February buyer frenzy heralds higher Hamilton house prices
11 March 2016
February buyer frenzy heralds higher Hamilton house prices for 2016
Hamilton, New Zealand – Lodge Real Estate’s managing director, Jeremy O’Rourke, today said the start of 2016 has been surprising with buyer demand increasing beyond predictions and residential property prices following.
“At the end of 2015, Lodge was predicting Hamilton house prices would continue to rise, but at nowhere near the rapid rate we experienced last winter,” Mr O’Rourke said.
“However, if February sales are anything to go by, the Hamilton market is going to see house prices continue to jump month on month as we head into winter.
“I believe we are likely to see Hamilton’s median house price continue to break records again and again as we move through the year.”
Real Estate Institute of NZ (REINZ) released February figures today which showed Hamilton’s median house price increased from $388,000 in January to $439,000 in February.
Mr O’Rourke said, as normally happens after summer holidays, January sales were low and new homes listed on the market were few. But at the start of February this changed dramatically.
“More so than in years past, Hamilton experienced a rush of new homes being listed at the start of February. At the same time new buyers came into the market. In fact demand outstripped supply.
“From the conversations we’ve been having, it seems Hamiltonians suddenly woke up to the value in the market. Plus, they have confidence interest rates will remain low. These two factors have triggered sellers to make the decision to shift houses; most often into higher value properties,” he said.
More vendors are choosing to sell at auction, which has led Lodge to experience a standing room only crowd at its weekly auctions.
“More and more sellers are choosing to go to auction and buyer activity in our auction rooms is frenetic. Strong auctions is an additional factor pushing Hamilton home prices well beyond predicted levels for this time of year,” Mr O’Rourke explained.
According to REINZ data 305 homes were sold in the Hamilton market during February while 359 homes entered the market on realestate.co.nz.
For the latest REINZ market data, visit www.reinz.co.nz.