Post-lockdown open homes equal offers
Busy open homes prompt agent to ask what are sellers waiting for? Prices to drop? Colleen Hawkes reports.
While the real estate market had an enforced slowdown over lockdown, the first week of open homes and sales in level 2 shows things appear to be getting back to normal.
Ray White offices across New Zealand made it the best of both worlds on Tuesday evening with multiple bidders battling it out both online and in an auction room. Eight properties sold under the hammer for a combined $7,965,000.
Ray White Royal Oak principal Rohan Thompson and salesman James Burry managed the $1,495,000 in-room sale of a home in Onehunga, Auckland.
‘‘Between private appointments and the one weekend of open homes, this property attracted more than 50 groups, because the home represented a higher quality than would usually be found in this area,’’ Thompson says.
‘‘There is such a large buyer pool out there, and we were expecting strong competition – that certainly materialised on the night with eight registered and four active bidders. The numbers we’ve had through and the strong sales we’ve had recently tells us that stock being sold is really active – and we hope it makes people feel confident to come to market.’’
Thompson says he sold three properties at auction the previous week.
‘‘We are finding a lot of buyers are willing to commit; they’re not just browsing.’’
Jamin Marshall, sales manager at Harcourts Merivale in Christchurch, says his team met early Monday, and noted that every open home in the weekend had between eight and 10 groups through each day, although never more than 10 people at any one time, as per the level 2 rules. And the firm is seeing results.
‘‘We have already had preauction offers, including a couple of multi-offers, with another coming in today. We have had to bring forward an auction to this Friday, and the property is guaranteed to sell.’’
Marshall puts the interest down to a lack of stock on the market.
‘‘There is a lot of buyer interest with people wanting to get into the market. People are still seeing value in beautifully presented, high-quality properties.
‘‘Last Friday, we brought forward an auction, and the property at 22 Cornwall Rd, Lyttleton, which was marketed by
Matt Dawson, sold with a fantastic result. It was the second one we sold that week.’’
Interestingly, even during level 3 when only private viewings were permitted, Marshall says all properties had people going through every day, and they were serious buyers.
‘Super strong’ demand in Wellington
In Wellington, a lack of supply is creating a ‘‘super strong demand’’ for properties, says Craig Lowe of
Lowe & Co Realty.
‘‘Right now there are 516 properties on the market in Wellington. The lowest number I have ever seen was 470 and the highest 1300,’’ Lowe says.
‘‘It has been made worse by a lot of sellers deciding to just watch and wait. What are they waiting for? Prices to come down?
‘‘Some sellers have put all their future plans on hold, be it moving towns or downsizing. I understand the shock of what has gone on, but Wellington is quite uniquely placed, with the government sector underpinning the job market, changes to the LVR rules, and a lack of available land for building.
Lowe says the firm had good turnouts at all open homes in the first weekend of level 2, with 40 people through some properties – all carefully managed as per the lockdown restrictions. The apartment featured here had close to 30 groups through.
‘‘My view is fortune favours the brave. Those sellers who have the gumption to get on with it are being rewarded. Volumes are down, but there has been no real impact on prices yet. It may be that we won’t see the full effect till later in the year.
‘‘I think the rental market is more likely to be affected by job losses for younger people and hospitality workers in particular.’’
Steven Glucina, principal officer of LJ Hooker Ponsonby, Auckland, says the weekend openhome numbers for his office were similar to pre-Covid days – he even had two property offers. ‘‘Everybody was pretty confident, and there was a bit of a lift,’’ he says.
‘‘We were quite pleased overall, and despite the procedures we need to put in place, at least we are back in business and it seems a small price to pay.’’
Glucina markets properties in many areas of Auckland and says he has also had two offers on a holiday home in Waiwera.
‘‘Another potential customer in his 70s said he and his wife normally do a lot of overseas travelling and they had a damned good think and decided they wouldn’t be doing that for a while, what with the hassles involved and crowded planes.
‘‘So they have decided to look for a place where they can go for the weekend, where they don’t need to travel far, and the spa resort (unit) they are looking at in Waiwera is just 30 minutes from the city. That was quite encouraging.
And a 1970s Glendowie, Auckland, home marketed by David Thompson and Paul Neshausen of Barfoot & Thompson St Heliers sold unconditionally this week, after just one week on the market.
Thompson said in a social media post: ‘‘We are experiencing a high amount of enquiry/ inspections at the moment. A result of pent-up demand and a reduction in the number of properties on the market.’’
‘‘My view is fortune favours the brave. Those sellers who have the gumption to get on with it are being rewarded.’’
Craig Lowe, of Lowe & Co Realty