NORTHLAND PROPERTY MARKET UPDATE ON RESULTS FOR AUGUST 2020
In a SNAPSHOT : Volume is UP on the prior year, median price is UP, and properties are selling quickly especially in the $600k and below category with the overall days to sell sitting at 57 days.
The month of AUGUST we have seen our property market come under continued pressure from buyers where multi-offers are now almost the norm as buyers scramble to buy good properties as soon as they come to market. All properties on the market under $600k are in a sellers market with low stock and lots of buyers both local and from Auckland and beyond. But now even properties especially good ones up to $800k are selling faster with increased demand coming both locally by buyers trading up and returning Kiwis. The number of Kiwis returning to NZ has now increased to approx. 1,000 per week. Many of these are looking to buy away from our cities and in areas like Northland. We are seeing strong demand especially on our lifestyle properties where buyers are choosing to buy property with land.
NATIONAL OVERVIEW: (by REINZ)
Median house prices across New Zealand increased by 16.4% in August to $675,000, up from $580,000 in August 2019 and up from $659,000 in July (a 2.4% lift) and every region in the country saw an annual increase in median house prices, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
NATIONAL MARKET KEY INDICATORS:
NORTHLAND OVERVIEW: (by REINZ)
“In August, the Northland region achieved a new record median price of $590,000. Additionally, Whangarei District also achieved a record price of $610,000. New listings increased 12.9% and sales volumes (220) were up 23.6% year-on-year, the highest sales count for the region since October 2019. On the flipside, the region has the lowest level of total inventory since records began (919 properties). There have been large numbers of people through open homes likely due to the lack of listings on the market.
More first home buyers in the market are using Kiwi Saver as their deposit and there is increase in investor enquiries, particularly from out of town investors, who have a preference for multi units and flats. There continues to be an active group of buyers who are competing to purchase a property, however, due to the lack of listings on the market, multi offers seem to be the new norm. The shortage of listings may continue into Spring as we head into election time, but demand will stay the same.” Bindi Norwell REINZ CEO
SUMMARY OVERVIEW AND DETAILED STATISTICS:
During the month of August we have seen our market activity increase whereby good properties are selling fast ie. We launched a $500k property on a Monday and had it sold by a week on Tuesday in a multi-offer. We launched a new lifestyle property in the $900ks and struggled to hold back buyers until our first Open Home.
We have been amazed at the strength of our market and feel for those who are missing out on buying their first property. If you are a first home buyer we would encourage you to persevere, as your time to succeed in buying will come.
For Sellers the market could not be better with some outstanding results being achieved.
If you want to sell your property give us a call as now is definitely a good time to be talking and looking at the best method of taking your property to the market.
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