A Wellington property with harbor views advertised for $425,000 below its listing value estimate, a nearby Miramar property for $260,000 below, a four-bedroom house in the Auckland suburb of Mt Roskill for $285,000 below – these are just some of the deals appearing in the most expensive markets.
Investor Matthew Ryan says he faced a lot of heat in December when he became one of the first big market players to say the market had changed and prices could drop 20%.
He says it has now been vindicated as more and more properties are listed below their previously estimated prices and online markets are reporting price cuts on up to a quarter of listings.
Below is a list of properties offering deals seemingly lower than the prices they might have demanded a year ago.
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Two of the listed properties are on the market with Professionals Wellington.
Professional seller Chris Day has a rule for sellers when choosing a starting price today: “Would you think about it for two seconds before saying no?”
If customers did, that was probably a good place to start, he said.
The first property on the list is an 80 square meter bungalow in Karori, Wellington, with two bedrooms, one bathroom, asking for offers in excess of $795,000.
The home may be close to public transit, schools, and shopping, but it’s listed at a steep discount from the Quote Values (QV) estimate of $910,000.
Day says there are plenty of deals for buyers at the moment, to the point that they are spoiled for choice and are often happy to bid low.
The second property to make the list is a four-bedroom house in Miramar, Wellington, with offers above $950,000.
Despite a separate laundry room and large dining room and kitchen, the property is well below its QV estimate of $1.21 million.
There are still larger reductions in capital. Currently advertised on Trade Me is a three bedroom Melrose property on Dunedin Terrace for inquiries above $695,000, $425,000 below QV estimate.
QV estimates are influenced by appraisals made for council pricing purposes, as well as recent sales.
In Wellington, the most recent rating assessments were completed on September 1 last year, around the time the market peaked.
In Auckland, ratings assessments were last taken in early June.
There are plenty of homes on the market now for well below their QV estimate.
An example is this four-bedroom cedar and plaster house on Mt Albert Rd in Mt Roskill, Auckland on the market for $865,000, $285,000 less than the QV estimate of $1.15 million.
Further afield, this chalet in Laingholm is on the market for $829,000, $51,000 below QV.
Glenn Carpenter owns a Ray White franchise in Auckland and said his team has been advising sellers to readjust their expectations for months.
While customers resisted the prices reached last year, Carpenter used only one word to describe the open houses: “tumbleweeds”.
“There’s just no activity, so you can’t really measure them at all,” he said.
“There are more and more affordable properties on the market, it’s not that the properties are different, it’s that sellers are realizing that what we were achieving in the middle to late last year n is not there.”
Carpenter said there was some dispute over whether prices had fallen since the peak, but he estimated 10%.
He said no one he spoke to expected the market to rally, with most expecting continued declines or a leveling.