Well, what a turn-up for the books. Ray White Damerell Group’s August statistics have bucked the national trend and brought some welcome news amid the doom and gloom of recent real estate figures from around the rest of the country – and the rest of Auckland, for that matter.
Two questions: Why have our statistics bounced back so dramatically, when everyone else’s dropped further? And, will these figures hold over the coming months? There are two factors to consider here.
Firstly, the number of new apartments that have come onto the market has risen in the last month or two – in particular, those developments along the Great North Road ridgeline and in Vinegar Lane – and this has certainly influenced the statistics. Secondly, the strength of the market in our area is a genuine reflection of the continued popularity of this highly desirable part of Auckland.
We predict that, notwithstanding a left field result at the general election, we will witness a continued rise in the number of properties for sale and a holding of prices in the greater Ponsonby catchment in the forthcoming months.
We will have to wait and see whether this month’s 50% rise in total sales is an anomaly or a genuine change in the market. Either way, it is a welcome fillip to sellers and buyers, alike, after the past few months of declining sales numbers. What is certain, however, is that greater Ponsonby remains a very desirable part of the city to live in, and that can only be good for house prices in the area.
At face value, the unchanged median sale price this month compared with July, plus a small decrease in the median year on year, indicates a gentle softening of the market. Our observation, working in greater Ponsonby market on a day-to-day basis, translates slightly differently. We believe that this softening is a reflection of those with properties at the top end – $3m plus – are choosing not to sell at present.
Once again, we see the pattern continue. Properties marketed by auction take fewer days to sell, and remain around the average of 22 days. Sale by the other methods are an indication to us that there is a lower degree of motivation to sell on the part of the vendor, and therefore there is less engagement with such properties on behalf of buyers.
At Ray White Damerell Group we unashamedly celebrate our team’s collective and individual skill-sets in managing the auction process for our vendors. When the real estate industry announces auction success rates of around 50%, we are achieving unbelievable success. Given the slightly lower volumes of properties over the past three months, these recent figures represent some of our best.
Recent media commentary has been rather negative regarding auction success rates of late, and this has certainly had an impact on vendor confidence in selling by this method. It remains a truism, however, that if you wish to increase the probability of a sale at a better price and be on the market for a shorter period, then an auction remains the best method for most property types and values in our sector of the market.
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
It would be fair to say that the run up to the general election has not only affected house sales, but also has had an impact on tenants making the move to secure a new home. As such, August has shown rental properties sitting on the market for longer and tenants happily questioning prices before they view the properties. Most activity was centred on the smaller 1-2 bedroom properties, meaning 3-4 bedroom houses were slower to move. However, as we progress through spring and in to summer the demand will increase.