On The Up And Up...

Spring is here in more ways than one. The daffodils are blooming and there are signs that the Kerikeri property market is starting to warm up after a chilly, wintry couple of years. We are seeing an increase in enquiry and, in particular, buyers looking to move here from other places. While the enquiry is still spotty and low compared with boom years there is a positive turn in the wind.

The effect of the OCR drops and banks offering lower fixed term rates is making it easier for people to borrow the money they need to buy. Other parts of the country are reporting increases in sales activity. The Brynderwyn’s are open and there are positive announcements about the new coalition government’s plans to extend the state highway North.

We have yet to see this increase the volume of sales in our small town but higher activity in our feeder markets and particularly Auckland, has historically resulted in increased sales over time. As they say, “Auckland sneezes and we catch a cold”.

The volume of sales around Kerikeri through August 31st 2024 is ahead of 2023 by around 6%. The main difference this year is the significant increase in the proportion of sales under $1 million compared to the last 2 years. Signalling a possible shift, 11 of the 15 houses sold in August were $1 million plus. We will be monitoring this trend over coming months. Inventory levels are still high but have stabilized with around 79 weeks of properties available at current sales rates compared to 71 in July and 85 in May.

Median prices are down about 15 to 20% from their peak levels of September 2022 but price declines appear to be flattening out. About 95% of the August sales are under the 2022 GV compared to 50% at the beginning of the year.

Kerikeri’s median sales price is still historically high relative to other larger metropolitan centres which saw price corrections occur 9 months earlier than we did. This makes it difficult for people to sell their homes in some other places, move here and release equity from their homes to retire or have a lower income lifestyle change. On the other hand, it has rarely been less expensive to sell here and move to the city. However, the price gap is already widening and is likely to widen further as metro markets pick up pace ahead of our own. Just as our peaks lag the peaks in the city, our troughs lag also.

Having the right sales strategy for these market conditions is essential. Top notch presentation and realistic, competitive price expectations are critical for achieving sales. Expertise on competitive pricing strategies, marketing the differences and benefits of your home and positioning it in this competitive environment are all essential to make it stand out. Ensuring all advertising media and platforms are utilized to reach the widest audience of buyers is a must. Our unique sales system has successfully attracted “multiple offers” on those properties that are positioned attractively and well-presented which has produced above average results for vendors.

When selling your biggest asset isn’t it important to hire the best professional team to get the job done? Navigating the complex environment of selling your home is no longer a job for just any salesperson. You need the experience of a team of expert advisors to obtain the best results. Having experienced several market cycles in Kerikeri, our established and stable team with a combined 100 plus years of servicing the Kerikeri community is properly and uniquely suited to provide the advice you need to achieve your real estate goals. We have sold more property in Kerikeri than any other agency consistently for 20 years and achieved better prices.

Come and talk to us about how we can help. Our advice is free and so is our coffee.