Rodney North Market Report
Since our June newsletter the media have continued to report on the real estate market with an unabated fervor.
It’s hard to envisage a newspaper without a sensational, attention-attracting headline about the market. One wonders how the writers can conjure up so many ways to say basically the same thing or, present the same data.
In their defence, the market has been bullish for an extraordinary length of time and kiwis are infatuated with real estate and the market.
The New Zealand housing market, probably with good cause, seems to be under the spotlight constantly and there are as many theories as to how to bring it under control as there are vegetables in a good homemade vege soup. Last month, friends of ours went to Canada for a vacation. One of the first headlines they saw in the Vancouver Sun newspaper read, ‘Property Transfer Tax Could Disrupt Deals Yet to Close’.
Guess what? Property prices are too high in Canada and according to the media, foreign investors are going to be hit with a 15% tax on purchase. This will be implemented soon and there are concerns.
In a recent visit to Melbourne there was a news item on television which disclosed that the city was experiencing the highest number of homeless people sleeping in and around Flinders Railway Station, than had ever been seen before. They are at a loss as to how to curb the situation.
We mention these two stories above because there seem to be those in our media and those of various political persuasions, that would have us believe that rapidly rising house prices & homelessness are issues that are unique to New Zealand – they are not!!! Something else that is not unique to our country is the difficulty and, sometimes the diversity, of grappling with finding solutions to these problems.
House Hunting Key Tip:
Don’t be afraid to turn the shower on to try the water pressure.
While many regard September 1 as the first day of spring, the season doesn’t officially begin until the vernal equinox which is never at the exact same time each year, but falls at a specific moment usually on September 21 or 22, in New Zealand.
So, spring is nearly upon us and, with the end of winter imminent, buyers and sellers will be readying themselves for the seasonal surge of new listings that usually enter the housing market around this time.
Winter is traditionally a quiet period for the property market however, this was not particularly the case this year in either the Rodney North or Maungaturoto area markets, which are our local markets. As many readers are aware, from previous newsletters, Rodney North covers the area from Puhoi in the south to Wellsford and Pakiri in the north, coast-to-coast and, the Maungaturoto area covers from Kaiwaka to Ruawai, mainly west of State Highway 1.
Over the last quarter (June-August), Rodney North has seen 148 residential sales transacted in what have been fairly consistent months, as can be seen on the graph over. Due to a national shortage of listings to sell, this result is ten percent down on the same quarter for the last year but, month-on-month, higher than many of the spring and summer months preceding this quarter.
The difficulty in obtaining listings to sell was far more evident in the Rural/Lifestyle sector of Rodney North where sales numbers were down a whopping forty-five percent on the same quarter last year, from 89 to 49. (A telling tale on the graph over).
Residential sales in the Maungaturoto
Maungaturoto area were slightly higher for the quarter (June-August) this year than in 2015 with numbers increasing slightly, from twenty-five to twenty-eight, an increase of 12 percent and, indicative of the property market moving out more to the rural fringes.
Rural/Lifestyle sales for this area also remained consistent with thirty-five transacted in the quarter compared to thirty-eight in 2015.
While property prices have continued to rise, there is evidence that these rises are not as dramatic as has previously been experienced. Snells Beach, which had a median price of $789,000 for the quarter, finished with a median price of $812,500 in August. Warkworth had a median price of $730,000 for the quarter, rising to $769,000 in August and Wellsford had a median price of $488,000 for the quarter, rising slightly to $488,500 in August.
Median prices drop significantly when you get out to the Maungaturoto area where it currently stands at $280,000 for a residential dwelling.
In the main, properties are selling well above the Capital Values allocated to them by Quotable Value in their 2014 assessments. Many, by well over 50 percent. Capital Values will, in line with the market, have large increases when next assessed in 2017.
As with the Auckland Central markets, one million dollar house sales are now a common occurrence in Rodney North, particularly in coastal areas, although Warkworth township and Snells Beach have both had sales in excess of $1 million in the last month or so. Highest prices have been achieved in Omaha ($3.8 million and $3.1 million) and Sandspit ($3.65 million).
Number of Residential & Rural Sales 2015 – 2016
R/S = Residential Section X/L = Cross Lease U = Unknown
Residential Sales for Kaipara District – A selection of recent sales
R/S = Residential Section X/L = Cross Lease U = Unknown
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 endeavors 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 inquiries to verify any information given.