Investors are Back and Auctions are Humming
It’s official – investors and first-home buyers are well and truly back in the market.
In the space of less than two weeks, auctions in our six Harcourts Highlands group offices across Otago have been buzzing with cash buyers ready and willing to act to secure their first home, investment property or simply escape the rental market.
And it looks like this upward trend is here to stay.
A Wanaka property auction in the last week of October saw three properties go to happy new owners – one a local investor, another a renter looking for a permanent home and the third a Southland farmer who’s now found his dream holiday home. A new residential subdivision record was also set.
A Cromwell auction saw two Auckland investors competing for the same property in a spirited battle, while in Dunedin a Northland buyer outbid another cash bidder on auction day.
All our offices are reporting plenty of cash-at-the-ready buyers actively looking to secure a property as interest rates go down and prices go up. Harcourts agents have the widest possible marketing resources at their fingertips, so while local buyers are important, they’re more than happy to team up with other agents to match the right property to the right buyer, wherever they are in the country (or overseas).
If speed is of the essence for vendors who have already bought elsewhere, then a snappy auction marketing process is proving a winner for many, and Harcourts’ skilled auctioneers are proving their worth in working the bidding and delivering the best possible result to sellers on auction day.
Wanaka properties at 51 Obelisk Street and 26 Meadowstone Drive were selling for different reasons – agent Chris Wright marketing the Meadowstone property over four weeks on behalf of an owner moving into a retirement village and Obelisk Street with a highly-targeted short, sharp campaign for sellers who recognised their home was in a competitive market and wanted to move on under a tight timeframe.
“They couldn’t have been more different,” says Chris. “With Meadowstone I was interviewed by a ‘committee’ of the vendor and two trusted senior community stalwarts and was chosen for their ongoing trust in me and my integrity. It was a very dynamic campaign where we adjusted our marketing following initial feedback and reached potential buyers in the first home, investor and holiday home markets.
“The vendor was more than happy that it sold for nearly $1million more than she had bought it for 22 years ago and she could take her next steps in life.”
Eye-catching photography and marketing came to the fore with the Obelisk Street Northlake property leading to 47 parties through the property in three weeks and three registered bidders on auction day, selling successfully on the floor.
Over in Lake Hawea, a new residential record sale price was set for 17 Dingle Street in Sentinel Park with two bidders – both renting locally – going head-to-head at auction for the 4-bed home. “There was very competitive bidding from the floor,” says agent and auctioneer Gavin Vize.
Harcourts Wanaka manager Grant Parker says records are being set at auction with competitive bidding in the auction room. With a lot of available properties either on, or coming to market, buyers appreciate the auction process because it’s transparent, and sellers are getting action on unconditional sales in a short period of time.
A Cromwell home brought to market by Cara Shanks in October had over 6,000 views online and 28 people through open homes over the three-week campaign. The two cash unconditional bidders who squared up on auction day for 21 Antimony Crescent were both Auckland investors. Sold under the hammer comfortably above the owner’s price expectations, it was smiles all round.
In Dunedin, there were 5,200 online views and 51 buyers through open homes during a three-week campaign for 59 Aotea St. Marketed by Julie Reger, two cash bidders fought it out on auction day, one local and one from Kaitaia. Speed was of the essence for sellers and buyers and this auction delivered, as the vendors had already bought their next Dunedin home and the Kaitaia buyers had sold in Northland and were on a mission to move into their new Dunedin property.
“The auction delivered a result above the owners reserve instructions and we organised a quick two-week settlement, so everyone was a winner here,” says Julie. “We also had three conditional buyers poised to make an offer but they simply didn’t get the chance.”
