The continuing strong activity in the property market is heartening news for Hawkes Bay home owners which, like many other provincial areas, has emerged from a long eight-year period of stagnant economic growth and poor job prospects.
There were 128 sales in Napier during May, which is 25% higher than the 10-year average.
However, with fewer properties being listed the number of homes available for sale has dropped significantly. In May 2015 there were 525 homes for sale in Napier, and a year later there are less than 270, which represents less than 2 ½ months’ supply.
The rise in LVR restrictions in Auckland from 20% to 30% is forcing investors to look to provincial areas like Hawkes Bay. This combined with improved opportunities for first home buyers with the easing of the deposit requirement from 10% to 15%, and low interest rates, is creating increased competition between buyers. In many situations there are multiple offers.
Subsequently prices have been escalating, with Quotable Value reporting that the average price in Napier has leapt 11.2% compared to the same time in 2015. REINZ reports that the median price in May 2016 was $360,000.
The median days to sell more than halved from 63 days last year to just 24 in May 2016. This is the shortest period since February 2004.
The future looks positive as migration is increasing, business confidence is improving and economic growth is gaining strength. More jobs are also becoming available particularly in the horticulture, wine and tourism sectors.
Napier: Sales Volume
Napier: Median Price
Quotable Value: Quarterly Price Index (NZ, Auckland, Napier)
Napier: Supply of Listings