Taking market advice from a taxi driver
A family friend recently told me a story that back in the 1980’s, at the height of the stock market, he remembers getting stock tips from a taxi driver. It was at that point he realised it was time to sell up. The same can ring true for the property market. Most people gather market information from media channels. This can be from the radio, print media, blogs and websites with commentators making their own observations and picks about the current state of the market. As with most industries, the individuals who first see the changes, both positive and negative, are those at the coal face. In this case it is the Real Estate agents. A drop off in the number’s attending open homes, offering on property and good properties failing to attract the interest of well researched comparable sales all indicate change. Changes in activity such as this, take anywhere between three and six months to start filtering down and being reflected by the statistics. It is at this time they are picked up by the media commentators and finally trickle down to the intended recipient, by which time it is probably too late.
The Wellington Market
If you have been keeping an eye on the market you will have noticed a drop off in listing volumes in May. Many properties have either sold or have been withdrawn from the market with the potential of re-listing come spring. At this point the market is still very much ‘balanced’ but you may see a small lift over the winter period with active buyers competing for limited stock. Heading towards spring, with the recent interest rate rises, new high end apartment developments settling and an election on the horizon, I feel that buyers will be looking out for what they perceive as good value for money. This has the potential to tip the market their way.
[blockquote]Average days to sell 32
Median sale price $400,000
Percentage increase in last 12 months 1.30% [/blockquote]