21 August 2017

July Market Wrap

July saw a fall in the number of properties on the market, which should come as no surprise as vendors and buyers alike play a ‘wait and see’ game until after the results of next month’s general election.


share

9% last month
41 sales
13% same time as
last year

Taking into account the tightening of lending criteria and the uncertainty surrounding the result of next month’s general election, there are no real surprises that the volume of sales have shown a reasonable decline in July compared to the previous month, and a double-digit fall year on year.

Monthly Sales

Median sale price in July 2017

$1,337,000

19% last month
9% same time as
last year

With a drop in consumer confidence and the resulting decline in the total number of sales, the median was bound to be affected. Interestingly, though, we observed strong competition for ‘good’ properties. Conversely, those with ‘issues’ or ‘defects’ need to be sharply priced to attract buyer interest – and to gain finance to purchase.

Monthly Trend

Price Bracket Breakdown

Average days to sell

August 2016 to July 2017

Month on month we witness the vast difference between the short and effective marketing campaigns offered by auctions – typically three weeks – versus the much longer and less direct sales cycle delivered the other two methods. At Ray White Ponsonby we are fully committed and have vast experience in this highly successful sales method.

22 AUCTION
28 SET DATE OF SALE
48 SALE BY NEGOTIATION

Monthly Trend

Auction sales
Set date of sale
Sale by negotiation

Our auction success rate

August 2016 to July 2017

As above, the huge success rate of auctions carried out by our company far exceeds any other method of sale. Historically, a percentage greater than 60 of all properties we market are sold by the auction method – and we stand by this as the most effective way to achieve the best price for a well presented, well maintained property.

Passed in 12%
Sold 83%
Sold prior 4%
3 Average number of
registered bidders

Our listings by sale method

July 2017

One reason auction numbers have fallen a little lately is that the banks are increasingly reluctant to lend on an ‘unconditional’ basis – because of a property potentially having ‘issues’. Properties that are not 100 percent often need a form of marketing that allows the purchaser to insert conditions such as ‘conditional on finance’, thus leaving the seller with a period of uncertainty as and whether their property has actually sold.

60% AUCTION
27% SET DATE OF SALE
13% SALE BY NEGOTIATION

Monthly Trend

Auction listings
Set date of sale
Sale by negotiation

Suburb Overview

July 2017

This map gives you an overview of total sales and median price across the Greater Ponsonby area. Hover over the yellow dots for the statistics on each suburb.

The Rental Market

Winter has seen the number of prospective tenants drop, which is not uncommon for this time of year. Tenants are aware of this and so requests to negotiate on weekly rent have become a topic of conversation, as has insulation and heating. Whilst it is not required that landlords provide heating, and the insulation requirements do not take effect until July 2019, these things can certainly make your property stand out in the crowd, especially when there is more supply than usual. We have also been finding that 1-2 bedrooms properties have been more popular than 3+ bedroom properties lately.