When you’re hot you’re hot: Ben’s Barometer April 2017
When you’re hot you’re hot, but when you’re not…
It appears that the property market has had its fifteen minutes of fame and the obsession with property gains has been put back in the locker. Gone are the packed auction rooms and the frenzied bidding. Headlines are no longer ablaze with stories of sales prices X, Y and Z % above RV. Talk back agenda’s are now not packed with outraged members of the public, blaming ‘Asians’ and whoever else they can think of, for their inability to secure their first home.
The next step in the cycle is typically the slow down, or at least levelling, and the shift from sellers to buyers’ market. There is one key factor which may mean that we don’t enter that phase and that is a lack of supply. If we look at Wellington, since the end of 2015 the number of listings advertised for sale has sat consistently below the seven hundred mark. This is significantly below the long-term average for the city. As home ownership numbers dwindle, population pressures increase and this leads to increased rents. At this point, there is little need or desire for investors to sell their rental properties as not only are they producing better income returns, but they are also benefitting from capital gains. So the question becomes “why would I sell”? And hence the market stays strong. If we look to the Melbourne and Sydney markets, both cities continue to show strong growth even after GFC’s, political uncertainty and large stock deficits. So, while it might not be the topic du jour, property is very likely to battle back from the locker, hit our radio waves and dominate our front pages once again. For the property train spotters, keep an active eye on supply. It’s a matter of when, not if, our market booms again.
The Wellington Market
A few factors are at play in the local market. A drop in the number of active buyers and fewer offers coming in per property. Across the board prices are holding and for good quality, well presented properties, still exceeding market expectations.
As previously mentioned, stock levels are lower than their historical average, meaning buyers are out numbering houses and it is still possible to generate competitive bidding situations. Thanks to a hot rental market, recent rent increases mean investment properties are producing better overall returns. This will help off-set any interest rate rises in the future and the need to off load properties, which in turns keeps supply low.
Wellington Market Quick Facts:
April Fun Facts:
With three small people in our house, Easter, and an abundance of chocolate, is highly anticipated. Easter Sunday falls on April 16th this year. Most people are aware that Easter is a Christian festival, celebrating the resurrection of Jesus. This month, we thought we’d look at some less-well-known facts about Easter.
Did you know:
- The exchange or giving of Easter eggs reportedly dates back to before Easter. The giving of eggs is considered a symbol of rebirth/new life in many cultures.
- The first story of a rabbit (later named the “Easter Bunny”) hiding eggs in a garden was reportedly published in 1680.
- According to the Guiness World Records, the tallest Easter egg chocolate was made in Italy in 2011. It stood at 10.39 meters and weighed an astounding 7,200 kg.
- Hot cross buns used to be baked only on Good Friday, as a symbol of good luck or to ward off evil. These days they begin to appear in supermarkets before you have packed away the Christmas tree.
Encourage your kids to enter our Easter Colouring Competition over on our Facebook page, and they will be in to win a basket filled with Easter Eggs!