1 June 2021 - May sales statistics, the seasons, interest rates, loan to value ratios, government schemes and policies, capital gains tax for investors and choosing a competent real estate agent are all things to take into account when considering selling a house.
Our 10 years of experience in the industry has shown us that, unless there is an economic depression, the best time to sell a house is when you need to - provided you make really good decisions about how you go about it.
For that reason, even though winter has arrived, June is still a good time to sell a house as long as vendors choose real estate agents who have proven themselves to be the best in their industry.
Statistics show now is still a good time to sell a house
It is still a seller's market in most places with median house prices for residential properties across New Zealand increasing by 32.3% from $620,000 in May 2020 to $820,000 in May 2021. The median house price for Auckland is $1,148,000 and for New Zealand excluding Auckland $678,500.
While there are predictions sale price increases will slow in pace for properties in the lower quartile and there has been some recent evidence to support this, it's in the context of the record-breaking increases reported in recent months for many regions, driven by buyer fear of future price rises and of missing out.
In its June report REINZ noted that while it hasn’t seen as many record median prices in May as had been seen in the past few months, there was no denying the residential property market is still holding strong.
Check out this quick reference commission fees scale.
Low interest rates and buyer competition
With interest rates being historically low, (although starting to rise slightly again) lending conditions are more favourable for buyers, but they are competing with each other on the market for fewer properties, something which benefits the seller.
The more competition for a property, the more likely the price will be driven up which although it is a problem for buyers, for sellers it's a great position to be in.
Selling a house in Auckland going into winter? Make sure you get a short list of vetted real estate agents to ensure you get the price your property may now be eligible for if rezoned for development under the Auckland Unitary Plan.
PREPARING TO SELL WINTER 2021?
If you want to sell your house this winter and need to get moving quickly, you will need to find the best real estate agents to get free property appraisals from first.
More important than the highest appraisal is an accurate appraisal as this will ultimately achieve the best price outcome. For that reason you need to know your agent will not over or under price your property.
Running short of time? Find a vetted real estate agent quickly.
What about other times of the year?
Regardless of current conditions, people carry on with house sales and purchases due to the usual reasons like downsizing, up-sizing, shifting to a new location for work, births, deaths, building new, cashing up, wanting a warmer home or being closer to family.
A number of things can affect the decision to go to market regardless of the time of year including:
- Government policies, for instance landlords being required to insulate rentals.
- Mortgage interest rate increases or decreases.
- Bank lending policies, for instance the Loan to Value Ratio (LVR) which effects how much banks will loan in relation to the value of the property.
AGENT DILIGENCE MORE IMPORTANT THAN TIMING
During our decade in the business, we have found houses that ended up listed for sale a second time around did not fail to sell the first time because they had been listed at the 'wrong' time of year. Rather, they were affected by other factors arising from poor decision-making or being ill-prepared.
A few had structural issues that require a high level of real estate experience and legal and technical knowledge to help get a property successfully over the line. These home sellers would have benefited from better due diligence but likely didn't know all that was required.
If you choose the right real estate agent and do proper due diligence you have every reason to be optimistic about selling your house within a good time frame and at the best price regardless of the time of year.
Buying and Selling Checklist A Lifesaver
Selling a house is not something people do every day so we have created a 5-step buying and selling a house checklist to help you achieve the best real estate outcome possible - and no member log-in is required.
Download the Buying and Selling a House Checklist now
seasonal pros and cons for selling a house
- In autumn and winter there are often fewer houses on the market so less competition for buyers.
- Autumn colours can give a property added allure.
- If your home is positioned well for winter sun, warm and insulated, this might be the best time to sell, when there are fewer properties competing with yours.
- Winter sun, home insulation and solar panels can be a real buyer magnet. Cold New Zealand winters can motivate people to up-spec to warmer, insulated homes.
- In winter, make your interior warm and enticing to create a good first impression. Simple additions like a big vase of fresh flowers on the dining table will give your home a lift.
- Spring and summer see many more houses on the market and therefore a greater number of houses competing with yours. That doesn't mean not going to market in spring, but rather that spring and summer are not the only 'best times".
- Summer is considered the best time to sell a holiday home with holiday makers on the look-out.
- Summer can be a great time to sell a lifestyle block when the ground is dry and the grass greener.
- If wanting to capture summer buyers, be aware that in December law firms are winding down and often run with skeleton staff levels in January. Start getting organised around September/October which gives you plenty of lead up time.
- January can be a quieter month with everyone going on holiday, although January 2021 was the busiest it's been in 17 years.
UPSHOT ON the best time to SELL A HOUSE
Now is a good time to sell. But make sure you are properly prepared, something we can help you with.
- Do you know how much your house is worth to sell now?
- Do you know how to compare real estate appraisals?
- How do you know if a real estate valuation is accurate?
- Do you know how to negotiate real estate commission and fees?
- Do you know what to look out for in a marketing plan?
- Do you know how to determine what makes a good real estate agent, for your property type?
Check out Selling a House and if you need any advice, get in touch.
Keep up to date with NZ’s most reputable property advice by adding your details below:
You might also like:
- Why vetted real estate agents are more trustworthy
- Real estate commission and fees exposed for sellers
- Sell your house fast
Article updated June 1, 2021 | About
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.