Sales turnover in Napier peaked between February and May 2016 easing back in June to 105 primarily due to constraints in the availability of homes for sale. During the past year 37% more homes have sold than in the previous 12 months.
The portal realestate.co.nz shows that the number of new listing fell by 10.9% during May but improved by 21.3% in June. This is likely to reflect positively in the sales volume in July.
The median days to sell continues to sit at approximately 30 days, however properties above $700,000 appear to be taking significantly longer.
After peaking in April, the median price eased back during May and June to $340,000 which is close to the 10-year average of $337,000. Quotable Value is reporting that overall prices in Napier have risen 13% during the past year which is in line with the National average. This improvement corrects poor negligible price appreciation during the previous five years.
Property in Napier is still more affordable than most other regions, and this is supported by low interest rates. While the Reserve Bank is set to cut the office cash rate again it is unlikely that borrowers will benefit because borrowing growth is being serviced by more expensive offshore funding.
The Reserve Bank has also signaled their intention to restrict new mortgage lending on residential investment properties to 60% of their valuation. Most commentators believe this may have a short term dampening effect on the housing market, but is unlikely to have a lasting impact on housing affordability.
Napier: Sales Volume per Month (REINZ)
Napier: Median Price per Month (REINZ)
Napier: Days to Sell (REINZ)