Houses For Sale in Auckland – Sales Increasing

The NZ Herald of September 14th 2011 published in article on page 4 headed “House prices and sales on rise”. The article emphasised that the value and volume of homes sold over the month of August both showed increases. As has been the trend over the past 2 years, any increases outside Auckland were of a very modest nature, largely in the 1 – 2% region (measured over the previous year).

Houses for sale in Auckland, however showed much greater increases with the Real Estate Institute (REINZ) figures quoted showing median value increases of just short of 3% in the eight month period since January. Projecting forward, this will lead to an anticipated increase in median values of around 5% for years end 2011.

When reporting on houses for sale in Auckland, REINZ figures lump residences (houses) and appointment/town houses in the same category. The largest group of sales are in the CBD apartment market which has been deflated for some years. Couple this with some areas of the North Shore and Eastern Suburbs where plaster town houses predominate (for this read “leaky homes”), it is a reasonable conclusion to assume that free standing houses in good locations are on track to rise somewhere in the order of 10% in 2011.

From the figures on our own sales board, I can say that this extrapolation to 10% anticipated growth is about right. There is a real shortage of houses for sale in Auckland when measured against the demand. Our office is observing that for a good home in “Greater Ponsonby” we can expect in excess of 100 inspections over a 3 week Auction campaign and 4 or 5 bidders is reasonably normal. Earlier last month (August) we saw two homes attract in excess of 200 inspections over 3 weekends and the number of registered bidders exceeded 15 in both cases.

When I compare the number of houses advertised for sale in Auckland, particularly in the primary medium of the Saturday Herald Homes supplement, it is clear that there is a drop in available homes of approximately 40% over the volumes on offer 2 or 3 years ago, the main difference being that there are now approximately double the number of buyers having sufficient confidence in their personal circumstances to commit to purchase.

Confidence is on a gradual but solid increase.

In the NZ Herald article quoted earlier, ANZ economist Mark Smith said he was surprised by the REINZ figures. “The increase in sales volumes was stronger than we had expected. Sales are continuing to trend up with volumes up 5.4% seasonally adjusted in the three months to August.

With sales volumes around 24% below historical averages as a portion of the housing stock, low mortgage rates on offer, and an improved labour market environment, there is considerable scope for sales to move higher,” he said.

As an industry observer and participant, it is clear that in general terms the future is bright for those looking to transact in houses for sale in Auckland, and that some regions (normally clustered around the CBD) will show very positive growth over what has been a gloomy preceding 3 years.

Basics of Putting Up Houses For Sale

Many homeowners are planning to put up their houses for sale. The reason behind this decision varies from family to family. Some want to move on to better homes while others want to just close a chapter in a particular city. So what does one need to do in order to put up their houses in the market? What are the basic requirements that you need to meet in order to successfully complete the sale? Here are a few tips to help you.

Most home owners hire the services of real estate agents who help in putting up the property for sale and advertising the property in suitable places. The agent brings prospective purchasers to the house and highlights the unique features of the property to them. In order to make sure that your house gets sold fastest, you need to make your home as presentable as possible.

Buyers do not expect the best in second hand homes, but a more presentable home has a higher market value in the real estate business. Therefore, homeowners are advised by agents to take up the following steps that will help them to get a lucrative deal on the sale. Here is a list of the important measures required to optimize the sale:

1.Repainting of the house is important to get a fresh look into the property. Holes and cracks must be filled by using proper plastering. Windows are to be washed and kept in a clean condition.

2.The front porch, door, walls and decks must be cleared of any clutter that usually accumulates due to long term exposure to weather. The main aim is to give a welcome look to the front of the house.

3.Landscaping is an important aspect of any house and requires to be attended to at the time of sale. Owners need to clear any junk and make the area in the front and back of your house free of debris.

4.The interiors of the house need to be kept in a clean condition with revamping of all the parts of the house including the walls, ceilings, carpets, doors and windows.

5.Highly frequented areas of the house like the bathroom and kitchen, undergo maximum wear and tear. Therefore, these areas of the house need more repairs and cleaning. If appliances are being provided then you need to check if all are in good working condition.

You need to undertake these steps so that your property has more demand among other houses for sale.

Houses For Sale in the Foreclosure Market

Houses for sale in the foreclosure market come about because of the inability of the home owner to make mortgage payments. This process, if finalized is very damaging to a credit history and will prevent that home owner from purchasing on credit for quite some time.

The lender forecloses on a property when the home owner has failed to make three consecutive payments; this process takes anything from sixty days in some states to two years in others. Not only that, once the foreclosed property has been sold at auction the lender is able to obtain a default judgment to cover any further outstanding losses they incurred on sale of the property.

Houses for sale in the foreclosure market have increased by 72% since the year 2005, at present the real estate market is in a crisis. Much like many other financial markets! This makes it more simple than ever for investors and home buyers to purchase houses for sale in the foreclosure market. It does not take and experienced investor to take advantage of the present buyers market, there are a glut of foreclosure houses for sale presently. Both government owned, and lender or bank owned.

The three methods of buying foreclosure houses for sale include in the pre-foreclosure phase. This is a more difficult process and the investor has to really do their homework. It means finding out where houses for sale in pre-foreclosure are (generally a county courthouse search will accomplish this), trying to negotiate with a home owner (often very difficult to do), finding out what liens are on the property, inspecting the premises, and calculating all costs in order to make and offer to the lender and lien holders as well as the owner. The owner can negotiate a short sale with their lender in this phase and if they have done so, finding a willing buyer would be to their benefit. By running an ad which reads “Houses Bought for Cash”, might be a way to draw prospective pre-foreclosure house owners to your notice.

The second method is the foreclosure of the mortgage where the houses for sale go on auction. Many are purchased by the lender and become their property, many are bought by investors. Purchasing houses for sale during the auction phase also required the same amount of preparation as purchasing in the pre-foreclosures phase.

The third method is buying houses for sale one they have been foreclosed and auction and are the property of the bank. This is easiest method of purchasing houses for sale in this market as all the preparation has been done for you. It is also the least risky, particularly for a new investor, and some bargains in this market can be found.

Regardless of which method you want to use to purchase houses for sale in the foreclosure market, preparation, research and education are key to success. Do your homework and find out everything you can regarding the property and you just might find yourself with a beautiful home on your hands.