The Hawkes Bay residential market remains active with median price levels showing solid increases however with a slight decrease in sale numbers throughout the region overall relative to a year ago, this likely due to a continual shortage of residential properties on the market.
The Hawkes Bay average median sale price over the three month period for January, February and March 2017 was up 16% at $370,500 this year compared to $319,167 in 2016. Sale volumes were similar with 253 for 2016 and 246 this year. The median sale price for March increased to $395,500 from $350,000 in February. Sale volumes were up on a month to month basis with 317 in March and 241 in February. The median number of days to sell sits at 29 for the month of March which compares positively to the 10 year average of 45 days.
For Napier, the median sale price over the same period increased 20% from $340,000 in 2016 to $406,500 in 2017 however with sale volumes slightly down from 111 per month in 2016 to 104 per month in 2017. The median sale price for March was up to $420,000 from $399,500 in February. Sales were up significantly with there being 137 in March and 89 in February.
Hastings’ results over that same period showed median sale price levels up by 13% from $321,172 in 2016 to $363,292 in 2017 with sale volumes decreasing by 8.8% from 104 per month in 2016 to 92 per month in 2017. The median sale price for March was up to $395,375 compared to $349,500 in February. Sales increased significantly with 114 in March from 98 in February.
Prices continue to strengthen across the region in a market that appears not to have been particularly troubled by increased investor LVRs which require a 40% deposit from 1 September 2016.
Current feedback from Real Estate Agents suggests that there a continuing shortage of listings resulting in multiple offers on properties. This lack of listings is likely impacting sale volumes with a reported high number of interested sellers deterred the limited choice for purchasing properties. More recently activity in the higher end of the market has been strong.
Properties have been and are selling quickly with most being sold with an open ended pricing mechanism such as by negotiation, auction or tender. The current strong demand first appeared in the later part of 2015 and to date appears to be continuing. Demand appears to be across the board and is still being fuelled by lower interest rates, KiwiSaver incentives for first home buyers with some investment from Auckland buyers looking to capitalise on capital growth in their market, and a sound NZ economy.
Our expectation is that prices will stay firm but the rate of growth will probably ease however while there remains a shortage of listings, we expect the current solid market to continue.
Registered Valuer | BBS (VPM)