Hamilton house prices achieve historical highs but price spikes will taper

Lodge Real Estate’s managing director Jeremy O’Rourke, today said Real Estate Institute of NZ (REINZ) statistics released Friday (11 September) show Hamilton’s median has hit an all-time high of $415,500.

However, he says the huge price spikes experienced over the winter period should taper off as typical Spring market trends take hold.

“We’ve been saying since January that Hamilton’s median would crack the $400,000 mark this year and it’s finally happened in August.

“This winter was an unusual time in the Hamilton market. We’ve seen many vendors achieve prices for quality homes that surprised even our veteran agents. This is mainly due to low stocks and buyers desperate to get into properties quickly.

“With Spring arriving, listings are increasing. This is taking the intensity out of the market. Buyers are not as desperate as they have been the past few months, but they still have urgency.

“As a result, we suspect the spectacular price growth the Hamilton market has experienced should settle down. Prices should remain on an upward trajectory, but rise at a more sustainable pace,” explained Mr O’Rourke.

408 homes were sold in Hamilton during August 2015. This compares to just 198 sold in August 2014. Around 50% of homes were sold at auction during the month, as compared to only around 30% of homes being taken to auction one year ago.

“For the first time since 1982 Lodge has had to add a second auction day during the week. We’ve always held our auctions on Wednesdays. To keep up with the demand for auctions, in August we began also conducting auctions on Fridays,” said Mr O’Rourke.

Hamilton’s August median of $415,500 rose from $389,000 in July 2015. This is up from $346,500 in August 2014.

Mr O’Rourke cautioned Hamilton home owners who are considering selling in the next few months to have realistic price expectations.

“We’re finding some vendors have got caught up in the market hype over the past few months. Some now have unrealistic price expectations. It’s still a very strong market, but we are telling vendors not to get overzealous and maintain a realistic outlook.”

Lodge Real Estate is Hamilton city’s largest real estate agency by volume with over 34% of residential market share. For the latest REINZ market data, visit www.reinz.co.nz.

ENDS

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