Realtors cautiously optimistic about Bay market
Golden Bay’s real estate branches are remaining cautiously optimistic in the face of the global recession and a challenging market.
Nick Hodgkinson, manager of First National Golden Bay and Belinda Barnes, manager of Harcourts Golden Bay, said that while buyers were being understandably cautious, enquiries and offers were still happening.
“There have been 75 residential sales in the last eight months,” said Nick. “The market is slower than it was two years ago, for sure, but there are some months where we sell more than we did in the same month last year. It’s like there’s a weak link in the chain—people are worried about their jobs so they’re being cautious. That means first-home buyers aren’t taking that leap out of renting and other people are hesitating to upsize or shift to another part of the Bay. ”
“We’ve been busy in the last couple of weeks,” said Belinda. “Buyers are making offers, admittedly conditional offers, but we’re encouraging our vendors to think seriously about anything that’s a serious offer.”
Both experts agree that prices have dropped and that the urgency to buy has gone from the market. “It’s a buyer’s market and vendors need to recognise that when they’re pricing their properties,” said Belinda. “But interest rates are down, so term investments aren’t returning as much and mortgages are easier to service, so it’s a good time to buy. A lot of it is about perception. The people I’ve learned from have pointed out that property booms may be short-lived but downturns don’t last forever either, and now could be a very good time to buy.”
Nick agreed. “Buyers are taking their time but there are some great buys around,” he said. “People with cash can get into the market very well. I think borrowers taking out new mortgages should fix their interest rates for as long as they can because they will go up in time. The trouble is that everyone seems to be waiting for some kind of sign that we’ve reached the bottom of the cycle.”
Nick believes the whole Golden Bay economy would benefit from the existence of more jobs.
“Our council should be doing everything it can to attract entrepreneurs here,” he said. “They could offer assistance with resource consents, rate rebates, or even development loans for new businesses. We need people who will take a risk and create real jobs that add value. The salmon farms and spit trip operators are good examples. They employ people. Golden Bay has certainly got room for more families and people in employment. We all benefit from them.”
New industries are one thing, but both Belinda and Nick agreed on the importance of dairying to the local economy. “The record payout shielded Golden Bay from the downturn for a while,” said Nick. “The world always needs food, so as long as the farmers keep getting a reasonable payout things will be alright here. The thing is that Golden Bay is such a beautiful place to come and live in that people of all kinds will always want to come here. That’s why we’ve got such great diversity in our community. It’s a strength.”
In these less certain times, when buyers are cautious, Nick said that some land development projects get shelved.
“We seem to have enough building sections in the short term,” said Nick, “But developments that are aimed at the tourist market could be encouraged.”
Holiday home sales have slowed because they are luxury items, Nick said, and they are the part of the market that is tagged to the broader economy.
The longer-term future of the Bay’s economy remains bright, said Nick and Belinda.
“It’s a cyclical thing,” said Nick. “Low interest rates will encourage activity and that activity will encourage more activity. Then demand will grow again.”
“I’ve got confidence in the Bay’s economy because I’ve got confidence in the Bay full stop,” said Belinda. “It’s a great place to live and I just love it.”
Neil Wilson
