A villa in a trendy Auckland suburb sold under the hammer this week for $2.67 million - more than $500,000 above its CV.
And while the sale of 19 Rose Road, in Grey Lynn, isn't exactly a surprise, given its stylish presentation, modern look and its proximity to the high-end shops and bars of Ponsonby Road, what is notable is that buyers are still willing to push themselves for the "right home" despite economist predictions of a market turndown.
Ray White agent Tim Hawes, who brought the home to market on June 6 with colleague Mark Punty, says the Auckland family who bought the home were "over the moon".
About 100 people turned to the on-site auction on Sunday, with six bidders fighting it out to secure the 138 sqm home, which sits on a 429sqm section.
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Hawes says house-hunters aren't panic-buying right now, but believes the reason 19 Rose Road worked so well is that it appealed to a "wide range of people and they were all prepare to fight for it".
OneRoof data shows the house was last sold in 2014 for $1.46 million, so on paper the house delivered the vendors a cool $1.2 million profit.
19 Rose Road was stylishly presented and attracted a lot of buyer interest. Photo / Supplied
Hawes had told OneRoof before the auction that the home was attracting a lot of interest from professional couples.
"It's a fantastic opportunity to get into a street that is in a brilliant central suburb and while the house is easily liveable as it is, there is plenty of scope for the future," he said, adding that: "It is very hard to overcapitalise on a house like this."
The sale comes as REINZ released its latest market confidence report, measuring sales activity in May.
The REINZ report illustrates the bounce back in the market following the plunge in activity during alert level four and three. Sales volumes nationwide hit 1372 a week towards the end of May - 300 shy of typical May sales volumes - while median days to sell was more than 50 percent up on what REINZ would have expected pre-lockdown.
Median price, according to the report, showed "the signs of volatility that we would expect following a major global crisis, with the market trying to find its so-called ‘new normal’. Median prices started the month at $665,500, then fluctuated throughout the month, finishing at $629,500."
REINZ CEO Bindi Norwell says the median sales price to valuation ratio for New Zealand picked up in May. Photo / Supplied
REINZ said the median sales price to valuation ratio for New Zealand "showed signs of improvement during May, picking up from 1.07 at the end of April, moving to 1.10 to the beginning of May and reaching 1.13 for two weeks in the middle of the month. The final week of May saw a slight dip down to 1.11."
REINZ CEO Bindi Norwell says: "Overall, the metric is starting to show signs of improvement which will be good news for those who are selling, but less welcome news for first time buyers, investors and those who were hoping for a ‘post-Covid bargain’."
"The issues on the supply side will be pushing this figure up, but hopefully this will give potential vendors the confidence they need to list, thereby adding to the supply pool and reducing the shortage of listings."
Interestingly, Auckland’s sales price to valuation ratio remained relatively flat throughout May starting at 1.02, with a slight uplift to finish the month at 1.05.
This underscores the point that not every property on the market in Auckland is fetching above-CV prices, and that sales such as 19 Rose Road show that buyers have the cash but only for the right property.
