Sales Statistics for the Whole of The Bays and beyond Found....Here
234 properties have sold in St Heliers, Glendowie, Kohimarama, Mission Bay, and Orakei from the start of May to the end of August. The 'quick-glance' chart below offers a breakdown between the suburbs and the number of properties that have sold during that period. September sale numbers have not been included as they are not yet on the public domain. But, using Barfoot and Thompson St Heliers branch office as a guide to the number of properties that have sold this month, it is fair to say they make attractive reading.
While we cannot comment on the numerous other real estate companies, it is a fact that Barfoot and Thompson St Heliers have been selling close to a property a day for the past 4 months. It is also a fact that we have been selling more properties than getting new listings coming onto the market. Currently our biggest challenge is finding more properties to sell.
You can imagine the number of frustrated buyers we have. Anecdotally, there are increasing numbers of buyers going through open homes in The Bays. That means more buyer competition and better prices. Of course the current small number of properties for sale on the market increases a seller's likelihood of a sale because of the buyer's reduced choice. Buyers also enjoy the advantage of low interest rates which economists generally agree are safe for now.
This raises the prospect of house inflation (we have already seen price increases in food, petrol, rates, insurance etc). As business journalist, Jenny Ruth points out: Goldman Sachs economist Philip Borkin recently commented that Alan Bollard, the governor of the Reserve Bank, has acknowledged the domestic economy is improving and inflation risks remain. Infometrics economist Gareth Keirnan predicts housing prices will rise 5.6% by the end of next year. BNZ economist Stephen Toplis mentions there is a real risk of under-supply and excess demand.
Of course some may argue, “we are buying and selling in the same market so inflation won't make a difference”. Well that statement is true in a stable market. But it ignores the difference between price and cost when inflation hits. Price represents your property value. If inflation forces property prices up, your property value must also increase.
Cost represents the pain you experience when you buy another property. Cost is particularly relevant when salary and wages lag behind inflation. In a nutshell, even though property values (price) increase in line with inflation, salary and wages fall behind.
What does this mean for you? Assuming economists are correct about rising inflation, alonside the price vrs cost distinction, buying a property next year will be more painful than buying one now – even when you take buying and selling in that same market into consideration.
So, should you sell now? Yes if you play the market to your advantage: enjoy selling well now (less competition from other sellers and more opportunity to attract high-paying buyers), then pick up a good buy with summer just around the corner when traditionally more properties come onto the market - before inflation and increased mortgage rates take place next year.
