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REAL ESTATE

Highly-targeted buyer database demand sends real estate agents door-knocking

Bayleys

Wednesday 25 November 2009, 1:33PM

By Bayleys

1,582 views

Doing the leg-work.... Bayleys Real Estate agents Karen Spires, left, and Donna McMillan, hit the streets around Ponsonby in search of properties suitable for their varied and substantial buyer database.
Doing the leg-work.... Bayleys Real Estate agents Karen Spires, left, and Donna McMillan, hit the streets around Ponsonby in search of properties suitable for their varied and substantial buyer database. Credit: Bayleys Realty Group

For the first time in 16 months residential property values are higher than they were a year earlier, according to the latest figures from Quotable Value. A continued shortage of properties for sale is thought to be continuing to push up prices being paid, combined with a ‘log jam’ of potential buyers.

According to data, property values in October were 0.2 percent higher than the same time last year, compared with the 1.1 percent decline from a year earlier recorded in September.

QV Valuation manager Glenda Whitehead said sales numbers had remained relatively static in the past few months, and there was little evidence of a rise in new listings in most areas.

"The continued shortage of properties, especially in the main urban areas, is leading to a continued imbalance in the market with more buyers than available properties," Ms Whitehead said.

Several factors could account for the lack of strong spring activity. Many owners would have locked in lower long term interest rates at the start of the year and would be concerned about losing those rates if they sold, she said.

Auckland area values were up 2.5 percent on a year ago.

Leading estate agents Karen Spires and Donna McMillan from Bayleys Real Estate said the shortage of listings was frustrating many of their sizeable buyer database – some of whom had been looking for properties in the Herne Bay/Ponsonby/Grey Lynn area for up to a year.

“The market is tight out there at the moment and that has thrown the onus back on us to find new listings that specifically meet buyer briefs,” said Donna McMillan.

“Buyers are very specific in what they are seeking. Those specific considerations range from the number of bedrooms required or the total size of the property, through to whether they require a renovation project or a home where all the renovations have been completed… and of course price.

“Added to that, buyers are far more informed now than they ever have been – and can spot a fairly priced property quite easily against one where a vendor is purely speculating on the price they are seeking, but aren’t necessarily prepared to meet the market,” added Donna McMillan.

“That’s why some properties are selling quickly, and others aren’t moving at all.”

To source more stock to meet buyer demands, Donna has spent the past three weeks literally door knocking around the area between Ponsonby Road, Jervois Road, Richmond Road and Bayfield Park in an effort to add more homes to her and Karen’s listings catalogue.

“The media is now always talking about ‘cashed-up buyers’ - and we have these in record numbers,” said Donna McMillan.

“It’s been a fantastic experience getting out in our ‘patch’ and meeting home-owners who, while they may not be interested in selling at the moment, are interested to hear about what’s going on in the market from professionals, while we listen to their thoughts on values.

“On the whole, the majority of home owners we spoke to have taken into account the global economic crisis of the past 20 months and the effect this has had on the housing market – leading to a realignment of property values. Those are the type of vendors, who when their property is taken to market, will generally sell.

“There are some people though who, basing their calculations on emotion rather than the raft economic data available, have unrealistic expectations of what their property would be worth if taken to market. Those are the properties which you see hanging around for three, four, five months, then moving from one real estate agency to another.”

Here are just a few of buyers Donna and Karen have on their Bayleys buyer database in the area they have been targeting:
 

  • A young couple recently returned from the UK looking for a contemporary two bedroom premises with some backyard space priced up to $650,000 - $700,000.
  • A married couple in their 30s looking for a three-bedroom villa with ‘do up’ potential on approximately 600 square metres priced up to $800,000.
  • A young single professional looking for an open-plan three-bedroom villa in the Ponsonby/Grey Lynn/Westmere areas, with off-street parking and indoor flow – priced between $900,000 - $1million.
  • A couple in their 30’s with three toddlers looking for a four bedroom home (with two bathrooms) in the Ponsonby, Grey Lynn, Herne Bay, Westmere suburbs. Must be sunny, no do-ups, in the price range of $1.2million - $1.5million.
  • A family with two children looking for a four or five bedroom fully renovated turn of the century home – preferably with a swimming pool – priced up to $2.5million.
  • A family seeking a four or more bedroom house with double car garaging and views in Herne Bay or St Mary’s Bay areas in the $2million - $2.25million bracket. They would prefer to add value or renovate but happy if it is the finished product.