House price rise pushes past $500k
Record property prices in the Waikato have seen the median sale price for the region hit $500,000 for the first time.
REINZ data for the year to October show prices in the region rose 9.9 per cent compared to a national median price increase of 3.9 per cent.
Prices rose 61 per cent in Waitomo, 44 per cent in Otorohanga and 27 per cent in Taupo.
REINZ chief executive Bindi Norwell said Waikato is the sixth region in the country to have exceeded the half a million dollar mark at least once.
But REINZ’s Waikato regional director Philip Searle warns house values could drop as a ‘‘kneejerk reaction’’ to the new government. Yet he predicts new interest in Hamilton in the New Year as Aucklanders continue to struggle with high prices.
In the Waipa district, the median sale price was $570,000 for October, compared to $545,000 for September, and $454,500 for October 2016.
A total of 58 properties were sold in Waipa, compared to 53 in September and 67 for October 2016.
In neighbouring MatamataPiako district, the median sale price was $477,000 for October, compared to $438,00 for September and $410,00 for October 2016.
There were 23 properties sold in Matamata-Piako in October, compared to 35 in September and 51 for October 2016.
In Hamilton, the medium sale price of $535,000 is only slightly up on September figure of $533,000.
However, sales volumes dropped 15 per cent in October due to the election hangover and school holidays, said Lugtons Real Estate managing director Simon Lugton in his analysis on the REINZ data.
Just 237 houses were sold in October 2017 compared to 278 in October 2016.
‘‘So the lower volume of 237, down on the previous month and same time last year, was not a huge surprise,’’ Lugton said.
The spring flourish in the market appears delayed and Lugton expects to see a flow of new stock to the market.
‘‘The supply of available housing in Hamilton freed up noticeably in October with the late spring listing surge.
‘‘Auction listing numbers flowing through have increased dramatically in past weeks also. Auction sales as a percentage of the total in October was just under 22 per cent.’’