The year in review
That’s right, we’re hurtling towards party season where the day to day grind makes way for champagne and frivolity. This month we look at the year in review and share our motto for buying property in 2020.
The year kicked off the same way as 2018 ended but started running out of steam quickly. We saw low attendance at open homes and fewer offers, if any, at the deadline. Media reports talked up a sluggish Auckland market. And with confidence dwindling in the big smoke, there were concerns as to where would be the next market to take a dive. Couple that with a pending capital gains tax and the market really flattened out. With market fever behind us and stock levels relatively stable, we started to see the return of the serious investor – a species not seen since the LVR changes of 2016.
With a capital gains tax now off the table; the housing market had a new breath of life. Inflationary pressures forced The Reserve Bank to make their first cut to the OCR with more pitched to follow. Pressures on rental accommodation saw rent rises across the country with many a median rent hitting the headlines. With term deposit rates not worth the paper they were written on, Mum and Dad investors started to turn to property again as a favourable investment. And so, it began again: open home numbers on the climb, multi offer situations at most deadlines and prices heading upwards.
Spring kicked off with a hiss and a downpour but that wasn’t enough to dampen numbers at the open homes with numbers at the door back to 2016 levels. The FOMO brigade were back talking property prices around the water cooler as the OCR was slashed again. Prices lifted a little, maybe not as much as owners would have liked. The last two weeks have seen the market head into its seasonal hibernation a bit earlier than other years. But with that being said, our post Wellington Anniversary stock is looking incredibly healthy.
Tips for buying the best on the block
There’s a slightly tongue in cheek prayer at AA meetings which could easily be applied to our recommended approach to real estate acquisition;
“God grant me the serenity to accept the things I cannot change, courage to change the things I can and wisdom to know the difference”
In summary, make your purchasing decisions on great fundamentals such as sun and location, and change the things you have control over such as the colour of the walls. Follow this rule of thumb and you will end up owning some great homes.
That’s us, over and out for another year. We wish you the happiest of holiday seasons and look forward to bringing you more market insights in 2020. Enjoy!
WELLINGTON MARKET QUICK FACTS
Average sale price by Ward:
What’s on this December in Wellington:
Johnsonville Christmas Parade 2019, Johnsonville Broderick Road, Johnsonville Road, Wellington
Join us for another amazing Christmas parade through the streets of Johnsonville celebrating local community, friends and family.
The join us in nearby Memorial park for a meet and greet of all your favourite characters; Superheroes, Princesses, Paw Patrol just to name few!
Alice In Wonderland – The Pantomime, Circa Theatre, 1 Taranaki St, Wellington
Join Alice and our favourite Dame in a madcap adventure down the rabbit hole. Why is Wellington in peril? Is it because the Queen of Hearts is threatening to unleash the jabberwocky? And what about those magical tasty tarts? Alice, the white rabbit and Dame Marjori are joining with the Mad Hatter and friends in a crazy adventure of ups and downs and Pantomime fun. Will Alice rescue her frantic furry friend? Will our Dame find happiness, fame and fortune?
Great Moscow Circus Waitangi Park, 107 Cable St, Wellington
After 20 years, the world’s most renowned production is making an extravagant return to New Zealand. Watch as international talent brings to life The Great Moscow Circus!
Delve into the whimsical world of Moscow, where the decadence of Russian tradition meets a multi-sensory experience with modern twists and turns.
If you, or anyone you know, could benefit from a considered market assessment by Wellington’s only licensed agent and registered property valuer, please do not hesitate to call. We are always happy to help.