to about 5 per cent, starting from September. The Reserve Bank would wait for other central banks around the world to lift their rates first, which would be a sign of confidence about the global recovery.

ANZ National Bank chief economist Cameron Bagrie said most people were borrowing on floating rates or fixed rates of six months to a year because of the much higher cost of a longer term fixed rate.

The Reserve Bank would be comfortable with that trend because when it did finally start to lift rates, "they will get a lot of bang for their buck".

Borrowers were better off being on shorter rates, although they might be grumpy when rates rise later next year.

Mr Bagrie said financial markets had been overly optimistic about a rapid economic recovery.

The recent rebound in house prices was a "dead cat bounce" and masked weakness behind the scenes with rising unemployment and already rising fixed interest rates. House prices were likely to be flat in the next year and land prices were likely to fall.

ASB Bank said if the Reserve Bank got confirmation that the economy was recovering, rates would jump from 2.5 per cent to 4 per cent in three moves, starting in April. That was likely to push up floating rates 150 basis points, from 5.7 per cent to more than 7 per cent.

ASB Bank economist Jane Turner expected the Reserve Bank to lift rates in April, rather the second half of the year because of the pick-up in domestic demand, especially in the housing market.

"The best way to slow the housing market is to raise interest rates," she said.

RESERVE BANK'S VIEW

* Official cash rate held at 2.5 per cent until the second half of 2010.
* Inflation "comfortably within the target range over the medium term".
* Housing market has partly recovered from price falls.
* Signs of a gradual lift in household spending.
* Government spending is supporting activity.
* But business spending is weak and credit growth is low.

Homes Sell Themselves

Every day I hear from vendors that homes sell themselves. You walk through the front door get the warm fuzzy feeling tingling up your spline and you just know this is the one.

And yes it does happen from time to time like this but believe me its not that straight forward. The home may have sold itself but it hasn't yet achieve that premium price yet.

A professional agent will thrive in this arena, with a prospective purchaser buying on emotion rather their head. So now its not just about making the sale but about how much of a premium can be achieved exceeding a vendors expectation.

However there are those other homes for some unknown reason that don't present their features & benefits quite so well to potential purchasers and this is where good agents have the skill & ability to expose them to a broad audience.

The August median time period to sell in Palmerston North was just 20 Days and demand for good real estate continues to increase.

Good agents are an investment in all markets and will always achieve a premium in that given market.

Barry McKean

Spending up in Palmerston North, but down in Manawatu District

By GRANT MILLER - The Manawatu Standard

Spending in Palmerston North is up, but down in Manawatu District after a dairy payout drop.
Core retail spending in the city was up 5.5 per cent in the July quarter against the same quarter last year.
In the Manawatu District, it was down 7.1 per cent after low international prices and the exchange rate pushed dairy company Fonterra to forecast a reduced payout ahead of this season of $4.55 per kilo of milksolids.
The spending difference is also marked in the total spending measure, which includes motor vehicle sales and servicing, according to statistics supplied by Palmerston North City Council.
Total retail sales in Palmerston North were up 0.5 per cent in the quarter, compared with the same period last year, but down 13.1 per cent in Manawatu District.
Total spending in the city and district was $475.9 million in the quarter, down 1.3 per cent on last year.
The most recent figures for Palmerston North show buyers are picking up properties quicker. The median number of days to sell a property dropped below 50 in the three months to April, falling to just 26.
However, the number of sales fell from 425 in the May quarter to 380 in the August quarter, according to the Real Estate Institute.
City council economist Peter Crawford said house sales volumes had been slowing since a burst of activity in March and May. The market could be constrained by lack of supply.
According to the Real Estate Institute, the median price for a farm in the Manawatu and Wanganui region in the August quarter was $1.275 million down from $1.86 million.
The median price for a lifestyle block in the region dropped from $345,000 to $330,000.
However, farm and lifestyle block prices appeared to have increased in the past month.
Median prices in the August quarter were higher than for the three months to July this year.
Motor vehicle-related spending in the city and district was down 11.7 per cent.
More guests were staying longer in Palmerston North commercial accommodation, but there was a decline in Manawatu District.

Is the first offer the best?

Often we hear the first bite of the cherry is the best, and this can be true on many occasions. However reading the market and taking advice from your trusted agent is crucial.

At present the Palmerston North Real Estate Market is really humming along in all price sectors so being hasty may not be the best strategy.

Exposing your property to a good solid and well prepared marketing campaign could mean the difference to thousands of extra dollars in your pocket. With a little patience allowing time for all prospective buyers both passive and active to be view your home will create competition should there be multiple interest.

The extra time with the marketing of your property exposing it to these passive buyers will pay off - these are the people who are not in market to purchase but fall in love with it at an open home and just have to have it - Generally they pay the most.

Marketing is like fishing with a net, the bigger the net the more fish you catch.

My advice is to at a minimum have a least one open home before accepting offer.

Barry McKean
Bayleys Residential Specialist

UK Preview a great place to market

The Palmerston North property is attracting a high number of ex-pats and new immigrants. The large employers such as Massey University and Mid Central Health are some of the key components for these people deciding on good old Palmy as their new home base.

Bayleys have recognise that in the current work climate, these many ex-pats are planning to return to New Zealand and in addition, British citizens are now an increasing proportion of our immigration population.

Bayleys have invested considerable resources in promoting our publications and website in the UK, by both hosting and attending expos and farming seminars within the UK and recently through the opening of our Bayleys office in London.

As a result, Bayleys have a major presence within the UK market and subsequently have had many successful sales from this exposure. Bayleys can also provide clients with access to our unique resources through our international alliance with Cushman Wakefield.

Our next UK Preview magazine is released on the 10th October with 5000 copies being distributed to those attending the opportunities expos in London and Manchester.

If you would like your property exposed to the world at a very affordable marketing investment ie Eight Page is just $150 plus gst either call me at Bayleys Palmerston North or Email

Barry McKean

Bayleys Residential Specialist

Do you buy or sell first?

Wow you thought buying your first home gave you a workout, wait until you buy your secondhome! There’s twice as much to think about, this time round as you’re not just buying but also selling. To make matters alittle more interesting, matching those possession dates so that all parties involved moving schedule coincide can also add to the complicity.

You only have two options – buy first or sell first. Both scenarios have pros and cons.

Selling first has lots advantages. For starters, you’ll know exactly how much you’ll net after your sale is complete which will help determine the price range you reinvest into. Selling first will also enable you to make a much stronger offer as you won’t have to make it conditional upon selling your current home.
On the downside, you will only have a limited amount of time to find your next home unless you decide to rent. As a result, you may settle for something that’s less than perfect or paying a premium for a property that has everything you want but that’s over priced. You may also have to be flexible when it comes to moving dates.

If you’re buying a very specific property that only comes up once in a while, you may want to consider buying first and arranging a longer settlement so that you have lots of time to sell your home. Of course the pressure well be on so you’ll want to price your home at a price that will attract lots of buyer interst immediately. Arranging some additional finance can also give you a bit more flexibility for the settlement.

The market will help you determine whether buying or selling first is your best option. In a buyer’s market when there’s lots of selection, people generally prefer to sell first so that they have a bit of breathing space. In a seller’s market when homes are harder to find and go quickly once they become available, it’s preferable to buy first. One thing’s for certain though, get some professional advice from the team at Bayleys real estate before you make the decision.

Barry McKean
Bayleys Residential Specialist

Preparing For a Successful Open House

When you’re preparing your home for an open house, do a walk-through each room. Place things such as photos and items that have sentimental value but don't add to the decor out of sight of buyers. Reading material and other things that tend to make the room look cluttered are also better kept tucked away.

This will also make prospective buyers feel less like they are intruding into someone else's home. Rather, they’re more likely to feel as though they are going through THEIR new home. Shallow, wide boxes that fit under the bed are great because they can be stored out of sight. Items placed in them are easy to locate: there's no need to dig through a deep box to find what you are looking for once your home has been sold.

If the plants in your garden aren't flowering at the time of the open home, go to the supermarket and purchase enough flowering annuals that can be set among the greenery of your flowerbeds to give the impression of a blooming garden. It may just be that the open home falls at a time when your plants are not at the right stage to bloom. Flowering annuals are just a suggestion but set the stage well for first impressions. Of course, make sure the grass is cut the day before the open house.

It’s amazing what a difference a coat of fresh paint can make to improve the appearance of a room. It will not only look better but it’ll smell better too. Some strategic painting outside can also make a difference far beyond the effort and expense involved.....something to think about.

Baking bread or biscuits just before the open house will leave a pleasant aroma that will remind people they are in a "home" rather than a house. Remember, the sense of smell is a powerful tool which can work for or against you.

Finally, you may choose to have on offer some tasty treats while prospective buyers are viewing your home. It's surprising how your property will stand out with this point of difference if buyers are looking at a lot of other properties on the same day.

Barry McKean
Bayleys Residential Specialist

A shortage of houses?

By ANZ chief economist Cameron Bagrie

There’s no shortage in housing across the country. Rising migration and population growth mean current consent issuance isn’t keeping pace with demand, but there is enough excess supply from previous years to cover the imbalance.

Regional data reveals excess demand intensifying in Auckland, but areas outside of the main centres have an overhang of supply. There is widespread talk of a shortage of housing, and this has been used as one justification for house prices moving up. ANZ believe that much of the commentary in relation to the housing supply misses a key point in terms of the housing market correction. This cycle is concentrated as a land price adjustment as opposed to a physical housing story. The majority of the price appreciation of the boom appeared in the former, and while land may be in a limited supply in Auckland, this is certainly not the case nationally.

But, ANZ nonetheless feel the need to respond to the analysis presented in relation to the housing supply, particularly to it driving up housing prices and creating a “mini-boom”. Building consents have collapsed to levels last seen in the 1960’s. The number of dwelling consents issued in the last three months ran at a rate of 14,000. Yet, net migration has accelerated to an rate of 26,400. Throw in a population growth of around 35,000 a year and applying the average household size, suggests there is a demand for over 20,000 new dwellings over the next 12 months.

Based on this it’s easy to see that an excess demand situation for housing. On the face of it, it would apply an upward pressure on house prices. Indeed there have been anecdotes lately that new listings have been getting scarcer. The rebound in the number of house sales has resulted in a lower market ‘inventory’ from the equivalent of over 12 months sales at the end of last year to less than 8 months currently.

So are we really heading for a housing shortage crisis? To answer this, it’s important to distinguish between the flow and the stock. Based on recent flows, there is no doubt that excess demand exists, but we need to take into account the fact that this comes after several years of excess supply.

The upshot - there is no housing shortage nationally. A simple snapshot of one year of demand relative to supply is too simplistic; you need to look at the cumulative picture over several years. There has been enough excess supply in the past few years to absorb the rising demand for housing in the short term.

So what about the limited number of listings? We suspect this is due to the broader de-leveraging dynamic across the economy. When you buy a property, the tendency is to trade up and typically take more debt. This is where altered lending appetites and reduced job security could be playing a role. In this environment, the bias is to stay put. In practice this should influence supply (listings) and demand (the decision to buy). Hence, we shall be paying close attention to prices, which should remain capped if this dynamic is at play.

Bary McKean
Bayleys Residential Specialist

Mortgage borrowing strategy

by ANZ chief economist Cameron Bagrie

While the housing market is recovering, it is off remarkable lows, and in itself is insufficient to alter our favoured borrowing strategy – which is being patient and taking advantage of low six month rates.

Our view is that aggressive competition for deposits is keeping pressure on borrowing rates. With the Rerserve Bank of NZ ‘telling’ banks to get more funding in place, there will be two broad consequences.
First, competition for deposits will remain intense, particularly for term funding. This will keep the curve steep. If depositors are being rewarded, then of course, the borrowers have to pay.

Second, this will remove the temptation for banks to fund aggressive demand for credit by issuing short-term debt, as was the case during the previous upswing. Reduced fuelling of the housing market via aggressive credit demand (and supply) should reduce the need to raise the Official Cash Rate as aggressively over the next cycle.

Collectively, these are key structural issues that impact heavily as we weigh up the relative attractiveness of different borrowing rates.

In this environment, coupled with intense political pressure that is being placed on the financial services industry, we maintain our bias towards short-term rates, the six month rate in particular.

Barry McKean
Residential Specialist

Benefits of Instant Email Notification

The Internet has changed the way many people live their lives, and the process of buying a home is no exception. Buyers previously visited real estate offices and thumbed through large book of homes or brochures to find out what’s on the market. Today, its instantly updated online.

Prospective purchasers generally filter in their preferences and browse through a variety of homes. However this can become frustrating though as subsequent searches force you to sift through homes you’ve already looked at just to discover the latest ones that have hit the market.

Many agents now offer a service that emails you properties which match your criteria so you won’t miss out on your dream home. Although there’s no obligation, it’s best to stick with one agent in order to build a strong relationship so they'll be better able to understand your needs.

It’s important to get acquainted with the market so you’ll be confident enough to move quickly when your ideal home finally comes along. You’ll want to provide your agent with a detailed list of criteria that clearly specifies your needs and wants -- Such as:

- What style of home do you prefer?

- Are the schools in the area important to you?

- What’s more important: the type of home or the location?

- What are the minimum number of bedrooms and bathrooms?

- Does the house have to be in ‘move in’ condition or are you prepared to fix it up?

It’s important to establish a good strong line of communication with your agent so they’ll be in tune with your likes and dislikes. Be sure to provide feedback when you receive property updates as it'll help your agent better understand your preferences. It’s a gut wrenching feeling to miss out on the ideal home due to miscommunication so make sure you're on the same page.

Finding the perfect home isn't always easy but the right system and clear communication will make it much more enjoyable! If you know of someone who's house hunting, have them drop me a line so I can send them full updates of homes that match their criteria as soon as they hit the market! Instead of playing the frustrating game of telephone tag, they'll be able to sit back and enjoy the process.

Barry McKean
Bayleys Resisential Specialist

Residential Market Holds Firm

The residential real estate market has held firm in the past month with July prices and turnover tracking June figures almost exactly in the latest statistics released by the Real Estate Institute of New Zealand (REINZ) today.

For the first time, the Institute’s data this month is accompanied by the REINZ Monthly Housing Price Index, a new stratified housing price measure which gives an average of sale prices for common groups.

The Index was developed with the Reserve Bank of New Zealand and Institute president Mike Elford says the addition of these statistics will give an even more accurate analysis of house price movements at different price brackets and therefore a more complete overall picture.

“The better data we have, the more credible the information.”

July’s median house price of $340,000 is the same as June 2009 and also identical to July 2008. It is just marginally down on the $345,000 in July 2007 and well up on the median prices for the years 2000 through to 2006 which ranged between medians of $170,000 to $312,500.

Volumes have been similar too with 6,014 properties sold in nationally in July 2009 compared with 6,040 in June. This figure is well up on the 4,489 sold in July 2008.

“The market has certainly recovered well from the lows of mid-2008,” Mr Elford says. “You wouldn’t call it brilliant, but there are positive signs such as more listing stock.”

There were no significant shifts in the numbers of homes sold regionally although the Wellington market was a little sluggish with 618 sales in July 2009 compared with 674 in June 2009. Manawatu / Wanganui by comparison increased sales from 300 to 328 in the same period.

Another positive sign of recovery is the length of time to sell a property.

In July 2009, the median number of days to sell a house nationally was 37. This compares with 58 days in the corresponding period in 2008. The figure for June 2008 was 41. The number of days dropped sharply in Southland from 49 days in June to 35 days in July. Northland dropped from 72 to 51, Waikato / Bay of Plenty from 56 to 47 and Otago from 55 to 40.

Individual markets have their own stories to tell.

Mr Elford says the 4.51 percent increase in median house prices for July 2008 to July 2009 in Auckland (from $421,000 to $440,000) is a sign of an improving market.

There was significant growth in Southland with a 10.46 percent jump from a median house price of $172,000 July in 2008 to $190,000 in July 2009. A good increase was also seen in Taranaki which rose 5.69 percent from July 2008 to July 2009 with median house prices going from $265,000 to $280,100 – a sign of regional business confidence, Mr Elford says.

Bucking the positive trend was the Central Otago Lakes district which fell from a median of $565,000 in July 2008 to $411,000 on July 2009 – a drop of 27.25 percent.

“This is probably a flow on from the international economic markets. Foreign investors tend to liquidate property investments in Queenstown as a result of the global recession,” Mr Elford says.

From a price band point of view, there has also been little movement from June to July. Around the same numbers of homes sold in the under $400,000, $400,000 to $599,000, and $600,000 to $999,999 brackets but there was a small slump in the $1 million + segment from 161 homes sold in June to 125 in July. This is still a better performance than July 2008 when just 109 properties over $1 million were sold.

Mr Elford believes the consolidation seen in the market over the past few months will continue with more stock being listed.

“I think we’ll see some improvements with the seasonal adjustment going into the spring months,” he says.

Residential Highlights Manawatu/Wanganui

The median price for a house in the Manawatu/Wanganui district was up at $224,250 in July (June 2009: $221,750; July 2008: $233,750). 328 houses sold in July, up on the 300 sold in June (July 2008: 230).

The median sale price for a house in Palmerston North City increased to $277,000 in July. (June 2009: $270,000; July 2008: $272,500). 134 houses sold (June 2009: 126; July 2008: 112).

Sales volume was up in Manawatu Country with 31 houses sold (June 2009: 20; July 2008: 25). The median price rose to $220,000 from $209,000 in June (July 2008: $235,000).

The median sale price in Manawatu was up at $246,500 in July (June 2009: $240,000; July 2008: $260,000). The number of sales was up with 243 houses sold (June 2009: 220; July 2008: 165).

60 houses sold in Wanganui City in July, up from the 58 sold in June (July 2008: 44). The median price was down at $164,000 from $172,500 in June (July 2008: $187,500).

The median sale price in Wanganui increased to $175,000 in July. (June 2009: $172,500; July 2008: $185,000). 85 houses sold, up on the 80 sold in June 2009 (July 2008: 65).

The market optimism is great and just seems to get better which is brilliant for our home owners. This level of positive media reporting is continually reestablishing the much needed confidence in the New Zealand public that Real Estate is a sound long term investment.

Barry McKean
Bayleys Residential Specialist

Selling - The small things make all the difference

It is important to realise that buyers never negotiate a price for a home and then decide if they want to live there. Before price becomes a relevant issue, buyers will decide if they like the home and whether or not it suits their needs.

It is often the smaller things that make the difference when you put your Palmerston North property on the market. Real estate salespeople will advise on where to focus your efforts. Below are suggestions on how to prepare your property for sale and maximise your return on your property.

11 WAYS TO MAXIMISE YOUR RETURN

1. Remove the clutter. You end up walking through tracks of furniture in living areas that make the house feel hemmed in and small. Be ruthless and get rid of all the non-essentials. You are not only preparing for a move in a few months' time, but aiming to show your home off to its best advantage.

2. Fix and remove any signs of water damage. Even if you remedied the situation several years ago, tell-tale water trails give buyers the perception there's still a problem.

3. Clean the exterior with a high-pressure waterblaster and create a good impression from all aspects. There's often one side of the house that doesn't get the sun as much as the others.

4. Make outdoor areas appear inviting. More people see value in houses that offer outdoor living on terraces, decks, balconies and in courtyards. Spartan neglected outdoor living areas are unwelcoming.

5. Tidy and mulch garden areas. Neat landscaping is really important, particularly around outdoor living areas. It makes as much impact as kitchens and bathrooms.

6. When selling a new home, buyers like an up-to-the-minute kitchen and bathroom. However, if people are buying an older home with a view to improving it themselves and adding value, as long as these areas are serviceable, they're fine. Don't bother putting a new bench in an old kitchen.

7. Musty areas need to be well-aired and dehumidified before the open home. Burning a perfurmed or citronella candle in the musty area can help get rid of odours. Bunches of fresh flowers and bowls of fruit add colour, perfume and impact.

9. Clever buyers will check behind the curtains for mildew. Get drapes dry-cleaned and spruced up ready for the open home.

10. If you're unhappy with your furniture or art, then consider renting. It's a smart thing to do and more and more people are taking this option when selling. Several companies offer attractive furniture, accessories and art for short term hire. They can style your home to maximise its impact during the open home period. Talk to your agent for details on these companies.

11. Put the brightest light bulbs you throughtout your property-to make it bright. This can make a huge difference to the appeal of the property.

Presentation is essential. It is vital that you make a lasting impression in the buyer's mind.

Barry McKean
Bayleys Residential Specialist

When is the best time to sell

Everything has a season – including selling your home. Listing at the right moment could mean more money in your pocket.

Traditionally, spring/summer are the hottest seasons for real estate, with sellers energised by the warmer weather and gardens are looking fabulous with new growth making it a great time to show your home. At this time we see a larger number of properties coming to the market which is great,but prospective purchasers do have a greater selection to choose from.

If you decide to sell in the winter months there is a lot less competition and may get a better price. Another plus is buyers in winter are less likely to waste your time or draw out the settlement.

Of course, there is no perfect date or time of the year to sell as there are always purchasers - people transferring,marriage, separations, immigration etc.

The best advice is you should pay attention to your local housing market and try to list during a seller’s market, when there will be more competition among buyers for your home – which can mean a premium price, a quicker settlement and fewer conditions on the offer.

This is the window of opportunity we are in at present - A SELLERS MARKET

With Banks starting to how signs of increasing their interest rates this week, I am sure will also start to influence the urgency of buyers.

However with spring just around the corner things may change to a more balanced market rather quickly.

Barry McKean
Bayleys Residential Specialist

Confident Palmerston North Market

The Palmerston North property is again establishing itself as a great place to purchase homes. Prices are soaring up, with an average home now costing buyers about $294,000.

That's an improvement of $30,000 from the latter part of last year, when the median sale price for our city had dropped to $261,500.

Those of us whom work in the industry have been seeing this recovery for some time and these new figures from Quotable Value confirm this.

This trend is not just isolated to Palmerston North but is nation wide with houses prices increasing again by 0.7% in July for the third consecutive month.

With the media at last reporting a more positve note, Im sure this renewed confidence will result in seeing more properties coming to the market in the next few weeks.

Barry McKean
Bayleys Residential Specialist

Private sales good strategy or not?

I understand why people will give it crack selling privately,and in most cases its to save on paying an agent commission.

But the question is "is this the best strategy?" Generally people start by putting a sign out the front of their property & then list on the trademe website. Some people do manage to sell – others start to get annoyed very quickly with tyre kickers or ridiculously low offers. Even those that did sell, you have to ask the question – did they end up getting the very best price possible for their property.

For those whom manage to sell did they save money or did it cost them in thousands $$$ by not getting the best price the market had to offer. Our aim at Bayleys is to always achieve a premium price for your property,exposing it to a broad audience then creating a competitive environment from those interested buyers.

At present properties are selling within just a couple of weeks(Buyers are generally more interested in property new to the market)this is all done with the minimum of stress and with vendors ending up with more money in their pockets – even after paying a commission.

Anyway – let me ask you – when people look at buying a used car privately, what do you think there expectations are – that’s right they are looking for a bargain and not to pay the best price.

THE SAME APPLIES TO REAL ESTATE

Barry McKean
Bayleys Residential Specialist

Good times for home sellers

The local Residential property market in Palmerston North is humming along at an unprecedented rate. The number of home sales at present are really only being hampered by the lack of available new properties to sell.

Our current market conditions are definitely somewhat different to that of just 12months ago where the supply of properties for sale outstripped the number of buyers however today demand for properties by purchasers now exceed the number of properties available.

My take on the market as it stands and to get some real fizz going, is we now need to see more properties in the price band from 250k - 650k. The reason is simple at present potential purchases have little or no motivation to move as they have nowhere to move to.

The residential property market is like a big Ferris wheel we all need to get back on and have a good time.

The more homes that come available in the mid range the better for all concerned - those with lower priced home have something move on too which in turn installs confidence in the upper price ranges and developers of new home packages.

Whilst the current conditions remain sellers are having a field day with many property sales exceeding vendors expectations through multiple offer situations.

My advice is if anybody was considering selling the time is now and make the most of the large number of buyers available.

Barry McKean
Bayleys Residential Specialist