Wow! Who can believe we are almost a third of the way through the year already with Autumn on the horizon. We have certainly been enjoying this beautiful weather and to celebrate the fantastic summer we’ve had we’re going to be giving away TWO Hutchwilco life jackets later this month on our Facebook (simply LIKE our page @soldbyteamfinlayson for your chance to win!)
We have a number of new listings and have seen some fantastic results – at 31 Fairway Avenue in Red Beach, we’ve had over 53 groups through in the first 10 days, and our first weekend at 125A Rosario Crescent saw 15 groups through the property. At present, despite a large number of buyers needing to sell their homes before purchasing, we are opting more so for auction campaigns as they are engaging buyers to act. They set a timeframe, they create urgency, and the key component is that instead of pricing the property ourselves the market is determining the value. In a buyers market, it is essential to listen and work with the market rather than tell them and not be heard.
If we look at the Hibiscus Coast, we see that the market is very much aligned with the greater Auckland market, which has seen a flat line effect on prices throughout 2018. Although the North Shore has shown a 10% decline in prices, the HBC area has only shown a 3% adjustment for 2018. Our local market is helped by the continued growth in the area and the strong desirability of Aucklanders for our beach lifestyle and affordability, yet we’re close enough to commute to the city when needed. We are definitely seeing strong movements from the North Shore heading north and when marketing properties it is essential to be targeting these buyers as they tend to pay 3-7% more than the local buyers.
In January 2019 the Reserve Bank of New Zealand eased their Loan to Value (LVR) restrictions with banks now able to provide 20% of new owner occupier loans to owner occupier borrowers with deposits of less than 20% and 5% of new investor loans to investor borrowers with less than 30% deposits. This easing in requirements should act as a positive stimulus for increasing transactional activity in the market, especially with HBC being a strong attraction to first home buyers and young families, with great schooling and day care facilities abundant. We believe the low interest rates, elevated migration and the ongoing housing shortage will ensure the fundamental supply and demand imbalance will persist and underpin the Hibiscus Coast market in the longer term and we are expecting business as usual in the market for 2019.
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