Millwater & Milldale Property Update
With Mike Pero Real Estate Millwater
So, a year ago during our first lockdown, I don't think anyone would have predicted that the local property market would be at the point it is now. We’ve just seen two months in a row where the Millwater median sales price has exceeded $1.4M. Another month or two at this level would imply a new normal in the local market, or maybe abnormal would be a better description. This suggests a 24% median price increase on a year ago, although the annual change in rolling 3 monthly average (not reported here) is around 20% and is probably more reliable.
That means the median price for a Millwater house has increased by $277,500 in the last 12 months. This has no doubt influenced the feeling in the community and the nation around wealth and spending power. Some old heads will be saying the selling price is only relevant to what you are spending to buy. In the past, traditional paths when selling in Millwater were to build again in Millwater, downsize locally, move elsewhere in Auckland, leave Auckland for other parts of NZ or move to a retirement home.
The latter of these is still relatively open and simple, with a number of developments around the Hibiscus Coast providing a range of pricing and lifestyle options. The others options have become increasingly difficult and are contributing to the low numbers of local properties for sale. Transaction volumes for March were closer to expectations for a normal month and were better than for March 2019 but the average of 30 days to sell is the lowest we have ever seen in Millwater, clearly representing the discrepancy between supply and demand.
Building again in Millwater is rapidly becoming a dying option, with very few sections available with easy access to schools and shops. Those that are available are hard to justify with high build costs and long lead-in times. Downsizing locally has also become more difficult as incredible pressure has come onto the entry level and smaller housing options, with even decent townhouses now going for over $1M on average.
The overall pressure in the housing market means that most of Auckland has gone up in price and we hear that finding another area offering a similar style of housing and lifestyle to Millwater is difficult without spending even more money.
Moving outside of Auckland has unfortunately become less financially rewarding than it was some years ago, with the traditionally easy choices of Tauranga, Hawkes Bay and even Northland taking jumps in price beyond the growth Millwater has enjoyed. To put it in perspective, Hawkes Bay’s median price has gone from $290,000 in March 2014 to $711,000 in March 2021. That's a 145% increase in the same time that Millwater increased by 70%. Northland has increased in that time by 122% and Bay of Plenty, including Tauranga, by 120%.
The good news for those considering relocation out of Auckland is that you spend actual money not percentages so, while the best time for moving out of Auckland was 2016/2017, your Millwater money will still go a decent distance in other parts of New Zealand. Local median prices and those from throughout NZ are not always directly comparable, as Millwater remains a higher quartile suburb. It may give you some solace to know that in dollar terms, selling a median-priced home in Millwater and buying a median-priced home in the following areas will leave you with the stated amount of money left over: Hawkes Bay $706,500; Northland $707,500; Bay of Plenty $595,500; Nelson $735,500; and Tasman $616,500.
So, to answer the often posed question as to why there aren't more properties for sale locally despite the high prices; local potential sellers are starved of options to buy again and currently, most are not willing to take the risk of selling and then being unable to purchase. With the market in its current mode, those who buy prior to selling are often being rewarded with winning on two properties until they sell the original. We are now seeing some of the mad buying pressure in surrounding areas come off and some properties being passed in at auction and then being priced. This means there are more opportunities becoming available.
Over the coming months we will bring you some options from around the country, specifically for those who are considering a move away from Auckland, hopefully increasing your understanding of what is achievable elsewhere. In the meantime if you have any questions about real estate, please feel free to get in touch for an obligation-free discussion.
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 for more information on residential sales in the Millwater area.
"The dream team strikes again. For the second time we have had the pleasure of having Grayson, Sarah and the team at Mike Pero Millwater market and sell our property. They made the process easy and took care of all of the details for us. The professional photos were fantastic and made all the difference for our online marketing. Second to none, real estate professionals we would recommend to everyone."
Shane & Nicole Woods | Prospect Tce and Skipjack Pass
"My sincere thanks go to Grayson Sarah and Vanessa from Mike Pero for achieving the successful sale of my property in Millwater. Grayson is happy to spend as much or as little time with you as you require to find out all about the exciting but sometimes stressful process of selling a beloved home. No question went unanswered from him - or Sarah and Vanessa for that matter -and they work so well as a team. I would highly recommend them to anyone thinking of selling their home as not only do they achieve great results they have your best interests at heart."
Kathryn Deakins | Blake Greens
"We have used Sarah and Grayson from Mike Pero Millwater on three occasions to sell our homes. On every occasion we received good market information and the final result exceeded our financial expectations. Appointments were always kept and phone calls always returned without delay. Open home feedback was prompt and accurate.
Grayson and Sarah helped us finish creating our retirement fund in under 5 years. We are really happy we were loyal to a fantastic team who always exceeded our expectations."
Mark and Donna Bradford | Madison Terrace, Bartlett Drive and Botanical Drive
Grayson and Sarah were brilliant from the get go - the transparency and communication, including regular updates helped us feel connected to the marketing plan with the end goal always in mind. We felt like we were dealing with real people that understood us and our family needs. Being a part of Maddren Homes and in the business of building/selling homes, professionalism and quality are important to us and with Grayson and Sarah we felt we got looked after every step of the way. They were professional and approachable and we were constantly kept informed - we felt like our home was always a priority and they were focused on achieving a great outcome for us, which they did! We’d recommended listing with Mike Pero, as we would again in a heartbeat. We wish them every success. The kids were rapt their playhouse was even sold. The Anderson Family | Outlook Terrace