Despite market pessimism for reasons well documented by media, May was a month of solid real estate activity across the A T Realty Group benchmarked by an early 81 per cent strike rate in our auction rooms and subsequent results continuing to track notably higher than our next best competitor (who for the record achieved a mediocre 21% in the same week and have remained around that level for the month).
As an example, 38 Marjorie Jayne Crescent in Otahuhu reached an impressive $1.631M under the hammer with 10 active bidders and an additional 17 bids after being announced on the market. Congratulations to Isha and Nav Kaur for their stellar performance on the campaign and ensuring rewards were reaped for an elated client cashing in on house prices that had risen strongly over a long period of time. As we continue to say, the broader perspective is important. Whilst the market is weaker than it was compared to last year’s “1 in 100-year peak,” long term holders of property remain situated on the right side of hearty capital gains and are wise not to delay life decisions to play the “wait and see” game in a market that has moved from “nuts” back to normal.
To that point, we encourage buyers to act decisively too. Although it is apparent that FOMO has left the building
, buyers play a risky game to wait for further declines before making a purchase. You only know the market has bottomed out after it has bounced back and by then it is too late. Savvy pre-approved buyers use the cash available to them – particularly in this season of increasing interest rates where future stress testing can shave thousands off your purchasing power. The truth is that great properties will attract great buyers if expectations are in keeping with current market conditions.
An observation that will be of interest to landlords – a word of caution if you are contemplating significant rent increases that could compromise affordability for quality tenants. Days on market are increasing to find good tenants for vacant rentals. Rising living costs are forcing the issue with many now considering options outside of Auckland and even abroad, meaning you may want to test the temperature of your tenants in this regard. Any one of our property managers would be more than happy to help.
In other news, last week the A T Realty Group
celebrated the opening of our newly acquired and refurbished Manurewa
offices with the blessing of the Waikato-Tainui Iwi and the support of local community leaders. It is an impressive facility that empowers our agents to continue to serve buyers and sellers with care and excellence. The occasion also marked our 10th birthday, having grown from humble beginnings to become the dominant South Auckland agency with offices in Manukau
, and MangereBridge
, as well as Manurewa, and the 360 Property Management team
. We are immensely proud of what has been accomplished to date, are excited about the future, and humbled that you would be a part of it.
Have a great week,