Sunny 4 bedroom Lockwood Family Home BEO $520,000 Open Home Sunday 2-00-2-30
Original House re-clad last week, Extension built in 1995
New Kitchen flowing to expansive open-plan dining/living
Separate lounge flowing to Nth-facing deck and panoramic views
4 Double bedrooms plus study, bathroom & master ensuite
Gas hob & heating, Infinity hot water plus ventilation system
Child-friendly fenced flat section and large garaging
Architecturally-designed and re0configured 2 double bedroom home
Modern kitchen and tiled bathroom
open plan living flows to deck and back garden
Matai floors, carpets , gas heating,water and hob
Predominantly re-clad,colour steel roof
Close to City, Educational institutions, hospital and parks
Market comment
Happy New Year! I am back from my summer holiday in Ohope to find that Wellington’s appalling summer has not affected the property market one iota. Since my last newsletter in October the market has continued to rise with houses selling well across all price ranges right up until Christmas. It is very evident that buyers have shrugged off the “doldrums of late 2007 and 2008 when life in Real Estate became pretty depressing for all parties and it now feels a little like the pre-crash days!! For those in the market a sample of our office statistics for the September/ November quarter –Sept to Nov makes interesting reading.
| Price range | Number of sales |
| 250-350,000 | 6 sales |
| 340-450,000 | 11 sales |
| 450-600,000 | 38 sales |
| 600-800,000 | 15 sales |
| 800-1,000,000 | 4 sales |
| 1,00,000 + | 3 sales |
The sales in the middle and top range moved appreciably over this period and this was reflected in a 27% increase in the number of listings (signed agencies). There is a continuation in this trend with lots of listings coming on stream, especially in investment properties, with approx 55% falling into this category. This could be in reaction to discussion about a change in property tax structures.
Figures released by Quotable Value (Jan) pointed to a “dramatic and somewhat unexpected level of turnaround” less than 18 months after the housing market flattened. “Values nationwide are just 4.9% below the peak of the market in late 2007”. My experience at the end of 2009 confirms these figures as house prices especially around the 500-650,000 increased quite markedly. In Wellington city the average price is now $524,643. As well as having to pay more, homebuyers also have less choice.
Quotable Value Manager, Glenda Whitehead said “the housing market had been rescued by lower interest rates, improving confidence and the age-old affection for property”. The main driver of the turnaround has come from the city centres where house hunting is getting harder and there have been fewer houses for sale and with pre-recession price tags making it even harder for 1st homeowners.
Professor Bob Hargreaves from Massey University sees the speedy bounce back as the result of the continuing house shortage, a net migration increase and low interest rates. This creates a mismatch between supply and demand. If you are contemplating a move in the near future - take advantage of this mismatch!
Coming to terms with the language of Real Estate
In my last newsletter I gave you 10 tips for spending your home improvement dollars wisely so this time to help you work your way through the sales process I have included a guide to some of the more common terms used in real estate. There is a lot of jargon in any occupation and my industry is no different !
· Agreement for Sale and Purchase –The written contract for the sale and purchase of a property, seek legal advice before signing
· Back-Up offer - A formal second offer accepted by the vendor should a conditional sale fall through
· Certificate Of Title- The document that describes the property and gives legal right of ownership to the property
· Chattels- The moveable objects found in a house or elsewhere on the property that are included in the sale. E.g. the stove, TV aerial, carpets, blinds, curtains, drapes and light fittings
· Commission - A flat fee or percentage of the sale price paid by the vendors to the real estate agent who organized the sale
· Conditional Agreement - A legally binding agreement subject to certain conditions being satisfied before the sale goes unconditional
· Cross-lease Title - type of ownership that’s common where there is more than one property on the single title
· Equity - the amount of the property that the purchaser owns rather than s/he owes
· Freehold (title) – a form of title where the land and buildings on the property are owned with few restrictions
· LIM - a Lim (Land Information Memorandum) is a report on the property provided by the local authority that details it’s zoning and history of consents, alterations and rates
· Mortgage - the security the borrower gives the lender and which is registered against the title to the property being purchased
· Possession - the date on which purchasers take physical possession of the property
· Principal - the amount of the loan borrowed
· Settlement date - when a purchaser pays for the property, usually it is the same date as possession
· Unit Titles – a form of ownership of apartments and units where each owner has freehold title to his/her individual unit and any garage/parking space or similar attached to it, as set out on a Unit Plan
Ring me and I will help you through the selling or buying process. My number is 0274484112
Chris Mulcahy
If you would like to receive this newsletter online, email me at chris.mulcahy@xtra.co.nz.
