Tweet
Land agents claim now is the right time to upgrade
Hamilton real estate experts perhaps not surprisingly say it's not all grim news in the housing market despite the recession
By GREG STACK - Waikato Times | Saturday, 27 December 2008
Hamilton real estate agents predict established home owners will be the winners in 2009.
Lugton's sales manager Simon Lugton believes that the massive drops in interest rates and talk of more to come will prove favourable to existing home owners looking to upgrade.
"It is a great time to upgrade the interest rates are positive and there are good deals out there. For people looking to buy they could be looking at going from a $350,000 home up to a $500,000 home which they couldn't do before," he said.
"It may be harder to sell because of the market but if you can upgrade you can make considerable gains."
Harcourts New Zealand chief executive Bryan Thomson agreed.
"Those with mortgage debt on existing homes or investment properties can reap the benefits of significantly lower interest rates," Mr Thomson said. "Owners with good equity who are looking to buy have the triple bonus of lower prices, more choice and significantly lower interest rates for any debt that may be needed."
If you are selling, agents say that accurate pricing is essential and auctions are definitely worth considering.
"The market is still very price sensitive. If you are going to put a price on your property you need to get it right. Go and have a look around at other homes that are on the market and attend open homes. They are good for seeing what people are doing to sell and also for helping you choose an agent if you want one," Mr Lugton said.
Lodge director Jeremy O'Rourke agreed that accurately priced properties would garner the most attention.
"While buyers are prepared to make a decision on buying in this market, they are still very price sensitive, so getting your price right is the best advice. Don't sit above the market hoping for the best because you will be overlooked. Another option that people are choosing is taking your property to auction."
Auctions have been on the increase over the past year with Lodge averaging 10 auctions per week four more a week than last year.
Property values in Hamilton have continued to decline over the last year, falling from an average of $367,660 last December to $345,785 today.
Richard Allen of Quotable Value said that although the market has been down this year, it has started to level out which is positive news for future sellers.
"There is a reasonable indication that after months of accelerated decline, property values in Hamilton city have started to level off over the past few months," he said.
"The value of the residential property market is now similar to that experienced in January 2007," Mr Allen said.
First home buyers may lose out again in 2009, say agents, as a number of banks have returned to taking large deposits on home loans.
"The biggest challenge first home buyers are facing is the high deposits banks are asking for. For a young person 20 per cent of a house loan is a lot of money," Mr Lugton said.
"Perhaps they can look at borrowing from mum and dad or a relative and then there is always going into it with another person."
He believes that the lower end of the market will be the first to recover which is more bad news for first home buyers.
"House prices in 2009 will probably stay quite static. They've stayed that way for a couple of months and I don't think it will suddenly change," he said.
"If there is going to be an increase it would probably be in the lower bracket of properties and that's just simple supply and demand. We don't have a lot of properties in the $250,000-$400,000 range and that is where we are experiencing a lot of demand."
For investors, Mr O'Rouke suggests looking at established areas where there is high demand.
"Hamilton is still growing and there is always going to a demand," Mr O'Rouke said.
"We are getting a lot of people come into the city from outside the area. What we have found is that in areas like Hamilton East we aren't replacing the stock we are selling and that's where you'll see the demand for property grow."
Hamilton real estate experts perhaps not surprisingly say it's not all grim news in the housing market despite the recession
By GREG STACK - Waikato Times | Saturday, 27 December 2008
Hamilton real estate agents predict established home owners will be the winners in 2009.
Lugton's sales manager Simon Lugton believes that the massive drops in interest rates and talk of more to come will prove favourable to existing home owners looking to upgrade.
"It is a great time to upgrade the interest rates are positive and there are good deals out there. For people looking to buy they could be looking at going from a $350,000 home up to a $500,000 home which they couldn't do before," he said.
"It may be harder to sell because of the market but if you can upgrade you can make considerable gains."
Harcourts New Zealand chief executive Bryan Thomson agreed.
"Those with mortgage debt on existing homes or investment properties can reap the benefits of significantly lower interest rates," Mr Thomson said. "Owners with good equity who are looking to buy have the triple bonus of lower prices, more choice and significantly lower interest rates for any debt that may be needed."
If you are selling, agents say that accurate pricing is essential and auctions are definitely worth considering.
"The market is still very price sensitive. If you are going to put a price on your property you need to get it right. Go and have a look around at other homes that are on the market and attend open homes. They are good for seeing what people are doing to sell and also for helping you choose an agent if you want one," Mr Lugton said.
Lodge director Jeremy O'Rourke agreed that accurately priced properties would garner the most attention.
"While buyers are prepared to make a decision on buying in this market, they are still very price sensitive, so getting your price right is the best advice. Don't sit above the market hoping for the best because you will be overlooked. Another option that people are choosing is taking your property to auction."
Auctions have been on the increase over the past year with Lodge averaging 10 auctions per week four more a week than last year.
Property values in Hamilton have continued to decline over the last year, falling from an average of $367,660 last December to $345,785 today.
Richard Allen of Quotable Value said that although the market has been down this year, it has started to level out which is positive news for future sellers.
"There is a reasonable indication that after months of accelerated decline, property values in Hamilton city have started to level off over the past few months," he said.
"The value of the residential property market is now similar to that experienced in January 2007," Mr Allen said.
First home buyers may lose out again in 2009, say agents, as a number of banks have returned to taking large deposits on home loans.
"The biggest challenge first home buyers are facing is the high deposits banks are asking for. For a young person 20 per cent of a house loan is a lot of money," Mr Lugton said.
"Perhaps they can look at borrowing from mum and dad or a relative and then there is always going into it with another person."
He believes that the lower end of the market will be the first to recover which is more bad news for first home buyers.
"House prices in 2009 will probably stay quite static. They've stayed that way for a couple of months and I don't think it will suddenly change," he said.
"If there is going to be an increase it would probably be in the lower bracket of properties and that's just simple supply and demand. We don't have a lot of properties in the $250,000-$400,000 range and that is where we are experiencing a lot of demand."
For investors, Mr O'Rouke suggests looking at established areas where there is high demand.
"Hamilton is still growing and there is always going to a demand," Mr O'Rouke said.
"We are getting a lot of people come into the city from outside the area. What we have found is that in areas like Hamilton East we aren't replacing the stock we are selling and that's where you'll see the demand for property grow."
Comment