the Southern | Market Update May ’22

This month, two long weekends brought a welcomed breather for many as we round off the first quarter of 2022. But not for real estate agents worth their weight in gold making deals in a subdued Auckland market that has declined 4% in the quarter and nearly 8 per cent since the November peak.

Chief economist Tony Alexander calls it a downward “correction” and recently gave 8 reasons why prices will fall 5 – 10 per cent. NZ Herald commentator Ashley Church shares the sentiment in so far as vendor expectation is concerned.

“Forget what you were being told your price was worth three months ago. The environment has changed, and you need to adapt to the new reality.”

This “new reality” however means different things to different people and is by no means negative. For owners who have held their property long enough, a handsome capital gain in this market is still a reality. For owners selling and buying in the same market, a seamless transition into their dream home is still a reality. Because prices are still above where they would otherwise be had the pandemic response measures not triggered the frenzy (Average Auckland prices jumped by an unusual 13.2% in the five-month period to November).

So what we are seeing is this: serious sellers attract serious buyers and to that point, we’ve got plenty! A T Realty clearance rates under the trusted hammer of our in-house auctioneer, Sam Steele, are tracking at 55 per cent as compared to our nearest competitor at 10 per cent. That doesn’t just happen. It is in a flatter market where the expertise and cohesive efforts of the largest sales force in South Auckland come into its own.

Moreover, our clients recognize that their best buyers almost always reveal themselves in the first 3 – 4 weeks and resist holding out for a price that doesn’t exist thus falling into the trap of following a market downwards. Be quick to adjust and get on with living life instead of crystal ball gazing.

One thing A T Realty can’t be accused of is stagnation or being governed by the externals. On 26 May we celebrate the opening of our brand-new Manurewa office with the blessing of local Iwi and support from local community leaders. We’ll also reveal plans for our new Manukau offices expected to be completed early next year and tip a hat to last year’s opening of Mangere’s first-ever real estate office which sort of slipped under the radar due to lockdown conditions. Despite this, our Mangere team has quickly become a pioneering presence alongside our well-established Mangere Bridge office. These developments reinforce our growth, relentless energy and ongoing commitment to delivering a first-class service through high-calibre agents.

Are you thinking about selling or simply want to learn more about the local market? Do not hesitate to contact us to initiate the conversation. We are running a promotion for the month of May offering a $4,400 marketing package for $2,500 to ensure our clients get the exposure they deserve. Any one of our agents can help with that. We’d love to hear from you.

Have a great week.