Firstly, I’d like to make a couple of acknowledgements. My family and I went along to Te Matatini to tautoko Te Rerenga Kōtuku and were so proud of their performance. You represented Wairoa with mana and pride; it made us feel even more prouder to be from this special place. Secondly, to Kiri Gilbert, your mahi with the Te Wairoa waiata has been outstanding. To carry this out with on your own accord without your main motivator being financial gain is something we can all take a lesson from. Our community will be forever better off for the creation of this waiata.
In terms of property, the Hawkes Bay residential market remains active with median price levels showing solid increases however a low supply of listed properties is impacting upon sale numbers with significant decreases recorded throughout the region overall relative to a year ago.
The Hawkes Bay average median sale price over the three-month period for December 2016, January 2017 and February 2017 was up 8% on last year’s corresponding period. Sale volumes fell by 11%.
For Napier, the median sale price over the same period increased 19% from $340,000 in 2015/2016 to $404,000 in 2016/2017 however with sale volumes down from 107 per month to 86 per month in 2016/2017. The significant median price increase likely reflects less activity in the lower price bracket rather than any major price movement.
Hastings’ results over that same period showed median sale price levels up by 8% from $319,500 in 2015/2016 to $346,500 in 2016/2017 with sale volumes decreasing by 15% from 104 per month to 89 per month in 2016/2017. Again, the increase in median price levels is likely due to less activity in the lower price bracket.
Over the same period above the Wairoa residential market has remained active illustrated by a 5% increase in average sale price levels and 19% increase in sale volumes. There is now a steady demand from a range of purchasers.
Properties continue to sell quickly with the median number of days to sell at 36 which compares positively to the 10-year average of 52 days. Open ended pricing mechanisms such as by negotiation, auction or tender remain popular. Demand appears to be across the board and is still being fuelled by lower interest rates, KiwiSaver incentives for first home buyers, out of town investors and a sound NZ economy. The 40% LVR restriction on investors seems to be having minimal impact within our market.
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
Have a great month! Kia ora.
Registered Valuer | BBS (VPM)