Local Property Update
With Mike Pero Real Estate Millwater
So, we’ve had a month of sales strongly impacted by COVID-19 lockdown rules, which meant for nearly half the month viewings were not allowed. What is interesting is that even with that half month of activity, sales for the area are still down on normal activity in terms of sales volumes. This can be attributed to the ongoing shortage of listings locally, a situation also being seen throughout the country.
What we did see for the month was a solidification of the medium sales price above the $1.4M mark. While we saw a record high median for August at $1,603,000, we would suggest this is probably more distortion based on low sales volumes and a mix of larger than normal houses being included in that low sales volume. That said, we now have a market where a good four- bedroom single-level home can be expected to sell for around $1.5M and we expect, based on recent demand, that this will continue to be the case for a few months to come. Expect the median to float in the $1.4 to $1.6 range for a few months, dependent on sale mix.
Speaking of what is coming, at the time of writing we are still hoping for a reprieve from level 4 jail, with a move to level 3 looking likely. This means private viewings can recommence, although we will be waiting for level 2 for open homes. We anticipate the small number of listings currently on the market will be snapped up quite quickly at level 3, with strong sales prices likely. The Government has indicated it is prepared to spend to prop up the economy again, and the Reserve Bank has delayed plans for interest rate rises so we see no immediate reason for there to be any slowing down of the local market.
We are expecting that this lockdown period will have left many market participants with time to consider their options going forward. It is likely that once again this will be a cue for some to want to increase the size of their property (or wine cellar). We anticipate some will want to sell up and head out of Auckland, being disheartened with either the local market or the ongoing lockdowns. It seems unlikely that there will be any significant sell down of property caused by vendors suffering financial distress, nor do we expect any large divestment of rental properties.
We do see that some vendors who were considering a sale this spring may now be considering delaying this to the new year. While we can understand some concerns over issues such as timelines, there really is plenty of time left to prepare, market and sell a property before Xmas and we anticipate with the shortage of property for sale currently and the solid demand in the market, those who do sell this year will be rewarded with strong sales prices.
As always we are available to discuss your property needs or thoughts, either in person (when allowed) or via phone. For those considering a change we strongly encourage you to be in contact, as there are often options you may not have considered, particularly around the timing of a sale and settlement.
021 665 423
About Mike Pero Real Estate Millwater
Grayson and Sarah live and work in Millwater and know the market extremely well. Their clients attest to their enthusiastic and professional approach as well as the high value proposition that the Mike Pero Real Estate brand provides.
Clients appreciate that because they are locals they not only have an in depth knowledge of the current market but also strive to make a fabulous impression by delivering optimum results.
“We are proud to be the business owners of Mike Pero Real Estate Millwater, servicing the area from Millwater to Long Bay and across to Albany."
- Grayson and Sarah
Contact us at Mike Pero Real Estate Millwater for more information on residential sales in the Millwater area.
Local Property Update
with Mike Pero Real Estate Orewa
At the time of writing this article we hope we will be dropping down to alert level 3 on Wednesday, 22 September. The latest Real Estate Institute (REINZ) statistics show a somewhat fragmented month for August 2021 due to the country being in lockdown. See the table beside this article.
When we come out of alert level 4 we can expect to see a fresh flurry of new listings and buyer activity. As with past lockdowns, these have created pent-up activity. With viewing restrictions under levels 2 and 3, I thought it would be helpful to outline some important points on how real estate agents must operate. There could be some slight changes down the track as the government relaxes or tightens the way we must operate.
Naturally at level 4 we cannot conduct any viewings. At level 3 a maximum of two groups per day can view a property at separate times and no open homes are permitted. At level 2 we can conduct private viewings and open homes up to a maximum of 50 people. Agents must ensure strict health requirements are in place including contract tracing, regular sanitising of common areas, physical distancing and measures in place to allow for physical distancing. For the average three bedroom home, depending on its size, it may be practical to have no more than 15 people at a time in the property. At this point it will be mandatory that you wear a mask and sanitise at all viewings, open homes and inspections. This time can be a very unsettling for homeowners, some of whom may be elderly or immune compromised, so we take steps to ensure that viewings are contactless if possible.
We are not far away from Christmas, less than three months away in fact. When you are looking at buying or selling you should keep the Christmas period in mind. If you want to be sold and moved out of your current home by Christmas you should be lining up an agent as soon as possible and ready to be on the market in the coming weeks. Solicitors are normally closed from around 23 December to mid-January. If your settlement could be close to Christmas or in early to mid-January, please check with your solicitor to see what dates they close and reopen for the holiday period.
On a personal note, I am very proud to have cracked the $2,000,000 mark for two separate properties in a row in Orewa. These happened during level 4 using an online auction for one and offers received electronically for the second. The first property received an acceptable pre-auction offer just prior to lockdown and we held the online auction with 14 registered bidders who were all phone bidders. I want to thank the 13 other Mike Pero Real Estate agents who helped manage each online bidder.
Finally, let’s hope we come out of lockdown soon. I know many businesses and people are suffering. Please support your local businesses and give your friends and family a call. We can all do with a lift of spirits during these trying times. Take care and stay safe.
021 215 9718
About Mike Pero Real Estate Orewa
We are highly professional specialists with extensive experience marketing homes in Orewa, Red Beach, Puhoi, Wainui and the surrounding suburbs. We know these areas like the back of our hands and commit to deliver more, go further and operate with the highest integrity.
I love helping my clients achieve their real estate dreams. I put my comprehensive knowledge of the local real estate market, providing them with accurate data on relevant market trends, and giving honest assessments on the value of their property.
I fully utilise my strong negotiation skills for the benefit of my clients in getting them the best deal possible. My substantial career experience in negotiating complex deals with multinational companies, is brought to my role in real estate to ensure my clients get their desired outcome.
I find that success in residential real estate is all about client satisfaction. A key skill to achieving this is my determination to ensure clients are kept fully informed throughout the process.
Contact us at Mike Pero Real Estate Orewa for more information on residential sales in the Orewa area.