According to the latest REINZ data, each of Napier’s market indicators is holding steady. During the past 3 months the Sales turnover has averaged 114 sales per month which is 12% above the 10-year average.
At 27 days, the average days to sell remains uncharacteristically low. The last time it took less than a month to sell a home was in April 2005.
This is having a positive impact on prices, with the current median price sitting at around the $335,000. Quotable Value informs us that prices in Napier are 4.8% better that the same time last year, although Hastings and Central Hawkes Bay prices improved by significantly more at 8.4% and 8.7% respectively.
Not only are well-presented, properly priced homes in good localities selling relatively quickly, there are often multiple offers which results in a price premium (above asking price) being achieved.
In the middle and lower end of the market demand continues to be encouraged by low interest rates and incentives for first home buyers. Buyer activity is also being boosted by an increase in the number of city dwellers moving back into the region, and some out of town investors seeking better returns than those available in metropolitan areas.
A lack of properties available for sale is not only limiting buyer choice, but constraining the scope for potential house sales in the months ahead.
This data means that sellers can have more confidence that their property will sell. Around 93% of Hawkes Bay properties sell by Private Treaty, with the few remainder sales divided between Auction and Tender sales. These latter methods of sale are not popular with local purchasers who overwhelmingly prefer a clear asking price. Importantly for sellers, no-price strategies can mean that the best buyer, who wants to buy now rather than being forced to wait, may be lost.
Since Christmas consumer confidence appears to be steady. Householders don’t appear to have been spooked as much as businesses by drops in dairy prices and some uncertain global economic prospects.
Napier Median Price
Napier Number of Sales
Napier Average Days to Sell