Mid 2018 – snow on the ranges, the shortest day a month behind us and the property market has not noticed any seasonal change at all. Currently we are limited only by a shortage in property listings. Most of us know the basic principle of supply and demand – as less property and land is available (supply) and whilst buyer numbers (demand) remains strong, prices will continue to rise. The relationship between these two factors determines the price of a commodity – a relationship which is the driving force in a free market. The good thing for most buyers and sellers is that this market shows no real sign of slowing down. Here in Hawke’s Bay we are fortunate to have a relatively small population, we have capacity to grow and we now have excellent roading infrastructure north and south. You can see Tauranga’s growing pains, Queenstown is bursting at the seams and, well, we all know about Auckland.
On a recent visit to the Bay, KiwiBank regional manager Garth Duncan and KiwiBank chief economist Jarrod Kerr said they expect Hawke’s Bay’s regional economy to expand over the next year, with a new report from KiwiBank granting our region an “economic score” of seven out of ten. “Running at a decent clip,” was how the report describes our economy, saying we are still playing catch-up to Auckland’s rapid growth of a few years ago. The economic forecast report into the performance of New Zealand’s provinces said the national economy was expected to “grow above trend” next year, while the economies of regional New Zealand, including Hawke’s Bay – listed as a “hot” area along with Gisborne, Rotorua and Manawatu-Whanganui – were “developing rather well.” And property investors are achieving higher yields here than in other parts of the country.
And more good news for Hawke’s Bay on the back of Housing New Zealand’s announcement that they are on target with replenishing state housing stock in 15 of New Zealand’s regions. Acting Prime Minister Winston Peters says, “Hawke’s Bay is doing seriously well out of this, they’re getting a lot more than I thought they would do against the rest of the nation, but it shouldn’t be a contest. We’ve got to ensure that the housing need is met in the countryside as well as in the big cities.”
Andrew McKenzie, Chief Executive of Housing NZ, says they will be building 49 houses, nine of which have already been completed. “That’s part of a programme that will see us [add] about 200 houses to our stock here in the Bay. We’re also looking at a refurbishment programme for the 3000 homes we’ve [already] got,” he says. Hawke’s Bay will receive more than double the number of new homes compared to other regions.
Our sales consultants host open homes each weekend and they tell us there are a lot of buyers still out there having either just entered the market or recently missed out on properties. So, if you are thinking of selling your home, don’t hesitate to give one of our team a call.
And don’t forget to drop your colouring competition entries in to your local Tremains office by this Monday, 23rd July.
Have a great week.