We are excited to announce that the wait is finally over. Please come along to our open day to check out our new Ilam Office at 292 Clyde Road on Tuesday 19 March 12pm-4pm.

Once again Harcourts Holmwood are offering a $500 prize to the first man and first women that break the current race records in the upcoming Le Race event, Saturday 23rd March.

Le Race is a 100km cycling race with mixture of challenging hill climbs, fast flats and exhilarating downhills that travels from Cathedral Sqaure in Christchurch, across an extinct volcano, to the French surrounds of Akaroa.

It has been won by some of the country’s leading cyclists, including nine time Tour of Southland winner and Commonwealth Games medallist Brian Fowler, former junior world champion Jeremy Yates, Commonwealth Games representative and Olympian Heath Blackgrove, six time New Zealand duathlon champion Mark Bailey and in recent times Christchurch pro cyclists Sam Horgan, Michael Vink and teenager Keagan Girdlestone, who in 2014 was the events youngest ever winner.

Historic Christchurch Property has Sold

Kate Sheppard’s former Christchurch home has a new owner, five months after it went on the market.

The sprawling villa with more than 4000sqm of land in Clyde Rd, Ilam sold. Built in 1888, it was Sheppard’s home for 15 years and was the base for her suffrage campaign.

Kate Sheppard House for Sale - Harcourts Holmwood

The villa passed in at auction in October, when Harcourts Holmwood auctioneer Phil McGoldrick said the owner was unwilling to discuss a sale price of less than $3.5 million. The property was valued at $3.15m.

Harcourts Holmwood Agents, Martin and Laurie Sutton, said the market for a property of that value was small, so the interest was good for the price.

The house is a four-bedroom, three-bathroom home and has a Category One protection order heritage listing.

Burbury earlier said she and her ex-husband “had no idea” of its significance when they bought it.

“It was pretty amazing. Prior to that it had been just our home, but after that it felt like a real privilege to be here,” she said.

The original villa is still visible from the front of the property but it has been extended and modernised inside. A swimming pool, tennis court, stream and artesian well have been added.

Burbury, who turns 70 this year, hired the property out for a time as a venue for weddings and functions. She earlier said she plans to to spend more time at her beach house in Kaiteriteri and in England.

“I’ve truly loved it but it’s now time to pass the baton on.”

Update on the Christchurch real estate market by Jim Davis

As Christchurch rolls into the traditional post Christmas busy period, it is pleasing to see that the recently released January sales statistics still show a continuing strong steady Christchurch marketplace.

The release of the REINZ stats for January indicate that there were 397 recorded residential sales in our City with a recorded median sale price of $440,000.  Anyone who regularly reads this market comment will know how steady our market has been in Christchurch over the last couple of years.  The stated figures for this January when compared to figure for January 2018 of 402, show that my steady average market comments have been spot on.

real estate christchurch

January is never a big month in terms of sales, simply because the sales teams and the market are generally in holiday mode till late in the month. What we have just experienced is very much, another average January in terms of sales data and history. Neither good nor bad and difficult to gauge any early trend from.

Property listings are the life blood of any real estate business and the volume of listings coming into Harcourts across the city continues to track well in comparison to other years. Harcourts continues to be the preferred company across the city with close to every second new property to the market being listed by Harcourts.

christchurch real estate holmwood

There is one aspect of our business that has gone through a big change since the 1st Jan and that is the new legal requirement under Global Anti money laundering legislation. We in the industry are required to conduct “Customer Due Diligence” on everyone who wishes to sell property.  This is part of Global legislation that the New Zealand Government signed up to many years ago and now the Real Estate industry is required to dig a bit deeper into the identity of the individuals owning property before it can be sold.  The process is even more in depth when we have property in owned by overseas owners, in Trusts or any company structures.  In essence we have to get all property ownership back to the person who ultimately owns the property along with a raft of other information.

For some people this can feel a bit intrusive, but unfortunately it is the new law. Why am I telling you all this? Primarily so you can be prepared, but also so you consider carefully who you are selling your property through. With all this new legal legislation it is comforting to know that Harcourts has already spent considerable time, training and educating their consultants.  More importantly they have invested in the services of the acknowledged leaders of systems needed to keep your information secure.

The months of February and March are traditionally the busiest times of the year, there is generally more stock available and more property is sold. There is no company who can offer the results that Harcourts can. With the busiest time of the year now upon us make the most of the opportunity, list with Harcourts and know we have the training, expertise and resources to get you the best result.

We are delighted to welcome Jamin Marshall and his team to the Merivale Office. Jamin is supported by Licensed Sales Consultant, Tim Harris, and Personal Assistant, Johanna Adams.

Property is in Jamin’s blood. Both his father and his grandfather were successful real estate agents and it’s something he’s genuinely passionate about. He blends that passion with highly developed communication skills and an extensive network of contacts.

For Jamin, as for Holmwood, people are always at the core of what he does.

 

We are proud to look back on our sponsorship and community support in Christchurch for 2018 and excited for the year ahead!

Harcourts Holmwood has a positive and long-term commitment to the Christchurch community. This year we have taken another step up! Not only are we contributing to the Christchurch City Mission’s ‘Walk of  Stars’ but we are also as a major sponsor of the Mission’s Christmas Lunch.

The Christchurch City Mission is one of those institutions we all wish wasn’t needed. Alas, the statistics tell a different story. Demand continues to rise, more are living on the fringes of society and we need to give a helping hand this Christmas.

With one family in five finding the expense of Christmas too much of a burden, it is a privilege to be able to support this important event.

We are aware that others might also like to contribute so we have set up a ‘Givealittle’ page. To access this page please click here or simply text “donate” to 206 to make a $3 donation.

Help us, help others this Christmas!


There are lots of different commission structures

The reality is that real estate companies are all different and will charge differently for our services, which is great from the perspective of the vendor, as it gives you huge choice. Price should of course be a consideration when you list, but there are lots of other things that are important too.

After all, if for example a sales consultant who is pitching for your business, is prepared to immediately discount just to ensure they get the listing, should you ask yourself, what else will they be prepared to cut back on when the time comes to try and get a sale on paper? Will it be your price? Or might it perhaps be the amount of time and effort they put in to sell your property.

But let’s take a step back. The good thing about New Zealand is house sellers have options. You can choose to sell your property yourself, choose a low fee company, choose someone who discounts quickly suggesting they don’t believe they are worth their ‘rack rate’, or choose a full fee, full service company or consultant.

What are your options?

You could of course sell your own home and take on the paperwork and legal advice all on your own terms, but this is not a common thing in our market as so often people feel that trusting a network of property experts and legal professionals is the best way to gain them the results that they need.

This brings us to the answer to the original question about why some real estate companies charge more than others.  It comes down to the time, effort and opportunity a good sales consultant working within a large full-service company can bring to the whole sale process.  A good consultant will be working hard with a whole network of potential buyers available from within their company rather than just the one or two they know themselves.

Do you choose a genuine low-fee real estate company?  It may well be the best choice. Ask some hard questions about their buyer network and how they operate.  Ask yourself, ‘will other consultants within their company spend the time and energy introducing buyers to your property when there is a much smaller sale fee to split? It is possible that as a low fee operator they may only be selling their listings to the one or two potential buyers they might know, not to the larger market.

That brings us to full fee operators like Harcourts who some see as more expensive

Harcourts has around 460 consultants working in the Christchurch market currently. Full details of any listing in the Harcourts system is available to all those consultants immediately. More than that the details are also available to approx. 2500 consultants nationwide. Our system is designed to enable cross selling between offices and individuals and as a result approx. 40% of sales we do, are done by a 2nd consultant. To put it plainly your property listing is available to any buyer working with a Harcourts consultant anywhere across the city and potentially across the country.

Quite simply at Harcourts we believe we get our vendors more money for their property by a combination of the sheer volume of consultants who all have buyers (pt. 1), who can then access your property information. This creates competition for your property which can produce excellent results for you, either by auction, multiple offer situations or just simply because of the superior and trained negotiation skills in our people.

Getting the best price

Yes, you may pay more for a Harcourts consultant than you do for some other consultants, but you only get one chance to sell your most valuable asset, so you need to be sure you got the best price not just any price.

While the costs of selling your property will -and should – always be a factor in deciding which real estate company to choose, selling should not be about the commission factor alone. As with any product or service, value is not the same as cost. It should, at least in part, be about the company itself, and its reputation, It should be about the skills and experience of the sales consultant, as well as the buyer network they have at their fingertips but ultimately about getting the best price for your home.

Finally, If you are still unsure trust in all the people who have voted Harcourts the most trusted real estate brand for the 6th year in a row.

There is an old saying in Christchurch – “when you’re selling, sell with Harcourts. When you’re buying, hope your new home is listed with another company”.

Harcourts’ South Island Regional Manager, Jim Davis, comments on the Christchurch real estate market.

As we move into the festive season and the inevitable slow down of Real Estate activity that occurs in late December and over the early January period, it is interesting to read that the market commentators are now caught up with the reality of our Market this year.  The Blazing headlines in the Press property section this week.

“No Aussie-style property slump” this is exactly what we at the coal face have been saying for over a year now.  Christchurch, this strong steady resilient city of ours, has a real estate market that reflects exactly this.  When I run the figures for just the Harcourts offices in our city for the last year and compare it to a year ago the statistics are remarkably similar.  There are a few less consultants running around the city but those that are, have all performed a little bit better over the year.

christchurch real estate

You might recall that in October Canterbury recorded the best sale month for the last 10 years according the REINZ sales statistics. Today REINZ has just released the data that relates to the month of November, and the result is another strong month.

In November there were 620 recorded Residential sales here in Christchurch, the reported Median is $460,000 with an average time on the market of 32 days.  These figures are just slightly back on last month but that is not unexpected when you are following a strong Spring period.  There is no doubt that there is plenty of activity happening in our local market, strong sales are being recorded right up to the Christmas break and open homes are still well attended. However, it is a very balanced situation currently. Buyers have plenty of choice available to them, and from what I am hearing that choice will continue well into next year when the post -Christmas rush starts. This is based on the number of people already talking to our consultants about their plans post- Christmas.  With choice for buyers comes caution and options, hence the reason that property seen as overpriced by the market will be rejected and inevitably will sit until the price expectation of the owner is reviewed.

Auctions  continue to be our preferred marketing option, and in a balanced market such as we have now it is not unexpected that clearance rates “on the day” drop off a little bit.  We still seem to be having around 50% sold under the hammer and the another 20-30% sold subsequently usually to people introduced during the auction program.  This is the great part about Auctions , as a vendor you effectively get two chances.  The first opportunity is with the cash buyers, the second chance is with the rest of the buyers who are waiting and hoping a property doesn’t sell under the hammer.   This method has an advantage for both sellers and buyers, in that the process attracts the ‘cash buyers’ first off and for sellers this means certainty of sale if the price is right. For buyers it means the pool of potential competition is lower initially and they don’t have to worry about getting caught up in the “smoke and mirrors” of a multi-offer scenario.  So, can auction work for all parties and that’s why it is favoured by most people.

christchurch real estate

There is no doubt we will see the traditional Christmas slow down start to take effect in about a weeks’ time, but I have little doubt that there will be a burst of pent up activity on the scene as soon as everyone settles back in the New Year, and I think that is what the media market commentators are now realising. Our market place is a replica of Christchurch itself; strong, steady and resilient.

 

The Reserve Bank says risks to New Zealand’s financial system have eased over the past six months and it is time to reduce restrictions on mortgage lending.

Loan-to-value restrictions (LVRs), set by the Reserve Bank, determine what proportion of new lending can go to people with small deposits.

From January 1, up to 20 per cent of new loans will be allowed to be to owner-occupier borrowers with equity of less than 20 per cent.

At present, only 15 per cent of new lending can be to this group. Before the rules were first introduced in 2013, lending to low-deposit borrowers was about 30 per cent of bank business.

Up to 5 per cent of new lending will be allowed to be to investors with deposits of less than 30 per cent. At present the threshold is 35 per cent.

christchurch real estate market

Reserve Bank governor Adrian Orr said households were still exposed to financial shocks, due to their large mortgage debt burden.

“However, both mortgage credit growth and house price inflation have eased to more sustainable rates, reducing the riskiness of banks’ new housing lending. In response, we are easing our LVR restrictions on banks’ new mortgage loans. If banks’ lending standards are maintained we expect to further ease LVR restrictions over the next few years,” he said.

The rules have been credited with taking the heat out of the Auckland property market, particularly in relation to investor activity.

The Reserve Bank says risks to New Zealand’s financial system have eased over the past six months.

ASB chief economist Nick Tuffley said the move was more than he had predicted.

It would provide more stimulus to the market at a time where it was already buoyed by low interest rates, he said, and had shown signs of a late spring bounce.

“It should reinforce activity.”

Infometrics economist Gareth Kiernan said the relaxation for investors was a surprise. At 30 per cent, that is the same level of deposit required from investors as in 2015, when the rules seen to have little impact on investor activity.

But he said the Reserve Bank might assume that it could safely make the downward adjustment now without sparking the market back into life, because the “speculative heat” had been taken out over recent years.

The rules were first introduced in 2013 and have been tweaked many times since.

real estate market christchurch

Real Estate Institute (REINZ) chief executive Bindi Norwell welcomed the change.

“The fact that banks have the opportunity to increase the percentage of new lending from 15 per cent to 20 per cent of their total loan book means there is a chance for more first-time buyers to have access to lending that they haven’t previously had.

“We continually hear feedback from real estate agents around the country that with median prices rising to record levels in the regions that first-time buyers are just finding it too difficult save that deposit to purchase their first home and to get into the property market. Any window of opportunity for young couples to get a foot on the property market is to be welcomed,” she said.

“We also welcome the news that LVRs for investors have been relaxed from 35 per cent to 30 per cent as with the raft of legislation currently facing investors, many have announced their intention to exit the market. Today’s announcement may go some way to supporting the continued supply of rental properties across New Zealand.”

Kelvin Davidson, senior research analyst at CoreLogic, said the move could kick-start sales volumes, but it was not guaranteed.

“Despite the Reserve Bank’s loosening of LVR limits, an increase in lending is not a clear-cut outcome. After all, lenders may choose to continue on their cautious path, especially since today’s Financial Stability Report also highlighted the RBNZ’s view that ‘higher capital requirements are necessary, so that the banking system can be sufficiently resilient whilst remaining efficient’. In other words, a requirement in future for the banks to hold higher capital buffers would tend to dampen lending flows.”

BETTER MORTGAGE RATES?

At the moment, banks offer their “special” home loan interest rates to people with equity of 20 per cent and more. They have dipped below 4 per cent in recent weeks.

Buyers without 20 per cent not only miss out on the specials but also pay low-equity margins and premiums on top of standard rates.

Broker Bruce Patten said this month that someone with 20 per cent equity could get a rate around 4 per cent but a borrower with a 10 per cent deposit could pay about 5.5 per cent.

Banking expert Claire Matthews, from Massey University, said it was possible that banks could start to extend their specials to people with less equity.

The competition happening in the home loan market indicated they wanted to lend, she said.

“They’ll be able to do more lending to those people and may possibly be willing to encourage them more than they were in the past. On the other hand the reality is people with smaller deposits are more risky and it makes sense that they should be charged a higher rate. It depends on how willing they are to lend. If one moves then they others probably will because they can’t afford not to.”