Millwater Property Update
With Mike Pero Real Estate Millwater
The Millwater sales statistics for April should come as no surprise to anyone. With almost the whole month being covered by the Level 4 Covid-19 lockdown, there was little to no activity over this time. It was difficult to complete transactions with restrictions stopping physical interaction with property, meaning no building inspections, etc. Buyers were restricted to online viewing and while we were able to complete some aspects of contracts, they were typically subject to physical and building inspection once we came back to Level 3 restrictions.
So, frustratingly, we had a number of buyers wanting to purchase but unable to do so for over a month. As predicted, this has led to something of a mad rush of buying activity over the Level 3 and Level 2 periods and we are expecting to see the sales figures for May showing a significant bounce back. It seems that right now buyers are more worried about finding the right home to buy than being concerned with the potential impacts of the coming recession on house pricing. This is a good approach, as we know that the numbers of properties available for sale was low going into May and the recent spike in sales has exacerbated this problem.
If you are looking to buy over the coming months it is very likely that your choices will be limited and you may well have other buyers competing with you for your dream property. Yes, it is likely that prices will drop over the coming months, but as of today there is no evidence that they have, and waiting for this to happen may mean missing out on the right house.
As always, if you are thinking long-term, then buying the right house will bring you more joy than being able to brag about the fantastic deal you got on your second or third choice. Interestingly enough, it doesn't seem to matter how bad the market gets in Millwater, there is always a premium (above the average) paid for the truly good properties.
So what is the outlook for the coming months and years? Right now, we are anticipating a solid market for sales over the next few weeks. We are working our way through the pent-up demand and would expect that buyers who needed to buy, will generally have done so by the end of June, or made alternative arrangements. At the same time, we have relatively low levels of new properties coming to market. Our current thinking is that, by the end of June, we will see a tail-off in buyer enquiry somewhat balanced by lower numbers of properties on and coming to the market.
Going into July and through the rest of the year, we expect the new buyers entering the market to be somewhat cautious in their buying approach. It is likely that prices around the country will be showing signs of falling, so buyers will be waiting for any bargains that may come up. We are expecting to see increased activity levels from investors and first home buyers as falling prices theoretically improve their buying power. At the same time, we believe that most current owners will choose to wait and see what is happening with their jobs and businesses. It is doubtful that many will be looking to upgrade in the coming months, and this will restrict the supply of new property coming onto the market.
Overall, there will be a slowdown in the numbers of properties sold, with a slight skew towards more activity at the bottom end of the market and less in the upper price brackets. It is important to note that this shift in comparative weighting of sales is often what makes it appear that values have decreased, when in reality it is just more low value sales happening compared to normal, pushing averages and medians down.
Rolling into next year, we anticipate that the true impacts of job losses and business failures will start to be seen with more mortgagee and distressed sales a likely outcome. There is the possibility that some of this will be balanced by increased buying from investors, first home buyers, and some expats returning to the safer shores of NZ. There is already evidence of increased buying interest from overseas, and this may start to be reflected in sales and we would expect some displacement from stocks, bonds, and commercial property in this timeline as well.
We would like to think that the impact of some of the Government’s fiscal stimulus packages will start to be seen in different sectors of the economy, hopefully flowing through to new jobs and businesses being created. Overall, there are too many factors at play over the medium term to understand what 2021 might look like, other than to say it will be different. A little like dealing with COVID-19, there is no rule book to work from so, for the most part it is going to be a case of making it up as we go along.
As always I am happy to discuss these ramblings, real estate or the greater economy in more detail with anyone wanting to make contact. In the meantime, keep your distances, wash your hands and think positively, there are a lot of people and countries in far worse positions than us.
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