Natacha Debas - Licensed Real Estate Salesperson REAA 2008

Market Update – May 2021

House Price Rises Continue – Summary of REINZ report

Median prices for residential property across New Zealand increased by 32.3% from $620,000 in May 2020 to $820,000 in May 2021, according to the latest data from the Real Estate Institute of New Zealand (REINZ).

The Tasman region reached record median prices, once again, with a 21.2% increase from $701,500 in May 2020 to $850,000 in May 2021. Nelson (+20.8%) and Marlborough (+32.7%) also saw increases in median house prices year-on-year this month.

Highest number of houses sold for May month in 3 years

The number of residential properties sold in May across New Zealand was the highest number of properties sold in a May month for 3 years with 7,550 properties sold, a 1.3% uplift from April 2021 and an 81.4% increase on May 2020.

In May, all 16 regions saw annual increases in sales volumes. Tasman: +112.9% (from 31 to 66 – 35 more houses) with the biggest increase.

“It’s worth noting that some of the annual sales volume comparisons are still a little skewed by the impact of the COVID-19 Level 3 lockdown in May 2020 so it won’t be until next month that we get a clearer picture of how things are really going,”

WENDY ALEXANDER, REINZ ACTING CEO

Attendance at open homes eased slightly, however, interest from out-of-town prospective purchasers has remained strong. A shortage of available stock in the region has continued to put upward pressure on prices and resulted in a number of multi-offers being placed on homes. Sales of million dollar plus properties increased from 5.3% in May 2020 of the market to 17.6% in May 2021. Activity is expected to remain steady over the winter months before picking up again in spring.

“Looking forward, we would expect sales volumes to remain relatively stable over the winter months, however, if we don’t get more listings coming onto the market, it could be a very quiet winter indeed,”

WENDY ALEXANDER, REINZ ACTING CEO

Nelson/Marlborough/Tasman Region:

Compared to May 2020
• Median Price up 22.4%
• Sales Count up 55.3%
• Days to Sell decreased 29 day
Compared to April 2021
• Median Price down 2.1%
• Seasonally adjusted median price up 1.7%
• Sales Count down 6.4%
• Seasonally adjusted Sales Count up 10.3%
• Days to Sell increased 1 day

Source: REINZ

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 Posted on June 17, 2021 by

 Tasman Property Market Updates

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Market update – November 2020

Data Shows Highest Number of Properties Sold in NZ in 13 Years – Summary of REINZ report

The number of residential properties sold in November across New Zealand increased by 29.6% from the same time last year.

In Auckland, the number of properties sold in November increased by 53.9% year-on-year. In addition to Auckland, some regions saw a large increase in annual sales volumes during November, annual sales volume for Nelson increased by 25.8% (from 93 to 117 – 24 more houses) – the highest for the month of November in 18 years.

‘The last time we saw a similar level of sales volumes was back in March 2007, before the national recession and Global Financial Crisis started impacting New Zealand’s property market.’

Bindi Norwell – REINZ CEO

“November saw more than half (10 out of 16) of the regions across the country with double-digit percentage increases in annual sales volumes showing how buoyant the market is. Part of this is likely to be attributed to people wanting to purchase property ahead of Christmas, partly due to the
Reserve Bank announcing in early November that it would undertake a consultation in December to re-introduce LVRs earlier than planned, but also due to this underlying fear that prices might increase even further in the coming months,” Says Bindi Norwell, CEO of the Real Estate Institute of New Zealand.

MORE THAN A QUARTER OF ALL PROPERTIES SOLD BY AUCTION IN NOVEMBER

November saw 26.9% of all properties sold by auction, with 2,661 properties selling under the hammer – up from 16.8% at the same time last year, when 1,279 properties were sold via auction and up from 22.8% in October this year. This was the highest percentage of auctions the country has seen in 62 months (September 2015).

Median Price

Median house prices across New Zealand increased by 18.5% from $632,000 in November 2019 to a new record median high of $749,000 in November 2020; and up from $725,000 in October this
year – a $24,000 increase. In total 11 regions saw record median prices during November. Tasman was one of them with a 28.0% increase from $605,000 in November last year to $774,400 this November, and Nelson with a 9.8% increase from $610,000 in November last year to $670,000 in November this year.

“Since October 2011, we’ve seen successive annual increases in median house prices and the last 5 months have been double-digit increases. This just isn’t sustainable and with data out earlier this week showing that home ownership is at its lowest level in 70 years, the gap between those that own and those that rent is just going to keep growing unless we can do something to start addressing the supply issue the country has,”

Bindi Norwell, REINZ CEO

Record median prices were reached in the Nelson and Tasman regions in November 2020, up 9.8% and 28.0% respectively from the same time last year. Nelson reached a record median price of $670,000 and Tasman saw a record median price of $774,400.

Sale Volume

Sales volumes were up 25.8% for Nelson (the highest for a November month since 2002) and up 13.0% for Tasman (the highest for a November month since records began).

“Open homes have registered high levels of attendance across all price brackets and properties are selling quick, generally with multiple offers made.”

Bindi Norwell

The total number of properties available for sale nationally decreased by -16.9% in November to 18,319 down from 22,049 in November 2019 – a decrease of 3,730 properties compared to 12 months ago.
Nelson was one of the regions with the largest percentage decrease in total inventory levels, with a decrease of -44.7% from 421 to 233. And Nelson also had its lowest levels of inventory ever with only six weeks inventory available to prospective purchasers highlighting how we desperately need new listings to come onto the market in some parts of the country.

Days to Sell

In November, the median number of days to sell a property nationally decreased 4 days from 33 to 29 when compared to November 2019, the lowest since March 2007. Across the country, 11 regions had a median number of days to sell of less than 30 days – the last time we had at least 11 regions at less than 30 days was in December 2003.

The current Days to Sell of 29 days for our region is less than the 10-year average for November which is 32 days.

(Source – REINZ, Nov 2020)

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 Posted on December 15, 2020 by

 Tasman Property Market Updates

Market Update – October 2020

Highest sales count for an October month in 17 years

Auckland median house price hits $1M mark in October; 9 other regions and 28 districts around the country saw house prices reach new record medians in October. This shows how low interest and mortgage rates, the diversion of spend on overseas travel to property, expats returning home, the removal of LVRs and a fiercely competitive market due to the lack of listings have all been contributing to price rises over the past few months.

But the frenzy doesn’t stop at record prices, the number of residential properties sold in October across New Zealand increased by 25.0% from the same time last year (from 7,063 to 8,830) – the highest number of properties sold in 53 months (May 2016) and the highest October sales count since October 2006 (14 years).
For New Zealand excluding Auckland, the number of properties sold increased by 14.2% when compared to the same time last year (from 4,982 to 5,690) – the highest number of properties sold since March 2017 (43 months) and the highest October sales volumes since October 2006 (14
years).

“Given the price rises we’ve seen over the past few months, we wouldn’t be surprised if the Reserve Bank goes ahead with its proposal to reinstate LVRs before the 12-month period is up – particularly for investors.”

Bindi Norwell – CEO of The Real Estate Institute of New Zealand

Median Price

Median prices in the Nelson/Marlborough/Tasman regions increased in October 2020 when compared to the same time last year, up 10.5%, 26.8% and 12.9% respectively, with Tasman reaching a median house price of $700,000.

In the region, demand has remained high for good properties with 31.4% of all sales in the $750,000+ bracket, compared to 15.8% in the $750,000+ bracket at the same time last year. Many properties are receiving multi-offers and selling above vendor expectations.

Days to Sell

In October, the median number of days to sell a property nationally decreased 5 days from 34 to 29 when compared to October 2019, the lowest for the month of October in 17 years.

The current Days to Sell of 27 days in Nelson/Marlborough/Tasman is less than the 10-year average for October which is 32 days. There were 9 weeks of inventory in October 2020 which is 4 weeks less than the same time last year.

“This is the first time since records began that we haven’t had a single region with a median number of days to sell a property over 40 days showing how quickly people are moving to secure a property they like in the current market. As important as it is to be ready to move quickly, it’s important that people take time to do their homework before rushing in to purchase a property.”

Bindi Norwell – REINZ CEO

Sale Volume

Only one region, Nelson, saw an annual decrease in sales volumes with the number of properties sold
in October falling by just one property from 102 in October 2019 to 101 this October. But sales count was up 10.7% and 29.3% for Tasman and Marlborough respectively. Tasman saw the highest sales count for an October month in 17 years, with 83 properties sold.

“New Zealand’s housing market is extremely buoyant at the moment, with more than 8,800 properties sold around the country – that’s more than 283 properties sold every day in October. The last time we saw sales volumes of this magnitude was back in May 2016 when the market was very strong, and prices were rising across many parts of the country.“ says Bindi Norwell.

(Source – REINZ, Oct 2020)

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 Posted on November 12, 2020 by

 Tasman Property Market Updates

Highest number of properties sold

Real Estate Market September 2020 – Summary of REINZ report

The number of residential properties sold in September across New Zealand increased by 37.1% from the same time last year (from 6,112 to 8,377) – the highest number of properties sold in a month in New Zealand for 42 months (March 2017) and the highest number of properties sold in a September month for 14 years, according to the latest data from Real Estate Institute of New Zealand (REINZ).

Nelson: +66.2% (from 65 to 108 – 43 more houses) – the highest for the month of September in 17 years

Tasman: +42.5% (from 73 to 104 – 31 more houses) – the highest for a September month since records began

Bindi Norwell, Chief Executive at REINZ says: “Normally one month out from an election, people start to take a wait and see approach, and sales volumes begin easing off. However, 2020 appears to continue in its trend of being an anomaly, with the number of properties sold the highest in 42 months, since March 2017, when the country was last experiencing such growth.”

“2020 appears to continue in its trend of being an anomaly, with the number of properties sold the highest in 42 months”

Bindi Norwell, REINZ CEO

“Much of this activity is being driven by the extremely low rates at which people can borrow money, which is at its lowest levels since records began, consumers having additional ‘cash’ available due to a lack of international travel and some uplift from returning ex-pats. When you then add in high levels of confidence in the housing market, the removal of the LVRs back in March and people’s fear that prices are just going to keep increasing in the future, then this explains why people are going to such lengths to secure a property now,” points out Norwell.

“At this point in time there are no signs on the horizon pointing to a change in the next few months, so it will be interesting to see if things slowdown in October as the election actually happens or whether sales volumes just continue rising,” she continues.

Days to sell lowest for a September month in 4 years

In September, the median number of days to sell a property nationally decreased 4 days from 36 to 32 when compared to September 2019, the lowest for the month of September in 4 years, and the lowest days to sell since March 2020 (30 days) just as COVID-19 hit New Zealand’s shores.

For New Zealand excluding Auckland, the median days to sell decreased by 5 days from 34 to 29, the lowest for the month of September in 15 years.

The Tasman District saw its lowest number of days to sell for the month of September since 2004 (27 days), less than the 10-year average for September which is 35 days.

Median price index

Median prices increased in the Nelson/Marlborough/Tasman region in September, up 15.0%, 14.2% and 7.1% respectively. The Median Price for the Tasman District this September is $675,000, 7.1% compared to this period last year and 2.3% compared to last August.

Sale volume

The Tasman District saw its highest volume of sales (104 properties) since December 2002 up 42.5%. There were 11 weeks of inventory in September 2020 which is 3 weeks less than the same time last year.

“Open home interest has remained strong throughout properties’ marketing campaign periods with pre-auction offers occurring regularly. Vendors are aware of the local and national trends and are therefore expecting a premium price for their properties. The region continues to attract out-of-towners looking to relocate or find a holiday home which has been adding pressure on demand and resulted in an increase in multi-offers. The pre-election lead up has not cooled vendor or purchaser activity and we expect these same activity levels to continue through the Christmas/New Year period.”

Source REINZ – Data from Sept 2020

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 Posted on October 20, 2020 by

 Tasman Property Market Updates

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Tasman Region Market Trends – August 2020

The housing market across New Zealand is still buoyant and the Tasman Region is no exception.

” The market will continue to be busy with the attractiveness of job and lifestyle options in the area.”

Bindi Norwell – REINZ CEO

Median sale price increase

Every region in the country saw an annual increase in median house prices, according to the latest data from the Real Estate Institute of New Zealand. The median sale price for the Tasman District for August is $660,000, an increase of 9.1% compared to that same period last year.

Sales volume

The number of residential properties sold in August across New Zealand increased by 24.8% from the same time last year (from 6,132 to 7,652) – the highest number of properties sold in an August month for 5 years.

Regions outside Auckland with the largest increase in annual sales volumes during August were Nelson, Southland, Hawke’s Bay, Wellington, Northland and Tasman, with the Tasman district’s sales volume increasing by 28.8% (from 66 to 85 – 19 more houses) – the highest for the month of August since records began.

Days to sell

In August, the median number of days to sell a property nationally decreased 5 days from 39 to 34 when compared to August 2019, the lowest for the month of August in 4 years, and the same figure

as July this year. In Tasman, the number of days to sell is down to 30 days, 8 days less than the 10-year average for August.

A seller’s market

With the total number of properties available for sale nationally decreasing, record low interest rates and the removal of loan-to-value restrictions, combined with people’s new aspiration for more space and first-time buyers’ desire to get onto the market have all contributed to an uplifted market hitting records month after month.

” The housing market’s recovery post-lockdown over the last few months has been astonishing and has certainly surpassed many predictions.”

Bindi Norwell – REINZ CEO

(Source – REINZ, Aug 2020)

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 Posted on September 30, 2020 by

 Tasman Property Market Updates

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Natacha Debas – Licensed Real Estate Salesperson REAA 2008

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