The market trend for house prices in Gisborne is they are falling, but not by much. Sales over the past 11 years show that the market peaked in 2007 and since then prices have remained slightly below that level.

Often the monthly results can show a spike, however due to the small amount of monthly sales (under 30 for  Gisborne city) the reporting can distort the big picture overview. Even quarterly results show periodic fluctuations and often a strong three month period with increases is followed by  weaker results.

In reality, during 2011 the Gisborne residential property market failed to hold values at the previous levels. I’m sure over time values will rise again, but I am reluctant to predict when this will happen. We are not in isolation and there are many external factors that influence our local market. Going forward into 2012, the country’s economic growth may prove be a challenge. Take a look at Tony Alexander’s (BNZ economist) comments.

This information just highlights the fact, that Gisborne is one of the most affordable places to live in New Zealand. All the lifestyle benefits of living in the first city in the world to see the sun can be ours and at an affordable level.

Click here to view the embedded video.

Click here to view the embedded video.

Selling by Auction on 15 February, 12.30pm on site.

The new Rating Valuations (2011) are out for residential property in Gisborne. They are back dated 1 July 2011. Despite the clear disclaimers from the Council and Land Mass Technologies  that Rating Valuations are not accurate market valuations, we still tend to reference our property against its RV. However upon closer inspection, it is clear that we should not rely on this data to help us determine what our property is worth.

So how close to recent sale prices are the RV’s ? Only 32% of the 4th Quarter  2011 sales in Gisborne were within 5% of their 2011 RV’s. That means that in 2 out of 3 cases the RV’s are way off the mark.

It is important to remember that market value is determined by what buyers will pay. While sellers expectations are relevant, they are not necessarily an accurate opinion of true market value.

When you are selling, you only have two options, either to:

1) met the market and sell or

2) hold and wait until prices improve.

In this current environment that may prove to be a while away.

Gisborne’s property values dropped by 2.8% during 2011. Nationally average values rose by 2.4%. Those increases were in the main centres and in some provincial cities. Both Tauranga and Hamilton’s values were flat. Gisborne was not alone in falling values.  For the full report visit the QV website. (Quotable Value New Zealand).

QV gathers its data from completed sales, i.e. after the property is in the new owners hands. REINZ (Real Estate Institute of New Zealand) data is gathered on the basis of unconditional contracts i.e. agreement has been reached between seller and buyer but the property has not yet been transferred to the new owner.

QV sales data is generally 2 – 3 months  behind REINZ data. REINZ sales date for 2011 will be posted shortly.

As the year comes to an end, it seems there is an increase in sales activity in the residential property market in Gisborne. A few agencies are reporting more sales, however the auction clearance rates are showing a mixed bag of results.

LJ Hooker Gisborne has posted 11 residential sales for December, following on from the strong November activity when 10 sales were reported. There is plenty of new offerings in the new year with 17 auctions booked for early 2012. “It’s good to see activity levels rising” said Neil Walker. “It feels like there is greater confidence in the market.”

The final edition of the Gisborne Herald’s Property Guide features plenty of fresh stock. Traditionally this publication has been a bigger issue.

As the team at LJ Hooker take a break over the new year period, this will be the final post for the year. We will be back online on 5 January 2012. In the meanwhile, I’ll take this opportunity to wish all our readers a merry Christmas and a prosperous new year.

124 Ballance Street, Gisborne sold under the hammer at auction yesterday for $335,000. There was good interest shown in the property throughout the 4 week marketing campaign with over 25 inspections and on auction day 3 buyers bid. “I knew there was going to be keen interest to own the property,” said marketing agent Neil Walker. “It’s a beautiful home.”

The renovated 3 bedroom bungalow was tastefully presented and was offered in first class condition. The big attraction was the impressive in ground pool which was described at “resort like.” Also the list of chattels included poolside furniture and home gym equipment.

“I’m delighted for the owners as well as the new owners to be. It’s a win – win situation all round.”

The property was previously sold in 2009 for $290,000.

It’s interesting to see how the new rating valuations compare against the  most recent sales. The result; still all over the place really. The variation for October and November sales still swings from 58% below to 26% above. But that’s to be expected really.

After all rating valuations are not made for the purpose of setting market value. They are set for collecting rates. The market (what buyers are willing to pay) sets it’s own values.

The owners of 802 Childers Road Gisborne have decided to let their investment property go, well below what they were hoping to get. They have dropped their asking price by over $20,000 and are now asking $232,000.

The three bedroom stucco bungalow offers great outdoor living, a massive double garage and workshop, all in very good condition. Located near Chalmers Road, the location will prove popular for those requiring easy access to the northern end of town and  to the Poverty Bay flats. Selling with vacant possession, a quick settlement date can be arranged.

The property has a new 2011 Rating Valuation of $240,000.