The Hawkes Bay residential market continues to see strong price increases relative to a year ago with still reasonably good sale volumes. A lack of listings is a contributing factor resulting in prices being held up and sales limited by the number of available properties.
The Hawkes Bay average median sale price over the three month period for July, August and September 2017 was up 24% at $399,000 this year compared to $320,500 in 2016. Sale volumes were down from 251 for 2016 to 205 this year. The median sale price for September was down at $392,000 from $405,000 in August. Sale volumes were also down on a month to month basis with 191 in September and 220 in August.
The median number of days to sell increased by 1 days to 30 days in September compared to the month of August at 29 days which compares positively to the 10 year average of 48 days.
For Napier, the median sale price over the same period increased 19% from $357,500 in 2016 to $427,000 in 2017 with sale volumes per month are down from a year ago with 104 in 2016 to 90 per month in 2017. The median sale price for September was down slightly at $392,000 from August at $405,000. Sales were well down in September at 81 from 106 in August.
Hastings’ results over that same period showed median sale price levels up by 20% from $325,900 in 2016 to $390,000 in 2017 with sale volumes decreasing from 99 per month in 2016 to 91 per month in 2017. The median sale price for September was $375,000 compared to $405,000 in August. Sales were down with 89 in September from 87 in August.
Properties continue to sell quickly with most being sold with an open ended pricing mechanism such as by negotiation, auction or tender. Demand is still being fuelled by low interest rates and investment from out of town buyers, some local population growth and a sound national and local economy. Current activity is spread across all price bands.
There is still a shortage of listings and some uncertainty after the general election. Feedback from Real Estate Agents suggests the supply shortfall may be easing with the popular spring period looming. Our expectation is that prices will stay firm but the rate of growth will probably ease but until supply balances with demand, we expect pressure will remain on median sale price levels.
Our expectation is that prices will stay firm but the rate of growth will probably ease but until supply balances with demand, we expect pressure will remain on median sale price levels.
Have a great month!