Buoyant year for house sales
It’s been an interesting year for the real estate industry in Manawatu¯.
Looking back at the real estate market over the past 12 months it has been a buoyant year and a fun year, according to REINZ spokesman for Manawatu¯ Andy Stewart.
Looking ahead to the next year Stewart says he believes this market buoyancy will continue.
‘‘At the start of the year we didn’t know what the market was going to do. From a sales point of view it just got better and better, but from a listings point of view it has become worse, although in saying that we are now seeing an increase in sales.’’
Stewart says six years ago listings in Palmerston North fluctuated between 400 and 500, but this year listings have dropped to between 170 and 180 in Palmerston North and between 20 and 25 in Feilding.
‘‘As a consequence of that the buyer inquiry has been intense all year. What we’ve seen as listings have increased over time, so too has the volume of sales.’’
Stewart says this has been driven from the bottom end of the market, in particular people wanting to buy their first home. This in turn has given existing homeowers the opportunity to move up the property ladder.
While the housing market in larger cities, particularly Auckland, is basically flat with average values slightly lower than they were three months ago Stewart says Palmerston North is bucking that trend.
‘‘On a recent trip to Auckland I couldn’t believe how many properties were for sale, while here in Palmerston North properties are selling within two weeks of coming onto the market.’’
For those working in the real estate industry a shortage of listings means they need to work smarter.
‘‘It can be very difficult for people working in this industry as their income is generated from sales. But I think there are sufficient sales here for everyone to get a piece of the market.
‘‘I think we will start the new year as we are now, I don’t think things will change in the near future.’’
From January 1 banks will be able to issue 5 per cent more low deposit home loans, thanks to an LVR regulation change announced by the Reserve Bank last month. Stewart believes this relaxing of LVR regulations is going to bring more first home buyers in the market place.
However, there are some positives on the horizon with the establishment of a rail head and the relocation of IRD to Palmerston North, Stewart says.
‘‘These are positive moves that will bring people in to Manawatu¯ and these people will want houses.’’
The building industry in Palmerston North is seeing a huge amount of activity.
‘‘However, one of the problems here is a lack of sections for sale. There is a lot of in-fill building going on but there are a lot of people wanting to build as they can’t find existing homes for sale. The demand for sections, particularly in new subdivisions, is very high. We need a lot more sections to satisfy demand and it’s having a selection of sections that’s important.’’
However, Stewart says subdivisions aren’t created in short space of time, they can take two to three years to be developed.
Stewart says Feilding has more subdivisions being developed than Palmerston North and that is driving prices up.
The increased development of retirement villages and resthomes does help bring a number of homes onto the market.
As to the future Stewart is positive. ‘‘In 31 years in the real estate industry in Palmerston North and Feilding this is the most positive I’ve seen it. I think we have had a fantastic year, I really do.’’