The availability of property for sale is at an all-time low in Hawkes Bay, and in July this has shown up as a 14% drop in the number of sales to 98 in Napier and 105 in Hastings.
The imbalance between demand and supply continues to exert upward pressure on prices, as active buyers face competition for the few properties that are on the market. Typically, new listings start to pick up in August after bottoming out in July, and so the relationship between the number of sales and prices may alter in the coming months.
As we move through the winter months and approach spring, the question in buyers (and agents) minds is whether the market responds with more listings for sale.
Demand is greatest for property between $300,000 and $600,000, however the upper tier of the market has eased due to a limited number of potential buyers, especially given recent credit tightening. In this higher sector of the market there appears to be less price pressure and minimal value growth.
Overall, Napier continues to hold the top spot for annual price growth, consistently exceeding 14% for the past two years. However, with a median value exceeding $470,000, unaffordability may bring the Art Deco capital’s dream run to an end.
Generally, market conditions have weakened though, based on current conditions, a significant downturn is not expected. More restrained growth is the order of the day.
For an up-to-date report on the local real estate market please call Cox Partners Estate Agents on
(06) 835-4321 anytime.