Me­dian house price nudges $600,000

Hamilton News - - NEWS - Tom Row­land

Hamil­ton’s me­dian house price is ap­proach­ing the $600,000 mark as pres­sure grows on the city’s dwin­dling hous­ing sup­ply.

The Real Es­tate In­sti­tute of New Zealand re­port for Au­gust shows that Hamil­ton’s me­dian house price now sits at $551,000, an in­crease from $530,000 in July.

Over the month of Au­gust there was a to­tal of 277 homes sold in Hamil­ton, but the city is still strug­gling with the de­mand of more and more buy­ers.

“There are still more buy­ers than sell­ers in Hamil­ton. And while a good num­ber of homes came onto the mar­ket in Au­gust, they were snapped up very quickly. The city is still ex­pe­ri­enc­ing a short­age of qual­ity homes avail­able for sale,” said man­ag­ing di­rec­tor, Lodge Real Es­tate Jeremy O’rourke.

“Af­ter a dearth of list­ings over the win­ter months, Au­gust saw more homes com­ing onto the mar­ket with 333 list­ings. This com­pares to 301 homes listed for sale in July and 294 listed in June.”

Dur­ing Au­gust­there was a de­mand for houses priced over the $1 mil­lion mark, with 14 mil­lion dol­lar homes sold.

This com­pares with just five homes in the last six months which have sold for un­der $200,000. This amounts to 77 for the year. “There is a lot more pric­ing pres­sure on homes sell­ing for $800,000 and higher.

“What that means is we are see­ing prices in this up­per bracket pull away at a faster rate from homes in lower pric­ing brack­ets.

“This is caus­ing Hamil­ton’s me­dian to con­tinue to rise.”

Homes sell­ing with a $1 in front of them, how­ever, are much more com­mon at the top end of the mar­ket.

O’rourke said there is strong con­fi­dence in the Hamil­ton mar­ket com­ing from not just res­i­den­tial buy­ers, but de­vel­op­ers and in­vestors as well.

“De­vel­op­ers are very ac­tive through­out Hamil­ton.

“They are look­ing for land to de­velop du­plex and apart­ment hous­ing op­tions.”

“In­fill hous­ing is also pop­ping up across the city.

“Ad­di­tion­ally, on the out­skirts of Hamil­ton, de­vel­op­ers are look­ing for land to de­velop green­fields hous­ing com­mu­ni­ties.”

“Ad­di­tion­ally, in­vestors are more ac­tive than they have been in quite some time.

“There has been some un­cer­tainty among in­vestors for a few years as fac­tors such as in­sul­ta­tion reg­u­la­tions, the res­i­den­tial te­nan­cies act and the bright-line test were sig­nalled to come into force.

“We’re start­ing to see in­vestors break­ing out of this hes­i­tant mode and be­com­ing more ac­tive.”

“Over­all, all these fac­tors are sig­nals that the Hamil­ton mar­ket is ex­tremely buoy­ant.

“There is no sign of any loom­ing hous­ing cri­sis and it’s cer­tainly not slow­ing down as has been re­ported about the Auck­land mar­ket,” said O’rourke.

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