SEPTEMBER 2022 | MARKET UPDATE
Spring surge, albeit subdued
North of the Bridge spring is certainly upon us and with it the seasonal surge in market activity, albeit subdued this year. Our team are commenting on a notable increase in buyer activity both at open homes & auctions.
Auctions remain a favourable way to sell. At Cooper & Co, either onsite or at our Takapuna or newly opened Silverdale auction rooms, 67% of properties taken to auction in September sold.
When taking a closer look at some of the data reported by the Real Estate Institute of New Zealand for September, we need to remember the Covid lockdowns in August and September last year and the impact they had on the comparable period.
Here on the North Shore sales numbers appeared to be up on recent months at 322 and the median price down at $949,000 – however dissecting this data shows an Albany development with over 100 sales recorded for the month – predominantly with sale prices under the one-million-dollar mark. Hence removing these sales, would have resulted in sales volumes of circa 220 and a median sale price of $1.25 million.
The Rodney sales volumes bouncing back above the long-term average whilst the median sale price dipping 3.6% when compared to the same time last year to $1.21 million.
In the Waitakere market, again volumes remaining stable at 271 for the month and prices dipping some 9.2% to $998,000.
Earlier in the month, the Reserve Bank of New Zealand increased the OCR for the eighth consecutive time – with low unemployment & inflation high, this was to be expected. It does however pose challenges as increased borrowing costs make securing finance and debt servicing difficult for some prospective buyers. This combination of rising interest rates, inflation and tighter lending criteria creating hesitancy amongst some buyers and opportunities for others.
The current market proving a more manageable environment to transact and with 10 weeks to Christmas there is time and opportunity to do so.
