After a post-holiday lull in January sales turnover recovered in February with 125 sales in Napier and 120 in Hastings. This level of turnover is 33% higher than the 10-year average.
The median price has improved steadily since September 2015 with the Quotable Value monthly house price index showing a 7.1% improvement in Napier during the past year and an 8.1% improvement in Hastings. This means that sellers can now reasonably expect better prices than those achieved during the market peak of 2007 as prices are now 2.4% higher in Napier and 3.9% higher in Hastings than then.
First home buyers continue to be active, and are having to pay more than they might have expected because investors (often from out of town – Auckland and Wellington in particular) are seeking better returns that those available in the larger metropolitan areas, and are competing for similar dwellings.
Buyer activity is also being boosted by an increase in the number of people moving back to the region, and of course historically low interest rates continue to favour home owners and property investors.
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.
The biggest market constraint is the availability of homes for sale. Currently the total number of homes for sale in Napier is approximately 335 and 380 in Hastings. This historically low level is almost half of what was for sale at the same time last year. This lack of properties 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.
For more information please contact Malcolm Cox on (06) 835-4321.
NAPIER: Sales Turnover
NAPIER: Median Price
NAPIER: Supply of Listings