Covid Lockdown Round Two saw no slowdown in the market whatsoever for Damerell Group, with our office recording two incredibly strong months – 65 deals put together in July, 57 in August, and already over 50 in September, with a week still to go.
As reported by Ray White's head office earlier this week, "There's continued momentum of the real estate market. Looking at Ray White's live listings, these are currently 26.04% up on the total number of properties listed in the last 28 days. While the continued number of listings is helping buyers with choice, the depth of purchasers in the market adds to the momentum of the sales numbers, which are currently 41.79% ahead of the same time last year. In real terms this means that we are overselling our current listing bank, and this is adding to the pressure on prices and the availability of stock as a total inventory."
This buying frenzy is no doubt being fuelled by historically low interest rates, coupled with less restrictions around LVR (Loan to Value Ratios). The ensuing buyer demand has squashed days on market and at the same time put upward pressure on property prices, meaning there are simply not enough properties on the market at present to satiate the appetite of people looking for a new home or an investment property.
In the auction rooms last week, Ray White’s auckland-wide statistics returned with an average of 4.5 registered bidders per property, and 3.4 active bidders per property, resulting in a success rate approaching 80% on average. This was fantastic news for all our vendors. And these statistics have certainly been helped by record levels of pre-approved loans (thanks to our partners at Loan Market).
Closer to home, Greater Ponsonby enjoyed an almost 50% increase in sale volumes in August, compared to same time last year, with prices approaching a 10% increase compared to August 2019, and 3% up on the previous month. And hot off the press… two of the eight properties that were due to go to auction this week in our rooms, were sold prior.
If you think life’s been good for our vendors in Greater Ponsonby, take a look at the Western Fringes, where sales volume have gone through the roof, with a 73% increase in sales and a 12% increase in price compared to this time last year. In the auction rooms, we have had properties where there have been 10-plus registered bidders, and properties brought forward selling for in excess of $200,000 over the pre-auction bid.
Across on the North Shore it’s been a similar tale, with a 51% increase in sales volumes year on year, and a massive 14% increase in sale prices over the same period. Demand for property is so high that multi offers are taking place within days of a property hitting the market. Last night saw a 8-way tug-of-war for a two bedroom unit.
To us, the message is clear: If you're thinking of selling, right now looks to be what most would consider the best time ever to do so. Please don't hesitate in reaching out if we can be of service.