NORTHLAND PROPERTY MARKET UPDATE ON RESULTS FOR OCTOBER 2019
In a SNAPSHOT WHANGAREI: Volume was up, median price was up but it is still taking longer to sell compared to last year.
October results for Northland overall are showing a continuation of the trend we have mostly seen all year where volumes are down but prices are up and buyer demand especially in Whangarei is very strong with not enough properties on the market to satisfy this demand, this is particularly so in the $500k and below price ranges.
NATIONAL OVERVIEW: (by REINZ)
Median house prices across New Zealand increased by 8.2% in October to a new record high of $607,500, up from $561,500 in October 2018 – the first time the median house price for the country has crept over the $600,000 mark, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
NATIONAL MARKET KEY INDICATORS:
NORTHLAND OVERVIEW: (by REINZ)
“In October, Northland saw a record median price of $525,000 up 9.4% from $480,000 in October 2018. The continued lack of stock in the region has likely caused the increase in median price as well as the decrease in sales, which were down -9.4% year-on-year. Additionally, new listings were down -15.2% compared to the same time last year, with only 462 new to the market. Days to sell increased by 17 days from 45 in October 2018 to 62 in October 2019. Demand for mid-range priced property remains strong with an increase in first home buyers in the market.
There has also been renewed interest from investors looking for multi-unit properties. In Kerikeri, there are few properties under $500,000 and if one does come onto the market it usually sells quickly. Local buyers are keeping a close eye on what is happening in the Auckland market, which is boosting confidence for buyers in the Northland market. Over the latter part of spring and start of summer we should hopefully see more listings come onto the market and demand for mid-range properties will remain strong.” Bindi Norwell REINZ CEO
SUMMARY OVERVIEW AND DETAILED STATISTICS:
The price movement we are seeing for October sees our trend of upwards movement continuing especially for Whangarei and this is despite properties in the higher bracket of $700k plus taking longer to sell. At Harcourts Whangarei, we had another excellent month with some new records being set for both the volume and selling prices of properties. So our trend where our volume of sales are returning to a more normal historical level of sales continues with prices continuing to stay up on prior year with properties typically selling above current CV’s.
There is still a lot of buyer demand with not enough stock on the market to meet what buyers are looking for. We are still seeing buyers coming from further afield esp. Auckland where there are 3 clear types of buyers looking. We have younger buyers looking to get on the property ladder, we have families looking for a larger family home that they can’t afford in Auckland and a change in lifestyle, we also have the older buyers looking to downsize and put money in the bank, this group are largely retirees looking to use cash released from a more expensive property in Auckland to travel and enjoy their retirement years in the winterless North.
As we write this update now in November we can also say that we are continuing to see an increase in the number of new listings coming to market with an even stronger demand from buyers keen to buy.
For those looking to sell, this is a good time to get your property on the market as demand for good properties is high.
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