NORTHLAND PROPERTY MARKET UPDATE ON RESULTS FOR MAY 2021
In a SNAPSHOT : Volume is UP on the prior year, median price is well UP, and properties continue to sell quickly with the overall selling days sitting at 35 days, compared to last year at 55 days.
May 2021 has continued to see our market under pressure from more buyers than we have properties to sell. Investors continue to be less active since changes to tax and brightline rule changes were announced. This is providing first home buyers with a greater opportunity to get into the market, but they are struggling to find the right properties for their needs.
So the overall biggest issue we face is a lack of stock to sell with our inventory levels at the lowest they have ever been. Despite it being a good time to sell, sellers seem to be holding back as they too see a lack of properties to buy that will meet their needs. But this really only serves to make it even harder overall for buyers to find a property.
NATIONAL OVERVIEW: (by REINZ)
Median prices for residential property across New Zealand increased by 32.3% from $620,000 in May 2020 to $820,000 in May 2021, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
NATIONAL MARKET KEY INDICATORS:
NORTHLAND OVERVIEW: (by REINZ)
“Median house prices in the Northland region increased 29.2% year-on-year from $530,000 in May 2020 to $685,000 in May 2021. Sales volumes have eased from April 2021 as investors take more of a wait and see approach after the government changes, and first home buyers are struggling to secure a property for a reasonable price. Stock levels continue to be an issue, particularly in the mid-range, with new listings down -16.1% annually and overall inventory down -41.3% year-on-year.
This is the lowest level of inventory seen in the Northland region since records began and this will be contributing to the decline in sales volumes compared to April. Auctions continue to be a popular method of sale in the Northland region, with 21.3% of properties sold under the hammer. The REINZ House Price Index for Northland increased 24.7% to a new record level of 3,817.” Wendy Alexander REINZ ACTING CEO
SUMMARY OVERVIEW AND DETAILED STATISTICS:
Our single biggest challenge this last month and one that will most likely continue all winter is the lack of stock available in our market. Inventory is at its lowest ever and to give you some numbers to this, Whangarei for example would normally have somewhere around 1000 properties to sell, right now we have less than 500. So, it is no wonder that buyer demand remains high.
This is especially so for first home buyers and those seeking a lifestyle property. We also continue to see a good number of Aucklanders and returning Kiwis still looking to buy property with land in Northland.
If you want to sell your property, please give us a call as now is a good time to be talking and looking at the best method of taking your property to the market.
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