remember the good ole days ...

House sellers and real estate agents found it tough going last month with only 27 houses sold in Gisborne City in July 2010. This level of sales is extremely low and comes off the first six months averaging only 35 sales a month. The monthly median sale price continues to hover around the $250,000 mark and days on market dropped a little to average 38 days.Factors contributing to the low sales are: the absence of investors buying property, the low levels of economic activity right across most sectors and the general air of caution and lack of confidence about taking on more debt that many people are expressing. However, the nature of real estate is there are always genuine reasons why people chose to sell in any market and why buyers decide to buy. I just wish there were more of them!

Despite strong competition from the 13 agencies competing in the Gisborne residential property  market, the team at Walker Real Estate has held 20% market share for the first half of 2010. While some agencies may have a good month and are quick to quote a high market share figure for that month, it’s the results over a longer period of time  that really show a more accurate picture. There were 210 sales for 1 January – 30 June. Walker Real Estate sold 42 of those properties. That’s 20%. This is in keeping with the company’s performance since it started operating back in 2006. So what makes the Walker team perform with such consistency? Three key things: teamwork, consistent quality in marketing of client’s property and working a centralised buyer database.

With reported June sales now coming through, the six monthly sales activity for residential property in Gisborne City show we are still in a low activity phase of the cycle. Low sales volumes, but stable prices. That is the picture. Buyers are often slow to commit, showing no apparent urgency to take advantage of the good buying opportunities that exist. For sellers who have good reasons to sell, their properties are getting sold, as owners meet the market. While national market values have risen, local prices are  close to what they were 12 months ago, having recovered from the dip in 2008 and returning to the peak of early 2007.

Click here to view the embedded video.

A fundamental truth that sellers need to understand is this. When you are selling your home, you don’t set the market price. It’s the buyers that do this. Houses are a commodity market, that is, there are plenty of them available for buyers to choose from. If your home represents good value, then buyers will make a move on it and  you will be getting close to a sale. At the end of the day, sellers only have one of two choices, you can either accept the market or you can choose not to. But if you do this, you may end up keeping your home and putting your plans on hold. But is this really part of the plan? Mmmmmm – food for thought.

Click here to view the embedded video.

163 Stout Street is one of those homes that has a great feel about it.Totally understated from the street, this villa is an absolute delight. Full of character and cosy charm, it’s a real show stopper with it’s comfortable interiors and private outdoor living. It is located in popular Mangapapa close to schools and only 5 minutes from the city centre. The sellers have moved on an require a sale soon. Selling by auction in July, be sure to include this property on your short list.

Bare land this size within the city boundary isn’t available very often. This 1.78ha block in Worsley Street has resource consent for 21 sections. The owners have chosen not to do the development, but everything is in place. Buy now, hold for a while and develop when the market turns. What would you pay for a property like this?

This renovated property in Sunvale Crescent is perfect for a family that requires extra living space. The games room is huge, offering a perfect solution to the extra living room requirement. The inground pool will be a great spot for family and friends to share those coming summer days with. The owners are on transfer and are keen to sell. What an opportunity for you!

May confirmed another  month of low house sales in Gisborne City. The 32 residential sales that were recorded for May are similar to previous months which have averaged 35 sales for each of the five months this year. These low volumes signal we are continuing to be in a buyer’s phase of  the real estate cycle. In this market buyers face less competition to secure their dream home, while sellers on the other hand need to have their properties priced right in order to achieve a sale. The median sale price was $245,000 which is indicative of the flat market we are experiencing.

watch this weeks video report

Click here to view the embedded video.

When the market is flat, auction provides buyers with an opportunity to secure property at good market prices. That’s because sellers who choose to go to auction are usually more motivated to sell and are therefore keener to negotiate in order to get their property sold. From a buyer’s point of view, there’s nothing more frustrating than trying to deal with sellers who are ahead of the market. But auctions work for both parties as they provide a greater degree of certainty for both sellers and buyers. At the end of the day that’s what everyone wants; to know you have sold and to know you have bought. Watch this week’s video  for more reasons why you should buy at auction.

Click here to view the embedded video.