New Zealand homeowners continue to reap the rewards of investing in real estate, with new figures suggesting almost 95% of sales made in the September quarter were achieved at a profit.
The results gathered by researcher CoreLogic are slightly down compared to the previous quarter when 98.1% of residential properties were sold at a profit.
The record figure, an amazing 99.3%, was set 12 months ago when the real estate scene was at its strongest.
The latest results indicate that owners have made substantial gains from the recent property boom, which pushed the average national home price above the $1 million mark. Currently, that average stands at $1.009 million, according to a recent OneRoof survey.
While the market dip has affected the values of most homes, the worst-hit area has been Auckland, which was a big winner when the market broke value growth records. In the September quarter, CoreLogic found 5.8% of Auckland properties were resold at a loss.
As an experienced agency, we understand how homeowners feel about seeing values edge downward. However, it’s not all bad news. If you’re looking to climb the property ladder, this is a great time to move.
Even though you might achieve a lower price than anticipated 12 months ago, you’ll also be buying at a discount.
Those seeking to transact at the bottom of the cycle should appreciate the difficulty of their task. No one knows the price slide is over until values start bouncing back, and by then your goal has been denied.
Our recommendation is to buy and sell when it suits your personal circumstances. Delaying a decision for a few thousand dollars will seem pointless in five years. However, if you let your dream home get away because of your inaction, you’ll remember that for much longer.
Here are some quick tips for selling in today’s property market.
Pristine presentation
Your best chance of maximising the value of your home is to work hard to make sure it’s perfect for prospective buyers. Fix any maintenance problems, tidy inside and out and let as much natural light into your home as possible. Ask your agent for more tips.
Be positive
Buyers may think they have the upper hand right now, but that’s not true if more than one party is interested. Work with your agent to generate as much excitement about your property as possible.
Open mind
Sellers who are prepared to make a deal will do well. Don’t ask for or expect silly money; be ready to negotiate. Those who rigidly stick to their price often find their property stagnates on the market as buyers lose interest. This scenario hurts your home’s value more than anything else.