Retirement village operators

The housing market looks like it ended the peak summer selling season with new listings and average asking prices in March both down compared to February and a huge overhang of unsold stock as we head towards the quieter months of winter, according to the latest figures from property website Realestate.co.nz

https://www.interest.co.nz/property/...looking-buyers

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Originally Posted by bull....

The housing market looks like it ended the peak summer selling season with new listings and average asking prices in March both down compared to February and a huge overhang of unsold stock as we head towards the quieter months of winter, according to the latest figures from property website Realestate.co.nz

https://www.interest.co.nz/property/...looking-buyers

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You could look at the number of new listings (which are sharply up from March 2023) as a positive indicator for the RV sector, that folk intent on entering a village are finally now listing their existing property so as to ultimately relocate into such a facility.

Similarly the article records that price expectations are adjusting lower, and we know downside adjustments are psycologically difficult and have a greater lag time in the market than upside movements. More sales will follow once vendors are more comfortable with meeting the current market.

Of course listings made with that underlying purpose will always be only a minor proportion of the total, but most RV operators are presently offering incentives to take up an ORA to better drive occupation decisions. Hence I don't put a negative spin for RV investors on the statistics reported above.

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Originally Posted by ronaldson

You could look at the number of new listings (which are sharply up from March 2023) as a positive indicator for the RV sector, that folk intent on entering a village are finally now listing their existing property so as to ultimately relocate into such a facility.

Similarly the article records that price expectations are adjusting lower, and we know downside adjustments are psycologically difficult and have a greater lag time in the market than upside movements. More sales will follow once vendors are more comfortable with meeting the current market.

Of course listings made with that underlying purpose will always be only a minor proportion of the total, but most RV operators are presently offering incentives to take up an ORA to better drive occupation decisions. Hence I don't put a negative spin for RV investors on the statistics reported above.

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lower prices mean new unit's would have to be priced lower and re-sales as well surely unless you believe the people entering these units dont see price as a consideration, but then that would imply rv stocks are recession proof which stock prices dont seem to imply

anyway more headlines today compounding the negativity

Property listings hit near-decade high

https://www.newshub.co.nz/home/money...cade-high.html

Article today in "Business Desk" that tells it like it is for the aged care sector and highlights the ever declining number of basic beds given the underfunding.

References the policy decisionmaking of OCA and ARV to divest facilities that either exclusively comprise or are overweight in the care bed component as a canary for how it will be in future and the demographic increase in the 85+ age group coming as the boomer generation approach that age and need such care and the lack of any plan to address this. At a minimum 13000 new beds required and none being built and existing facilities closing!

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Originally Posted by ronaldson

Article today in "Business Desk" that tells it like it is for the aged care sector and highlights the ever declining number of basic beds given the underfunding.

References the policy decisionmaking of OCA and ARV to divest facilities that either exclusively comprise or are overweight in the care bed component as a canary for how it will be in future and the demographic increase in the 85+ age group coming as the boomer generation approach that age and need such care and the lack of any plan to address this. At a minimum 13000 new beds required and none being built and existing facilities closing!

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Oldies will need to sell their over-priced houses and see their capital dwindle more quickly to get a premium bed when the basic beds have gone. What will happen to the poor oldies without their own homes? The knacker’s yard?

Inter-generational households likely to become more commonplace in NZ. Not a big part of majority of cultures here but very common in pacific and asian groups.