The Real Estate Institute reports there has been a solid start to the real estate market in 2013 continuing the trend that developed during 2012. Sales volumes are up over 20% on the same time last year and whilst the national median price for January eased from its December level it was up 4.2% from the same month last year.
There is no question there is renewed interest in our market place confirmed by strong sales volumes across all sectors and price ranges. As is always the case there are differing opinions as to how this year will unfold but the Reserve Banks’ decision to leave the OCR unchanged at 2.5% is further good news.
When considering all economic indicators the Reserve Bank expects economic growth to strengthen over the coming year, although they have said they do not want to see financial stability or inflation risks accentuated by housing demand getting too far ahead of supply.
But in our area, demand certainly is high! Our Massey market is still doing extremely well, often achieving sale prices exceeding vendor expectations due to fierce competition amongst buyers. Very positive buyer enquiry is creating competitive selling conditions with high levels of buyers at open homes, strong bidding at Auctions and very often multiple offers being presented on properties being sold by Private Treaty (fixed asking price). Buyers are battling it out and rushing to be the first to see new houses as they appear on the market as many have missed out on several properties and are in a frustrated search for their new home.
Will conditions ease or alter in the foreseeable future? Highly unlikely, but let’s just see what the next few months bring!
Kay Wilson – Licensed Real Estate Salesperson and executive member Massey Birdwood Settlers Association