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 March, April and May 2017 was up 23% at $386,500 this year compared to $315,250 in 2016. Sale volumes were slightly down with 295 for 2016 and 249 this year. The median sale price for May was slightly down at $375,000 from $397,500 in April. Sale volumes were up on a month to month basis with 209 in April and 242 in May. The median number of days to sell decreased by 2 days to 30 days in April compared to the month of April to 30 days which compares positively to the 10 year average of 50 days.
For Napier, the median sale price over the same period increased 15% from $351,667 in 2016 to $403,333 in 2017 with sale volumes down from 128 per month in 2016 to 116 per month in 2017. The median sale price for May was stable at $395,000 the same as April. Sales were up significantly with there being 120 in May and 90 in April.
Hastings’ results over that same period showed median sale price levels up by 20% from $324,250 in 2016 to $390,667 in 2017 with sale volumes increasing by 2% from 107 per month in 2016 to 110 per month in 2017. The median sale price for May was $374,000 compared to $398000 in April. Sales were similar with 98 in May from 103 in April.
In terms of sale volumes the month on month comparisons above reflect the transition to the traditionally slower winter months with Napier bucking the trend.
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. Activity in the higher end of the market continues to be 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. 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, especially over the winter months, however while there remains a shortage of listings, we expect the current solid market to continue.