Hamilton million dollar homes show unprecedented increase
Hamilton million dollar homes show unprecedented increase in sales
Lodge Real Estate’s managing director, Jeremy O’Rourke, today confirmed the number of million dollar residential properties sold in Hamilton has officially hit a record high.
“Latest data shows that six Hamilton homes above the million dollar mark were sold in May 2016, compared to three during the previous month (April), and two just one year ago (May 2015),” he said.
“Overall, between May 2015 and May 2016 there has been an 89% increase in the number homes above the million dollar mark sold in Hamilton,” he said.
Mr O’Rourke said the rise in million dollar sales demonstrates an increasing confidence from buyers in this top bracket to pay more to get what they want.
“We are not seeing the same hesitancy as we saw a year ago from buyers purchasing homes above the million dollar mark,” he said.
“Factors such as low interest rates, higher decile schooling in certain areas, and consistency of neighbourhood are prompting buyers to upgrade their homes in this market. They’re aware if they wait to upgrade, it could cost them more in the long-run.
Mr O’Rourke said the tightness of listing stock in Hamilton is also contributing to the number of million dollar sales.
“While demand for housing continues to remain strong, sales stock is low so choice is limited. This increases competition for available properties – including the million dollar homes.
“People know if they don’t get in today, they’re likely to miss out on the home they want. Many are willing to pay larger sums of money to ensure they get the property that best fits their criteria.”
He said properties above the million dollar mark have traditionally been sold in the river and lake areas, however buyers are now prepared to pay similar prices in the North East of Hamilton.
According to Real Estate Institute of NZ (REINZ) data released this week, median house prices have also hit a record high.
REINZ data reports New Zealand’s national median house price has passed the $500,000 mark for the first time, hitting $506,000.
Hamilton City’s median house price, specifically, has increased to $480,000, which is 4.8% higher than last month (April 2016) and 29.7% higher than one year ago (May 2015).
For the latest REINZ market data, visit www.reinz.co.nz.