Tēnā koutou katoa. My family and I spent time back home at Huramua over the summer break and part of our time was spent at the new playground which was very impressive. Believe me having three kids under 6, we have managed to visit our fair share of playgrounds throughout the North Island, and in our opinion, Wairoa has one of the best if not the best. I see stage two development is about to get underway which would just put the icing on the cake. Please encourage our tamariki to look after this precious taonga.
In terms of property, the Hawkes Bay and Gisborne residential markets continue to see strong price increases relative to a year ago while sale volumes over the same period have eased. A lack of listings is a contributing factor resulting in prices being held up and sales limited by the number of available properties in both regions.
For Napier, the median sale price over the same period increased 29% from $378,000 in 2016/2017 to $489,333 in 2017/2018 with the three-month median sale volume down from a year ago with 107 in 2016/2017 to 97 in 2017/2018. The median sale price for January was down at $495,000 from December at $508,000. Sale volumes decreased to 79 in January from 93 in December.
Hastings’ results over that same period showed median sale price levels up by 20% from $339,167 in 2016/2017 to $406,500 in 2017/2018 with the three-month median sale volume slightly down at 92 in 2016 to 87 in 2017/2018. The median sale price for January was $423,250 up from $390,000 in December. Sale volumes were similar with 77 in January from 79 December.
In comparison to the same time, last year Gisborne median price levels were up by 14% and sale volumes down significantly by 20%.
The Wairoa residential market showed similar trends to above major centres with sale volumes slightly down and sale prices up.
As previously reported, 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, access to Kiwisaver, 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.
Our expectation is that the rate of growth will probably ease however prices will stay firm at least in the short-term, until supply balances with demand.
Have a great month!
Lucas Paku - Registered Valuer
*REINZ Hawkes Bay/Gisborne Region Analysis for January 2018, REINZ