High house prices say folk tired of recession. New Plymouth prices surge. Taranaki Daily News 15 September

High house prices say folk tired of recession. New Plymouth prices surge.

Taranaki Daily News 15 September

Well, quite frankly, no. This is reliance on bald statistics without any investigation as to why prices (NOT values but prices) have gone up 4% in a month. Let me be clear. No house in New Plymouth experienced a 4% capital gain in August, unless it had work done to it. The median price rose because the houses that sold in NP in August where on average 4% better properties than those sold in July. This happens from time to time. Median prices have remained lowish over these last few months because investors have been active, and they shop at the bottom of the market. Also, the new Government initiative the Welcome Home Loans have certainly bought many new first home buyers into the picture. That initial burst of interest is waning, but interest over the rest of the market is increasing and that means better homes, properties of higher value are now showing up more in the median price statistics.

This market is continuing to have plenty of buyer interest, but it is notable that although median prices rose 4% in the month of August, volume (sale numbers) dropped over 16% from 96 sales in July to only 80 in August. At the same time, to put all this into perspective, there has been about 2.4billion dollars worth of property bought & sold in New Plymouth every month over the last 6 months. That is a large market, one that will neither lift nor fall significantly over night. All these numbers will move about naturally month to month, they shouldn’t be the headline news the papers make them. Essentially its business as usual.

High house prices say folk tired of recession. New Plymouth prices surge. Daily News 15 September

High house prices say folk tired of recession. New Plymouth prices surge.

Taranaki Daily News 15 September

Well, quite frankly, no. This is reliance on bald statistics without any investigation as to why prices (NOT values but prices) have gone up 4% in a month. Let me be clear. No house in New Plymouth experienced a 4% capital gain in August, unless it had work done to it. The median price rose because the houses that sold in NP in August where on average 4% better properties than those sold in July. This happens from time to time. Median prices have remained lowish over these last few months because investors have been active, and they shop at the bottom of the market. Also, the new Government initiative the Welcome Home Loans have certainly bought many new first home buyers into the picture. That initial burst of interest is waning, but interest over the rest of the market is increasing and that means better homes, properties of higher value are now showing up more in the median price statistics.

 This market is continuing to have plenty of buyer interest, but it is notable that although median prices rose 4% in the month of August, volume (sale numbers) dropped over 16% from 96 sales in July to only 80 in August. At the same time, to put all this into perspective, there has been about 2.4billion dollars worth of property bought & sold in New Plymouth every month over the last 6 months. That is a large market, one that will neither lift nor fall significantly over night. All these numbers will move about naturally month to month, they shouldn’t be the headline news the papers make them. Essentially its business as usual.

The OCR stays at 2.5% and the New Zealand economy is expected to make slow gains through the rest of 2009 and 2010.

The OCR stays at 2.5% and the New Zealand economy is expected to make slow gains through the rest of 2009 and 2010. That’s what Dr Bollard is telling us as of yesterday. It’s encouraging stuff really by comparison to recent months. Tony Alexander, BNZ is giving us a similar scenario on the future, but is even more positive about property prices due to a national housing shortage. I agree with these sentiments. In New Plymouth we have a shortage of stock to sell and a surplus of cashed up buyers we can’t satisfy. These are not huge numbers, but enough to keep us constantly short of good property to offer, and more than one buyer on most properties. Our commercial agent is flat out selling industrial land and leasing retail and office space. There is a long way to go before we declare the next boom is on, but business is steady and demand is high. We’ll settle for that in Taranaki meantime. Summer is starting to prove lucrative in the North Taranaki district now with all the events we seem to be getting here. Parihaka, Womad, Americana, Taranaki festival of Arts (on now), Rhododendron festival, many top class Concerts at the Bowl of Brooklands, Rugby at Yarrow Stadium, World cup Triathlon, Davis cup, One day cricket, and on it goes all summer. These events certainly stimulate the local economy with all the visitors and locals alike spending money. Not only that, but the whole demeanor of the city and its citizens is uplifted, confident, expectant and actively supportive of the whole events thing we seem to have here now. We have no doubt Spring & Summer will treat us well in terms of business and pleasure here in Taranaki.

The New Plymouth market suffers a stock shortage

Realestate agents at Harcourts New Plymouth office are crying out for properties to satisfy buyers who just can’t find what they are looking for. Although the common perception is a soft market, due to the recession, the fact is we are very short of houses to sell. The competition in the lower price ranges particularly is causing buyers to compete in multiple offers more often than not.
It’s a funny old business, because I know from 20 years of experience that come spring and early summer there will be lots of property listed. It happens every year. It’s a great time to show a property off no doubt. Longer warmer days, gardens looking a picture, time available to paint, wash and attend to little jobs, making the presentation as good as it can be, and that’s great. However the housing market, like every other free market is about supply & demand. Just now the supply is not satisfying the demand, which offers a window of opportunity for local sellers between now and the summer. If you are going to be selling then – think about taking advantage of the present stock shortage and call your preferred Harcourts agent now on 0800 we sell, or log onto www.taranakiharcourts.co.nz and see the competition for yourself.

Harcourts Academy achieves NZ industry first

Harcourts Academy achieves NZ industry first
Wed, 03 Jun 2009
In a New Zealand real estate industry first, Harcourts has been approved to provide salesperson certification courses in association with the Real Estate Institute of New Zealand Industry Training Organisation (REINZ ITO).
In addition approval has also been given to Harcourts, New Zealand’s largest real estate group, to facilitate on-the-job training sessions for Harcourts sales consultants who are working towards their National Certificate in Real Estate.
Head of the Harcourts Academy Irene Green says being approved to work in partnership with the REINZ ITO is fantastic endorsement of the calibre of Harcourts’ courses and its training team.
“Formed some 20 years ago the Harcourts Academy has a long standing reputation for providing high-quality training and has been operating as a Registered Training Organisation in Australia since 2004. It’s fantastic we now have approval to assist our people in New Zealand to achieve their real estate qualifications too.”

As Mrs Green explains, from 1 June prospective sales consultants who have secured a place of engagement with Harcourts having passed a comprehensive screening process will be able to gain their Salesperson’s Certificate by completing Harcourts’ unique, entry-level Salespersons Programme which is being run in-house by the Harcourts Academy in association with the REINZ ITO, who will be responsible for final assessment.
The Harcourts Academy’s programme incorporates:
• 10 days of online learning utilising specialised software available through Harcourts e-cademy;
• written tasks submitted to the REINZ ITO for marking;
• eight days of facilitated classroom-based learning (in two blocks);
• 45 days on-the-job coaching.
Mrs Green says Harcourts has taken 16 months to redevelop its entry-level Sales Programme to ensure it meets the REINZ ITO’s requirements and better equips participants to deliver a professional, high-quality service to their customers.
“What we’ve ended up with is an excellent programme that sees students not only achieving the requirements for sales certification but also receiving substantial study materials and a complete Harcourts ‘start-up’ compendium for use in the field,” she says.
Meanwhile, the Harcourts Academy has already started to provide training to assist existing Harcourts Sales Consultants to achieve their National Certificate in Real Estate.
“About 150 Harcourts people around New Zealand are already currently completing their National Certificate with the support of classroom and live webinar study groups facilitated by the Harcourts Academy, and the feedback has been extremely positive,” Mrs Green says,
“Completing the National Certificate in Real Estate is a big commitment but, from the feedback we’ve received, having the opportunity to participate in Harcourts Academy-facilitated sessions that are focused on assisting students to complete the requirements makes it easier and more enjoyable.”
REINZ ITO CEO Lesley Southwick says she commends the Harcourts Academy for being so proactive and pioneering in terms of training for both new entrants to the industry and more established realtors.
“These two new joint initiatives bring together a lot of work by Harcourts and our organisation, enabling a career pathway for new salespeople, who will be able to be certified and to hit the ground running after doing Harcourts Sales Programme, and also for established salespeople who want to take the extra step in their qualifications.
“We’re pleased to be able support Harcourts to become the first New Zealand real estate organisation to be able to offer salespersons certification courses in association with us, and also to comprehensively take up the opportunities that on-the-job training offers.”
Ms Southwick says she is confident the National Certificate will become an integral part of the education requirements for all salespeople in New Zealand in future and says the Harcourts Academy’s drive for higher level education may prove to be a huge advantage.

About the Harcourts Academy
The Harcourts Academy was formed some 20 years ago and quickly gained a reputation for providing the finest real estate training available. Registered as a national training provider in Australia in 2004 and recently approved to conduct the New Zealand salespersons certification course the Harcourts Academy, which includes 11 full-time trainers and more than 40 topic specialists, delivers a range of training programmes to the Harcourts group throughout Australasia, Fiji, Indonesia and South Africa.
For further information, contact:
Irene Green
Head of Harcourts Academy
Harcourts International Ltd

There is only one way to go now with New Plymouth property – but it’s going to be a slow old road for a while.

There is only one way to go now with New Plymouth property – but it’s going to be a slow old road for a while. Indicators we use to gauge market activity are flat lining in the main, but one or two are on the creep up. New Plymouth sales volumes have been higher in the last 3 months than over the last full year. Total sold value has also been higher over the last quarter. NP Median price April @ $290,250 is almost exactly the average of median prices this last year. All this suggests a flat line market, but with an inclination to more activity and volume. All positive indicators.  

The OCR dropped 50 points two weeks ago, but the banks have resolutely refused to lower floating rates. They say the cost of their funds is not geared to OCR rates – but they only pay 4% on deposit. It’s all a bit one sided, but it would seem to indicate the bottom of the interest rate trend. Seems by what the reserve bank is saying that these current levels will be around until late 2010.

The future looks steady with slow growth in New Plymouth. Investors and first home owners should be actively looking. Get into the property you want now. Between the cost of the property, and the cost of the money, it will never be cheaper.

The Banks are screwing us down now. They may pay us the profits later do you think?

The Banks are screwing us down now. They may pay us the profits later do you think?

I asked one of my bankers a fairly simple & logical question. One I would have expected the media to pose before now. It was this:

In these times when interest rates are falling, those of us with fixed loans are required to pay a break fee to repay the loan early. The reason is that the bank looses money because they had to buy the funds at the rate prevailing at the time the deal was done. Fair enough. I can see that is reasonable. However, when the reverse situation is present and rates are rising, we never hear of people who repay the loan sooner than the fixed period ends, receiving a payout because the Bank has made a windfall profit. Wouldn’t it be reasonable to expect that both sides of this arrangement was honoured by the Bank, and not just the side where the Bank is out of pocket? It’s inequitable and verging on usury how the Bank dictates that the customer will cover the losses it suffers, but is not compensated in any way for profits on the other end of these deals.
This may sound like a gripe, I guess it is really, but it’s a serious question I would like a serious answer to.

My Banker has not answered this question as yet. I will press him soon. Ask your bank the same question, in your own way of course, and press them for an answer as well. I will be interested in feed back on this topic. Any Bankers out there?

You can contact you bank through these links:
ANZ-National, ASB, BNZ, Kiwi,TSB, WestPac

Harcourts wins international marketing award

Harcourts wins international marketing award
Apr 2009
Harcourts International has won the Best Property Marketing Products award in the marketing contest of prestigious global real estate network Leading Real Estate Companies of the World®.

In addition Harcourts has also been placed in the top three in both brand and general marketing products categories in the contest, out of more than 700 eligible real estate companies across 39 countries. Winners were chosen based on creativity and overall presentation, and effectiveness in the marketplace.

LeadingRE Vice President of Communications Robin LaSure says the contest showcases the finest marketing in the industry and is an opportunity for Leading Real Estate Companies of the World® affiliates to share strategies for branding, advertising and company promotion.

“To be recognised for excellence among this distinguished group is an honour, and we commend Harcourts for its superior marketing efforts,” he says.

Harcourts International Head of Marketing and Communications David Martin, who accepted the Best Property Marketing Products award on behalf of Harcourts’ marketing team when he attended the LeadingRE conference in Arizona recently, says the contest results are outstanding recognition of Harcourts’ marketing products “and puts us amongst the top real estate brands internationally”.

“Placing first in the property marketing category reinforces Harcourts commitment to providing exceptional property promotion for our clients,” he says.

Harcourts, which is the largest real estate group in New Zealand, the fastest growing in Australia and has offices in China, Fiji, Indonesia, South Africa, Botswana and Zambia too, joined the Leading Real Estate Companies of the World™ in 2003 as the exclusive South Pacific member, in order to provide international marketing exposure for Harcourts’ clients’ property.

Harcourts International’s Managing Director, Mike Green, is a LeadingRE board member and he also chairs the organisation’s International Advisory Board, which is comprised of non-U.S. members committed to expanding the value proposition of the company’s international membership programmes.

With more than 5500 offices and 170,000 sales associates in the United States and 35 countries abroad, Leading Real Estate Companies of the World™ affiliates sell over US$400 billion in home sales representing more than 1.3 million transactions annually, outselling any international franchise and leading the world in the sales of $1 million-plus homes.

“This is a fantastic effort and a well deserved award for our Company. Throughout New Zealand, Australia and now the whole world we are having our remarkable marketing efforts recognisded”. John Christiansen, Principal Harcourts Taranaki.

What a year. We are stronger now!

What a year. We are stronger now!

Today is the last day of the 2008/09 year. What a ride! It’s been very interesting. As a member of New Zealand’s largest and most successful real estate organization we have anecdotal evidence from all over New Zealand about the market, where it’s gone and where it may be going. The only thing certain is we are all stronger now! Our colleagues in the metropolitan markets have suffered a large downturn in volumes and prices. The Provinces, especially Southland & Taranaki have been the least effected, although we too have suffered declines. That’s enough about the past – the future is looking good!

Having spent the last few months working on our business, consolidating where possible, strengthening where required and training training training, we are ready to move into 2009/10 with gusto. Our web presence has grown exponentially in these last 12 months. http://www.taranakiharcourts.co.nz/ now enjoys 11,000 unique visitors each month, with a total of over 25,000 separate visits. BluePrint is now established as Taranaki’s premier print media publication and continues to attract advertisers who now realize the market penetration it provides compared to any other. The team has been given the tools they need to succeed. Sales & marketing training continues relentlessly at Taranaki Harcourts, and in addition 10 of our staff are doing NCRE papers to complete the NZ Certificate in Real Estate. They know it’s a technical and complex business, and they are working on continued education. This will become mandatory when the new Real Estate Agents Act 2008 takes effect in November. As usual, we’re moving quicker than the rest.

We’re ready! Bring on 2009/10. Our team is champing at the bit. They are the most thoroughly trained and prepared realtors in the country. We have provided them with the best technical and administrative support available. You will be talking to one of them sometime this year. Ask them about real estate and the market. They know what’s required.

The big Banks are slow to react to the lowering of interest rates.

The big Banks are slow to react to the lowering of interest rates. This last week not one big bank lowered floating rates, this after a 150 point drop in the OCR. I have been monitoring rates using the great website interest.co.nz, who will email you with a weekly update, well worth while if you want to track these things.

 

Why is this? Shouldn’t we borrowers start to get some relief now the OCR has plummeted 300 points in 2 months? You would think so. The OCR is 3.5% now. The big banks are dragging the chain at your expense. I know that deals are being done with new lenders that are lower than the published rates. The criteria are tighter now, 20% deposit (or property equity) is almost mandatory. So the new lenders are solid risk, no real risk at all. They are getting the benefit of any ‘discretion’ at present, not you and I who have been faithfully paying floating mortgage rates up to 10% for the last 12-18 months.

 

The answer is very simple. Complain. Ring your ‘relationship banker’, or whatever they call the lending officer who isn’t looking after you currently and ask for a review of your floating interest rate. If the arrangement you have now is fixed, I’m afraid you’re stuck with it for the term agreed. You can’t complain about that. You were offered a deal and decided it suited you then. To be fair, that’s the deal you need to ride through to its expiry. However, if you have a floating mortgage, ring up and find out why it’s so high. Ask them to quote the best possible floating rate a solid new borrower will get. That’s the rate you want and should have.

 

There is another question being asked right now. What will it cost to break my fixed rate? Is it worth the cost? If you want to know ask your bank for the cost – and also ask for the formula. It should be in your mortgage document and will allow you to work it out. I noted with interest that the BNZ were over charging a Sunday Star Times (front page story, two weeks ago) reader thousands more than the calculation formula

in his mortgage provided for. If you can’t work it out ask your lawyer or accountant to do it for you. It may well be worth the $100 he charges you.

 

In summary, the OCR is 3.5%. The major banks are offering you, their present customers, about 7%. New borrowers often get better deals. This situation will remain while you take it lying down.

 

One good solution is to ask a good mortgage broker to check what’s on offer at all the lending institutions. Our broker Mortgage Express have some very good options available. They are usually able to get better deals for customers at their own banks! Harcourts Broker Partner Kerry Kelly has had referrals from bank managers who realize she is better able to raise a loan for the customer than they are.

 

Be in control of your finances and loan arrangements. Tell your bank or broker what you want and expect them to deliver. If you have equity and a good income they want to do business with you. Make it on your terms. Get a trusted broker like Kerry Kelly to investigate all the options. No cost, no obligation, high chance of success. Find a good property easily with Harcourts.

 

John Christiansen