Market activity over Christmas period continued to reflect the strength of the prior months. Turnover eased back in the New Year primarily because of a limited supply of new listings coming onto the market and the lag created by the holiday period. Now that normal schedules have resumed activity is expected to pick up again.
While the number of new listings has improved in recent weeks, the total number of properties for sale remains at historically low levels.
The demand for well-presented, properly priced homes in good localities is very strong often resulting in multiple offers and a price premium (above the asking price) being achieved.
In spite of this Quotable Value data shows that price increases have been relatively modest. QV reports that average prices in Napier are 6% higher than January 2015 and 8.3% higher in Hastings. During the past 6 year’s prices in Hastings have lagged behind those in Napier but now that gap is closing. At last sellers can reasonably expect slightly better prices than those achieved during the market peak of 2007 as prices are on average 2.4% higher in Napier and 3.9% higher in Hastings.
Buyer activity is being boosted by an increase in the number of city dwellers moving back to 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.
Around 93% of Hawkes Bay properties sell by Private Treaty, with the few remaining sales divided between Auction and Tender. No-price selling methods are NOT popular with local buyers who overwhelmingly prefer a clear asking price, and sellers can lose when the best buyer is forced to wait until a particular deadline before they can buy.
Napier Sales Volume
Napier Median Prices