NORTHLAND PROPERTY MARKET UPDATE ON RESULTS FOR SEPTEMBER 2019
In a SNAPSHOT WHANGAREI: Volume was up, median price was up but it is still taking longer to sell compared to last year.
September results for Northland overall are showing another reversal to our overall year to date trend with prices down -5.5% on last year, volume is flat at -0.6% with the days to sell decreasing 11 days from last month. But this is not so for Whangarei where the results show prices up +10.3% on last year and volume up +11.5% on last year. See detailed info below.
NATIONAL OVERVIEW: (by REINZ)
Median house prices across New Zealand increased by 6.6% in September to a record high of $597,000, up from $560,000 in September 2018. These results are in line with the REINZ House Price Index (HPI) which saw property values increase 3.6% annually, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
NATIONAL MARKET KEY INDICATORS:
NORTHLAND OVERVIEW: (by REINZ)
“The Northland region saw a decrease of -5.5% to $477,000 in median price compared to the same time last year, likely the result of a drop in the number of million dollar plus properties sold. Whangarei was up in median price at +10.3% on last year. The number of sales decreased marginally by -0.6% annually, but again Whangarei was up +11.5% on last year, while new listings in September dropped -9.1% and days to sell decreased on last month by 11 days, but increased by 16 days from 49 days in September 2018 to 65 days in September 2019.
There are a number of passive buyers watching as new listings arise. Buyers are more prepared with finance or are cashed up buyers from selling higher value properties in the major cities. Investors are increasingly active and are competing with an increase of first home buyers. Historically, as we look forward to the summer period we expect it to be busier, and we believe sales will increase in the coming months.” Bindi Norwell REINZ CEO
DETAILED STATISTICS ARE:
The price movement we are seeing for September as a ‘median’ house price movement is reflecting the fact that we are selling fewer $1m+ properties compared to last year and the large decrease in Kaipara District. At Harcourts Whangarei, we had another excellent month with some new records being set for both the volume and selling prices of properties. This is seen in that Whangarei was up +10.3% on last year’s median price and up +11.5% on last year’s volume of sales. So despite what the overall data is showing we are still seeing a trend where our volume of sales are returning to a more normal historical level of sales but, most importantly prices for the average property are still up and typically 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 October we can also say that we are seeing an increase in new listings and continued high buyer demand and inquiries for properties we have listed.
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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