Although the winter chill has impacted real estate volumes across the country in June, it’s done very little to halt price rises in most regions including Hawke’s Bay.
Hawke’s Bay is one of three regions to see record median prices during June, with a rise of 15.3 per cent to $430,000.
This month the Gisborne/Hawke’s Bay region has the highest annual growth rate of 14 per cent, followed by Otago and Southland.
The median number of days to sell a property nationally increased by two days from 36 days in June 2017 to 38 days in June 2018.
The number of properties available for sale nationally decreased 3.8 per cent from 23,507 to 22,605, a decrease of 902 properties compared to 12 months ago.
The Hawke’s Bay region continues to remain scarce with only eight weeks’ inventory.
Hawkes Bay REINZ Ambassador Elanor MacDonald says the rise in median house prices is positive for the region.
“The 15.3 per cent rise represents Hawke’s Bay as a whole. When you separate Napier and Hastings you come out with a slightly different figure and over the past two months we’ve seen a slight decline in the annual year-to-date growth.
“The increase of house prices have slowed, however we’re not seeing a decrease in house prices. We still have strong buyer interest across every price bracket.
“What’s been most interesting is the median prices are very similar to the previous month and the month before that – and very similar in the same month last year.”
“The Kiwi love affair with property doesn’t seem to be fading,” MacDonald laughed.
Over the past 12 months the median house price peaked at 16 per cent for Napier and has slightly reduced, but MacDonald says that doesn’t mean growth isn’t present.
“The growth has come back a wee bit. The main problem we have is shortage of supply. Properties that are listed one month are getting sold that month and the properties that are still on the market are probably the same ones that were on the market three months ago.”
Property Brokers Regional Director for Hawkes Bay Paul Whitaker says median house price figures are positive, but he also expects them to plateau.
“They may slow, but there’s still high demand and low stock levels will increase in the long term,” he says.
“This is historical through the winter months. Listing levels reduce due to weather conditions and houses not being shown off at their best.
“We recommend that if stock levels are low there’s a huge opportunity to sell your house at a premium price.”
MacDonald also agreed, saying that winter is a perfect time to sell.
“There’s a misconception that selling your home in winter is a bad idea. It’s actually a very good idea. The less competition there is the better.
“Unless you have a problem with your house winter’s a good time. You can warm it up and it comes across as an attractive proposition to people on a cold day.”