Home buyer interest strong
The latest REINZ sales data shows the Manawatu¯’s property market remains consistent.
Incoming enquiry levels are still strong in Manawatu, first-home buyers are active and this continues to stimulate the lower end of the market says REINZ Ambassador for Manawatu¯ , Andy Stewart.
‘‘These factors have continued to cause a roll-up effect in activity midmarket with vendors selling their first homes and rebuying at a higher level. Interest rates remain attractive and affordable, which again stimulates all levels of the market.’’
There is still a shortage of listings throughout Manawatu, and coupled with high buyer demand is a clear indicator of a strong seller’s market, Stewart said. ‘‘Prices will continue to increase and or maintain the current level, there is no evidence that this is likely to change in the near future.’’
There were 136 residential house sales recorded in Palmerston North in March according to latest figures released by the Real Estate institute of New Zealand, a slight decrease on the 145 sales recorded in February 2019.
Year on year this is a slight drop on the 142 sales recorded in March 2018, but overall the market is fairly consistent.
Stewart says of the 136 sales, ‘‘It is interesting to note that a total of 61 (45 per cent) were under $400,000, which shows in comparison to other areas around New Zealand we still have affordable houses.’’
There were 38 sales recorded between $400,000 and $500,000 (30 per cent) and 37 sales above $500,000 (27 per cent). Of these, three sales were recorded above $1 million.
The median sale price for March decreased to $415,000 in comparison with median Rateable Value (RV or GV) of $380,000.
The median number of days to sell was 24 days as fresh listings are snapped up. ‘‘Many properties are being sold under multiple-offer presentations in the first week or two on the market,’’ Stewart said.
‘‘It was pleasing to see an increase in the number of available listings to between 270 and 280 on the market however this is still a low level in comparison to buyer demand.’’
There were eight section sales recorded in March.
Six houses sold in Ashhurst with prices also on the rise.
In Feilding there were 30 house sales in March, compared with 27 sales recorded in January 2019, and 36 sales recorded in March 2018.
The median sale price increased to $419,500 compared to the median Rateable Value was $295,000.
The median days on the market also decreased to 18 days.
Available listings in Feilding increased to between 40 and 50; still low given buyer demand.
Across the regions the Manawatu/ Wanganui market tracked very close to the highly competitive February market, because of the shortage of available properties on the market.
‘‘This competition is seeing properties snapped up and as a result the region has the lowest median number of days to sell for the country,’’ REINZ chief executive Bindi Norwell said.
Total inventory was down by 19.6 per cent year-on-year (now at 864) and new listings down by 13.5 per cent year-on-year (507 new listings).
Attendance at newly listed properties is very good, Norwell says. ‘‘Purchasers have a good hold on the market value and will recognise overpriced properties.’’