In the past, we have written about the supply and demand imbalance that traditionally happens during the winter months, but this year it is so pronounced that I felt it would be worth writing about it again, as this information could be incredibly valuable (potentially worth tens of thousands of dollars) to anyone considering selling soon. Over the last two to three weeks the media has been offering anecdotal stories of home buyers rushing to new listings and open homes being swamped with buyers. This is absolutely true. Over the last few months our team has been overwhelmed by the number of people attending open homes.
What is causing this activity? The following graph (courtesy of realestate.co.nz and Alistair Helm) shows conclusively that the potential pool of buyers does NOT drop in proportion to the large drop in listings that occurs at this time of year. This causes a shortage of supply that is most pronounced in the months of July through to the end of September. This is in fact the absolute optimal time of the year to sell.
View the graph at: Is summer really the best time to sell a property?
This is what we are currently experiencing: Between 25 and 50 groups attending each properties open home, large top ups. This can be well in excess of 100 individuals at any one open home and is an absolutely ideal scenario for anyone trying to sell their house. With this level of buyer interest you are highly likely to end up with a multi-offer scenario and a premium for your property. In the last few weeks we have seen situations like this:
|Address||Suburb||# Groups||Rateable Value||Sale Price|
|Tiber Street||Island Bay||39+||$540,000||$671,375|
|Miramar North Road||Miramar||45+||$420,000||$505,000|
|Moselle Street||Island Bay||19+||$660,000||$741,000|
|Clyde Street||Island Bay||24+||$620,000||$651,000|
|Adams Terrace||Aro Valley||34+||$420,000||$541,000|
|Hungerford Road||Houghton Bay||24+||$330,000||$391,234|
|The Parade||Island Bay||33+||$640,000||$901,000|
The reason for this phenomenon is ironic: Everyone believes their house looks better in summer; the sun is shining, the garden looks better and people are happier. This perception is so common that the OPPOSITE actually becomes true.
There is still plenty of time to sell before the spring rush. The stats show that late August and early September is actually the best time of all, which could potentially add tens of thousands of dollars to your sale price through increased competition, provided you start the ball rolling now. Pick up the phone now and call me on 021-764-647 and I can give you an assessment of your homes value and tell you exactly the right strategy to extract a premium from the marketplace. There is absolutely no cost or obligation – it’s free.
Best wishes, Craig