What is driving Hamilton’s record median house price?
Intense competition and confidence drive Hamilton’s record median house price
Hamilton’s median house price achieved a record during April 2018 at $562,000, according to Real Estate Institute of NZ statistics released on 11 May. This is up from a $535,000 median in March 2018.
Lodge Real Estate’s managing director Jeremy O’Rourke says strong competition from buyers, coupled with high confidence at the upper level of the market are key factors behind the surge.
“Only 229 homes were sold in Hamilton during April as compared to 349 in March. However, the volume of homes sold was on par with April 2017 which were 238.
“With volumes down from March yet market confidence up, these factors worked together to contribute to increased competition for Hamilton homes. Our city’s auction rooms are busy with multiple bidders on quality properties. Outside the auction rooms, homes are receiving multiple offers.
“As we said in March, it’s a seller’s market at the moment and we predict this buoyancy will continue for some time,” says O’Rourke.
Mr O’Rourke says sales in the upper end of Hamilton’s market were particularly strong.
“While there is confidence in both ends of Hamilton’s residential housing market, homes above one million are selling strong and represented 3.3% of city house sales during the first four months of the year. That compares to just 1.6% of market sales in the first four months of 2017.
“Lifestyle properties on the edges of the city are now pushing through the $2 million-dollar barrier. Even six months ago, we used to see resistance from buyers to purchase properties above $1.8 million. This resistance has certainly eased and is another factor that’s pushing Hamilton’s median to record levels,” explains O’Rourke.
Total value of homes sales in Hamilton city was $144,225,550 during April. The median listing price was $544,000 while the median sale price was $562,000. The median government value of homes sold in Hamilton during the month of April was $415,000. The median number of days it took to sell a home in Hamilton during April was 36 days.
For the latest REINZ market data for Hamilton, visit www.reinz.co.nz.