Sales slow, prices steady

Last month Auckland property sales numbers were at their lowest level for an April since 2008 — and a 33 per cent drop on the first quarter of this year. However, this lower turnover had only a limited impact on values, says Barfoot & Thompson’s managing director Peter Thompson.

“Sales numbers in April were down by about a third compared with the average for the previous three months, yet, given this significant fall, the average and median prices held steady.”

Thompson says the median sales price at $ 850,000 for the month was down only $ 5500 on the average median price for the previous three months.

On a year- on- year basis the median price is up 3.7 per cent.

Thompson says buyers are being far more selective, are taking their time over committing and are only prepared to pay the market price.

Careful who you sell to

Chris Kennedy, CEO of realtor Harcourts is warning people to be cautious when selling to companies offering cash for your home.

He says you shouldn’t sell your biggest asset to a company set up to trade property.

“Unfortunately, it’s something that happens with alarming regularity in New Zealand, and particularly in Auckland,” claims Kennedy.

He says while the idea of saving on estate agent’s fees may sound attractive, it means people who sell to companies have to rely on their integrity as there are no rules or regulations to govern this industry [ unlike the real estate industry]. Kennedy points to a Mangere pensioner who sold her family home to a home- buying company.

“She signed a sale and purchase agreement without advice from her family or lawyer,” says Kennedy.

“Her family is now fighting to stop the sale, which was for $ 560,000 — a sum which appears to be lower than current market value.”

Sellers and buyers should always seek professional independent advice before signing any contract.