NORTHLAND PROPERTY MARKET UPDATE ON RESULTS FOR JANUARY 2021
In a SNAPSHOT : Volume is slightly UP on the prior year, median price is well UP, and properties continue to sell quickly with the overall selling days sitting at 44 days, compared to last year at 59 days.
January 2021 has seen our property market continue much the same as late last year. The Medium Price was well up on the prior year at +22.6%, but down on December 2020 at -5.6%. Stock is still very low but we are slowly seeing more properties coming to market that may see our stock level improve over coming weeks. But for now we continue to see the combination of low inventory and higher than usual buyer demand resulting in higher prices being achieved. We are seeing more properties going to Auction, but a lot of these are getting pre-Auction offers, with multi-offers providing a good result for vendors.
NATIONAL OVERVIEW: (by REINZ)
Despite most New Zealanders taking a summer holiday in January, the housing market was busier and more buoyant than we would usually see at this time of the year, 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 interest in the housing market build quickly after the holiday break with median house prices increasing 22.6% year-on-year in January 2021 to $635,000 from $518,000 in January 2020. The market remained busy with a 3.8% increase in sales volumes when compared to the same time last year and was the highest level of sales for a January month in 5 years.
Bank approvals continue to be slow. Demand has remained high from owner-occupiers and investors, with an increase in interest from out-of-town investors as they look to the regions for more affordable options. Properties are selling more quickly than usual with the median number of days to sell the lowest for a January month on record at 44 days (down from 59 days in January 2020). Inventory levels are still low; however, we expect this to pick up over the coming months.” Bindi Norwell REINZ CEO
SUMMARY OVERVIEW AND DETAILED STATISTICS:
Right now, we are continuing to see what has been described by some as a ‘buying frenzy’, with people from all walks in life and places taking their money o
ut of the bank and putting it into property. For northland we have a high number of out of town people buying as they can buy at a lower cost here compared to Auckland.
We do note however that prices are generally down on December including in Auckland where they say there has been a slight cooling of the market in price and volume sold. So, the question is we are seeing a cooling of our market overall and will this continue?
Both the Government and the Banks are trying to bring about a slow down on prices with investors soon having to provide a 40% deposit and first home buyers 20%. These restrictions were lifted in May last year due to fears of the economy slowing due to Covid-19. So we wait to see what these changes bring to our market.
While we wait to see what these changes may bring, for Sellers right now 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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