Rodney North Market Report
The Residential and Rural Sales Numbers graph on the bottom right side of the page shows a very interesting pattern over the period, November through to February for the last two years. Following September 2014, residential sales numbers rose sharply over October/November then dipped slightly in December, falling well away in January and then rising to the highest month recorded for the year in February 2015.
Last year the sharp spike in sales numbers was a month later, in November. However, the pattern since then has virtually paralleled the previous year, only in slightly lesser numbers. So far, February has shown the greatest difference in recorded numbers being down 46.5 percent on February 2015.
The difference in recorded numbers has no bearing on the state of the market in North Rodney, excepting to show the tightness in available properties to sell. There is no shortage of buyers with access to money and, with the Reserve Bank dropping interest rates, slowly followed by the banks, it would appear that there could be many unsatisfied buyers in the market for some time to come.
While rural/lifestyle sales for most of the 2015/16 year consistently tracked at nearly double the sales made over 2014/15, even the graph for this sector shows the trend from December through to February has been nearly identical, as have the numbers achieved, again mainly due to the lack of stock in the current market.
The Maungaturoto/South Kaipara area showed, in the main, a similar tracking of residential sales as the North Rodney graph excepting that they experienced an unusual spike in sales in December 2015. Comparing this area, year-on-year, February 2016 residential sales were down just 14% on February 2015, but the number of rural/lifestyle properties that sold for the same month were double the 2015 figure.
While Auctions are still popular and their successes are still flowing, the percentage of sales throughout North Rodney that are being made by this method has dropped significantly since they reached an all time high of 43 percent of sales recorded in October 2015. November recorded 30 percent of sales were made by auction and then in December it was 18.6 percent, January 16 percent and February 18.4 percent.
The quarter going from July-September 2015 showed that auctions accounted for 26.75% of residential sales whereas the last quarter shows this has fallen to 17.7%.
It may well be that many salespeople, and owners, have convinced themselves that due to the competitiveness of buyers in the marketplace, the auction process is not quite so necessary to achieve a premium price for properties.
On the subject of prices, like the rest of Auckland and many parts of the country, the median price for houses has risen in both North Rodney and the Maungaturoto areas – some areas by more than others. Suburbs where we do have enough sales numbers to make the comparison and show the difference in the median price from February 2015 to February 2016 are: Omaha – $1,335,000 to $1,435,000 (up 7.49%), Wellsford – $373,750 to $400,000 (up 4.0%), Snells Beach – $560,000 to $698,500 (up 24.73%) and Warkworth $607,000 to $712,000 (up 17.3%). As you can see from these figures, Snells Beach has been the biggest mover over the year.
The residential sales for North Rodney were reasonably well spread with both Warkworth and Snells Beach showing nine sales each, Wellsford six, Omaha five and the other nine shared between Algies Bay, Leigh, Matakana and Point Wells.
Of the twelve residential sales in the Maungaturoto area, five were within the Maungaturoto township, three in Ruawai, where there has been increased activity over recent months, and two each in Paparoa and Kaiwaka.
As we mentioned last month, these small rural communities are really feeling the benefits of the Auckland market spreading out – probably moreso than any other ‘cycle’ we have experienced before.
The rural/lifestyle markets of both North Rodney and the South Kaipara have continued to be quite buoyant and there is a real resurgence in interest for lifestyle living. Most purchasers are looking for those 1-5 hectare blocks to satisfy their dreams, but even then to a previous ‘residential’ homeowner, 5 hectares (12.5 acres) laid out before you can look quite daunting. However, dreams are what we sell and there continues to be a demand.
Number of Residential & Rural Sales 2015 – 2016
Disclaimer: Market statistics based on settled sales recorded with CoreLogic NZ where sales from ALL sources are recorded. In preparing this document we have used our best endeavours to ensure the accuracy of all the information provided. We accept no liability or responsibility for any errors or inaccuracies and recommend that all recipients make their own enquiries to verify any information given.