NORTHLAND PROPERTY MARKET UPDATE ON RESULTS FOR DECEMBER 2020
In a SNAPSHOT : Volume is UP (record) on the prior year, median price is UP (record), and properties are selling quickly especially in the $800k and below category with the overall days to sell sitting at 37 days.
The month of December was yet another record month across New Zealand and in Northland. We continue to see low stock levels with only 17 weeks inventory available down from 43 weeks the previous year. So once again you can see that the combination of low inventory and higher than usual buyer demand is seeing higher prices being achieved. There continues to be signs of buyer fatigue around prices as we have seen a significant drop in the number of multi-offers, showing that buyers are no longer willing to just compete on buying the same property.
So far into our New Year nothing seems to have changed from last year, so we still have a very strong SELLERS market with more buyers than we have stock to satisfy.
NATIONAL OVERVIEW: (by REINZ)
As the total pool of properties available for sale in New Zealand falls to record lows, this is continuing to put pressure on house prices, with the country seeing a new record median house price for the fourth month in a row according to the latest data from the Real Estate Institute of New Zealand (REINZ).
NATIONAL MARKET KEY INDICATORS:
NORTHLAND OVERVIEW: (by REINZ)
Northland reached a record median house price in December 2020 of $675,000, up 25.2% year-on-year from $539,000 in December 2019. Far North District and Whangarei District also reached record median house prices of $680,000 and $660,000 respectively in December 2020. The market has remained busy in December with sales volumes increasing 28.1% year-on-year from 210 in December 2019 to 269 in December 2020 – the highest sales count for a December month in 17 years.
Investors are active in the market, both local and out of town, as competition at auctions is strong. Stock is slow to come to the market with new listings down -5.4% to 330, resulting in the lowest level of inventory for the region since records began, although ironically, Northland has 17 weeks of available inventory, which is one of the longest across the country. Access to finance continues to be a struggle for buyers as pre-approvals have become more difficult to secure from the main banks.” Bindi Norwell REINZ CEO
SUMMARY OVERVIEW AND DETAILED STATISTICS:
A great end to what must be the most unusual year ever with all that we have experienced. And with these results for December, we already see the same trends emerging in January. With our Stock being so low we need more listings.
Yes, looking at the market right now you may not see the property you would like to buy, but new properties are coming on the market every day. The real challenge will be that if you are not already on the market to sell you will miss out on buying even when the property you would like to buy comes on the market.
Again, just to add to what we see in the market today, a well-known NZ Economist Mark Smith says that our housing demand will continue well into 2021, but with the caution that the longer our borders stay shut there will eventually be an impact on buyer demand that will see our market cool. He also cautioned that there is also the as yet unknown impact that might come to bear on our economy by downturn in international trade eg. America, Europe etc…
So, if you are thinking of selling ie. Wanting to downsize or upsize or want a change in location to meet family needs, then please call us to help you get the best result for your property.
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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If you are thinking of SELLING then please give us a call as we would love to help YOU!
