First National sees house prices, listings, up in regions

26 April 2017

First National sees house prices, listings, up in regions

First National Real Estate Chief Executive, Bob Brereton, says a steady increase in both listings and sales prices, around New Zealand, supports the view that the property market may be about to take off again after several subdued months.

Mr Brereton says that First National Offices, around the country, are reporting an increase in activity with listings significantly up in some regional locations and prices holding steady or increasing.

“There’s definitely a change in mood and a return in confidence to the market – particularly in locations outside Auckland - despite the banks applying tighter rules to their lending”.

Mr Brereton says that the Groups offices in Whangamata, Tauranga, Mount Maunganui, Wanaka, Otaki and Blenheim are all reporting that listings in March either held up or increased – with Blenheim reporting a 10% jump in listings, Tauranga reporting a 30% jump in listings and Wanaka reporting a 70% jump.

“Obtaining stock is less of an issue than it was a few months ago and that normally means that you would see a bit less pressure on prices – but they’re also holding up and even increasing. Price pressure in Whangamata, Blenheim and Tauranga remains strong and Otaki and Wanaka have seen big price increases. The median price for sections in Wanaka increased from $380,000 in March 2016 to $458,000 in March 2017 – and in Otaki the price of urban sections has doubled from $90,000 to $180,000 over the past 18 months”.

The time it takes a home to sell has also rebounded after a recent slowdown with Wanaka experiencing a sharp reduction in time-to-sell from 53 days in February to 37 days in March.

“The average time it takes to sell a home is a reliable early indicator of strengthening market conditions so we will be watching this closely over the next couple of months”.

Mr Brereton says that the situation is a little more mixed in Auckland with listings and prices slightly down in Manukau but up in Howick.

“This is probably a reflection of higher real prices in those locations – which mean that the ability to obtain finance is a bigger issue”.

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