Market brief Invercargill Real Estate

Our sales team report a continuum of the property trend throughout 2019 with strong buyer demand with our sales reflecting a substantial increase in the median sell price of Invercargill City and Southland dwellings. It has been widely reported the total number of sales this calendar year-to-date has reduced with seller supply not keeping pace with buyer demand.

“The REINZ House Price Index in Southland reached a new high from peak with an increase of 18.2% year-on-year, the highest increase throughout the country. On the flipside, the Southland region experienced the biggest decrease in sales (-27%) and the biggest drop in the number of new listings (-34.7%).” Source: REINZ Monthly Report 15 October 2019

Snapshot of REINZ reported sales of Dwellings Invercargill January-September 2019:

  • 65% of dwelling sales were closed below $350,000
  • Median sell price for dwellings $300,000
  • Median number of days on market for dwellings: 30-days
  • Preferred method of sale: Dwellings sold by Price / Private Treaty 95.1%
  • Median sell price for land: $175,000

Meet our team delivering next level results.

 

So you back yourself to stand up and ste

So you back yourself to stand up and step outside the norm and embrace a challenge; then whoever hires you is one lucky employer. We’d like that employer to be us!
We are recruiting for a property manager and we want you to work with us not for us. Perhaps this is the day you seek out a role you’d never considered before? What you waiting for; there’s no green light to signal go for it?
http://ow.ly/eq1F50w9dCd

Thursday’s being one of the days our sa

Thursday’s being one of the days our sales team head out to view our new property listings. Our neighbours – Electric Motor Vehicle Company kindly lent us their zero emission Nissan Leaf to road test across the team. The ride was very quiet with the car full of zest even with four blokes. The comparative discussions were interesting however the latent feeling expressed by all was these vehicles have a place on our roads.
http://ow.ly/u6kM50w6oa7

The underlying demand for rental propert

The underlying demand for rental property continues and it’s Interesting to note the latest increase in median rents for Invercargill City July 2019 comparing July 2018.
Beds July 2019 July 2018 % Increase
1 $180 $162 +11.1%
2 $280 $230 +21.7%
3 $340 $280 +21.4%
4 $390 $280 +27.8%

A quick check of our rental board at our office punctuates that the market remains limited for choice.

The Welcome Home Loan and HomeStart gran

The Welcome Home Loan and HomeStart grant will now only require a five per cent deposit under KiwiBuild reset changes.
The Government-backed supports – available for all first-home buyers, not just KiwiBuild buyers – have seen major changes as part of the reset. The Welcome Home Loan allows first-home buyers making up $130,000 a year as a couple or $85,000 or less as an individual to buy a house with a 5 per cent deposit. The HomeStart grant gives couple buyers up to $20,000 of help in getting that deposit.
http://ow.ly/eVTM50vVPeF

Four major banks have announced cuts to

Four major banks have announced cuts to home loan rates.
The RBNZ slashed the cash rate by 50 basis points to 1 per cent today – a new record low for New Zealand’s cash rate.
ASB was the first bank to move on cutting its home loan and saving rates but it has since been joined by Westpac, BNZ and Kiwibank.
ASB’s variable home loan interest rate will fall from 5.7 per cent to 5.2 per cent and its revolving credit Orbit home loan will drop from 5.75 to 5.3 per cent.
Source: NZ Herald.
http://ow.ly/AKUW50vqliV

EXECUTIVE SUMMARY: INVERCARGILL REAL ESTATE SALES- Calendar Year Jan -June 2019.

Informative updates are fundamental to be first to know when the time is right to make your move whether it be buying or selling. Adhering to REINZ policy we are not at liberty to comment on the market data; so, we’ll just let our ‘desktop analyses’ of the sales numbers do the talking.

Invercargill Sales by Property Type

Report Period: January – June 2019 comparing the previous 6 months July – Dec 2018

□ REINZ reported sales. Private / Developer direct sales not included.

Property Type January – June 2019 July – Dec 2018 Variance +/-
Residential Dwellings (RD) 865 sales  914 sales    -5.3%
RD Median Sell Price $291,500 $259,000 +12.5%
Residential Sections/ Lifestyle Blocks (RS) 74 sales  104 sales  -28.8%
RS/ RB Median Sell Price $155,000 $127,500 +21.5%
Total Sales Numbers 939 sales  1018 sales    -7.7%
Value of Sales $ $300,175,240 $291,004,740   +3.1 %

 January – June 2019 comparing previous 6-months July -Dec 2018:

  • Jan – June 2019 median sell price residential dwellings all types (home, unit, apartment, townhouse) $291,500. Sales above $700K represented 2.1% of all sales
  • July-December 2018 median sell price residential dwellings all types (home, unit, apartment, townhouse) $259,000. Sales above $700K represented 2.5% of all sales.

Analysis of selling method/ All property Types:

January – June 2019 comparing previous 6-months July -Dec 2018:

SELLING METHOD Jan -June 2019 Jul-Dec 2018
Tender  0.3%   0.6%
Quiet/ Off market  2.4%   2.9%
Auction  3.6%   4.7%
Private Treaty 93.7% 91.8%

 

REINZ Reported sales by price of Invercargill City Residential Dwellings

January – June 2019 comparing previous 6-months July -December 2018:

Price Band % of Total Sales % of Total Sales
               Sub $199,000  15.4 %   25.1%
  $200,000 – $299,000  36.5%    39.2%
  $300,000 – $399,000  24.4 %    18.0%
  $400,000 – $499,000  11.2%      7.3%
  $500,000 – $599,000   6.4%       4.4%

 

   $600,000 – $699,000    4.0%        3.5%
                Plus $700,000    2.1%         2.5%

 

REINZ Reported sales by price of Residential Sections/ Lifestyle Blocks.

January- June 2019 comparing previous 6-months July -December 2018:

Price Band % of Total Sales % of Total Sales
 Sub <$149,000 48.5%   62.5%
  $150,000 – $199,000 13.8%      9.6%
  $200,000 – $249,000 22.9%    18.4%
  $250,000 – $299,000   4.0%      3.8%
  $300,000 –      $349,000     n/a       0.9%
  $350,000 plus 10.8%       4.8%

 Data Source: REINZ. Private & Developer direct sales data not included.

Disclaimer:  While every effort has been made to ensure the information contained herewith is true, no responsibility will be taken for errors or omissions. You should seek your own independent advice from your legal, taxation and financial consultant prior to purchase.

Strong growth in residential rents in th

Strong growth in residential rents in the last 12 month

Rental Bond data analysed by http://ow.ly/ZxKx50uVcLr shows that the average rent from new bonds received from throughout New Zealand in the second quarter of this year was $450 a week, up 7.6% compared to the second quarter of last year.
That means that on average, renters are likely to be paying around $32 more a week in rent than they were 12 months ago. And the rate of increase is also on the rise.
Click the link for the table that shows the average rent NZ wide across all districts in the second quarter of this year, and the annual percentage change for the last two years.
https://bit.ly/2Nyol1O