North Shore Real Estate Market Surges

Tony Alexander

I still have a struggle reconciling the negative reports in New Zealand media- both the press and on TV, about the real estate market. The are simply out of touch with the reality of a great real estate market here on the North Shore.
It’s quite simple. Buyers are in the market and actively buying homes right now. These are the results from recent auctions I have conducted
13 Katui Street, Castor Bay

over 60 groups attending open homes, 70 at the auction, 6 buyers, 3 bidders….sold $1,300,000, unconditionally.
1 Trafalgar Road, Milford

over 60 attending open homes, 50 came to the auction, with strong bidding by 3 parties up to $780,000.
9 Sandford Street, Campbells Bay

50 groups attending open homes, 50 at the auction, 4 buyers, 3 bidders, strong bidding up to $760,000 and then someone mad a king bid and took it away for $825,000.
Over the last two months the Harcourts Milford office has sold 65 homes with a total value of over $40,000,000.

These are exceptional results and while we are a great office with exceptional sales people, right now there is a shortage of homes on the North Shore. I have reported this to you before. And the problem is not going to go away. So prices are going to go up. If you are buying, take advantage of the lowest interest rates we have had for many years. If you wait til next year both interest rates and prices will be higher.
If you are thinking of selling give me a call, we have a pool of buyers looking for family homes in Campbells Bay, Castor Bay and Milford. Its likely you will have multiple buyers interest.
If you have any doubts, read what Tony Alexander, The BNZ Chief Economist had to say recently…”What those factors tell us is that although prices are high by world standards construction costs are rising, an aging population will drive average occupancy down, building standards keep getting lifted, councils won’t free up land on their outskirts, non-housing assets like shares tend not to be favoured by Kiwis, banks are newly easing their lending criteria, funding for new subdivisions has structurally declined, and from late this year we expect a period of labour market strength. Offset by the depreciation allowance change from April 1, weak sentiment, and easing net migration inflows we  get a picture of a market likely to produce rising turnover then rising construction then capital gains from late this year led by Auckland.”
Tony Alexander, BNZ Economist, BNZ Weekly Overview, 17 March 2011
On the North Shore this recovery is starting early and will continue. Later this year, the World Cup will be in Auckland, and the North Shore will stand to benefit. The rebuilding of Christchurch will start and the National party will be re elected. ( sad for a green like me!) but good for business confidence. I feel very strongly that this renewed and stronger real estate market is here for a while yet. You can be assured that now is the hour if you are buying, you certainly don’t want to wait for the reserve bank to raise interest rates and for prices to rise.
Seller should be confident that now is a great time to sell, with confident buyers with low interest cash in their pockets. Here’s a link to help you get  a great price for your house.