NORTHLAND PROPERTY MARKET UPDATE ON RESULTS FOR DECEMBER 2019
In a SNAPSHOT WHANGAREI: Volume is Up, median price was Up and it is still taking longer to sell compared to last year especially for properties above $700,000.
December results for Northland continue to show good results this time in both the increase in median price and the increase in volume of sales on prior year. Buyer demand remains strong especially in Whangarei where a new record median price was set at $580k, up a +20.8% on the prior year.
NATIONAL OVERVIEW: (by REINZ)
New Zealand rounded off the decade with the highest number of residential properties sold for the month of December in three years and price rises in 15 of 16 regions, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
NATIONAL MARKET KEY INDICATORS:
NORTHLAND OVERVIEW: (by REINZ)
The Northland market remained confident with prices up a strong 12.3% year-on-year to a record high of $539,000 and a record median for the Whangarei District of $580,000. There has been an uplift in the number of out of town enquiries and we are now seeing a 50/50 split in some areas between local and out of town buyers looking for permanent homes and rental investments. However, there has been the typical drop off in the number of people attending open homes due to the holiday period.
First home buyers are now starting to struggle to meet the criteria to receive the Kiwi Saver Home Start grant because of the increase in house prices being above the regional house price cap. Sales in the region have been strong with a 17.3% increase compared to the same time last year. We expect sales to remain steady and vendor price expectations will continue to be strong. We should also start to see more listings come onto the market through to late summer, whilst demand for properties across all price ranges will persist.” Bindi Norwell REINZ CEO
SUMMARY OVERVIEW AND DETAILED STATISTICS:
The price movement we are seeing for December sees our trend of upwards movement continuing for Whangarei with a new record median price at $580,000. At Harcourts Whangarei, we had another excellent, some might say frantic month continuing our record-breaking year for both the volume and selling prices of properties. With such high-volume growth month on month we wait with great expectation as to what 2020 will bring as we continue to see a strong interest in the Whangarei property market with people moving to our lovely city.
So yes, there is still a lot of buyer demand with not enough stock on the market to meet what buyers are looking for. This may well change as we move into 2020 with signs that more people are thinking of selling.
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 January 2020 the trends above seem to be continuing with a typical increase in the number of new listings coming to market.
For those looking to sell, this is definitely a good time to get your property on the market as demand for good properties is high.
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