Sales volumes in the Napier Housing Market eased back to 106 during October which (apart from a surge between February and May) is 5% less than the average annual turnover. This easing is in response to the new Reserve Bank lending restrictions, which came into effect from 1st October 2016.
These restrictions are two-fold: investors across the country now need a 40% deposit and new lending to low-deposit customers must not exceed 10% of the bank’s new lending portfolio. This intentionally tough environment has resulted in an easing in the level of demand from potential buyers (measured by banks running online valuations on their behalf); and a fall in the number of new listings coming onto the market.
Despite this, at current levels the sales turnover in Napier is 23% higher than that 10-year average. That’s heartening news for sellers!
Quotable Value data shows that considering low (and falling) interest rates prices remain firm being 18.1% higher in Napier than the same time last year. However, the latest figures from QV show value growth slowing. This doesn’t mean that prices are falling, rather the rate of increase is easing.
The median days to sell remains steady at 30 days in Napier which, when compared with the 10-year average is an improvement of more than 3 weeks.
The relative volatility of various market measures suggests that the dust may be settling in the regional markets such as Hawkes Bay. Many people appear to be holding out until the New Year to assess the situation then.