Hamilton residential housing market experiencing a lull
15 September 2016
Hamilton residential housing market experiencing a lull within the boom
Despite a slight pull back in Hamilton city’s median residential sale price, Lodge Real Estate’s managing director Jeremy O’Rourke said continued strong activity in Hamilton’s residential housing market during the month of August points to the popularity of the city.
“If you look at historic trends, normally there are a few lulls within a sustained housing boom. And that’s exactly what the Hamilton market is experiencing at the moment.
“Prices never rise in a straight line – there are always some dips and peaks along the way and it appears we’ve entered a dip,” he said.
According to Real Estate Institute of New Zealand (REINZ) figures released this morning, Hamilton’s median house price decreased to $493,750 in August from $510,000 in July.
“Prices have pulled back somewhat. That’s meant some people listing homes within the $350,000-$500,000 range, in particular, are coming onto the market with slightly unrealistic expectations.
“Because Hamilton’s seen two really big months with a lot of stock coming onto the market, the mid-sector of the market isn’t commanding the incredible prices we saw earlier this year because there’s more supply,” he explained.
Mr O’Rourke said within the past quarter there’s been a marked shift in the composition of buyers looking in the Hamilton market.
“The looming loan to value (LVR) restrictions for property investors that kick in on 1 October has definitely quieted investor activity in the local market.
“We’re also seeing a lot more city residents simply looking to make a change or upgrade within the city. Plus, it’s good to see first home buyers back and active in the market with less competition from investors,” he said.
Although prices within the middle sector of Hamilton’s residential housing market have dipped, Mr O’Rourke says there’s still a lot of surprising prices being commanded at auctions.
“We had a home on Borman Road in Rototuna sell for $1.25 million this month. Another home on River Road was predicted to sell around $800,000 and commanded over $850,000.
“We’re still seeing plenty of competitive bidding for higher quality homes. What has changed is, because investors are quiet, there are less bidders for properties within the $350,000- $500,000 range,” explain O’Rourke.
For the latest REINZ market data, visit www.reinz.co.nz.