Region’s sales still booming

Prices in the Manawatu¯-whanganui region jump a record 25.4 per cent year on year.

Manawatu¯ -Whanganui experienced the highest annual price increase nationwide year on year to July 2019, according to data from Real Estate Institute of New Zealand (REINZ).

‘‘Median prices across the country continue to increase with 10 out of 16 regions seeing an increase in median price since the same time last year, and five of those seeing double-digit growth,’’ says Bindi Norwell, REINZ CEO. ‘‘Prices in the Manawatu¯ Whanganui region increased the most with a 25.4 per cent lift since the same time last year to $370,000, led by strong double-digit growth in all seven districts and a 12.5 percentage point increase in properties sold in the $250,000-$499,999 price bracket.’’

The Horowhenua and Whanganui districts saw record median prices of $370,000 and $292,000 respectively. The Ruapehu district saw strong price growth with a median price of $255,000, up 43.3 per cent annually. Sales volumes for Manawatu¯ district also increased significantly, 50 per cent, compared to this time last year.

‘‘Anecdotally, we have seen less cash buyers in the market, and most buyers want to carry out due diligence to satisfy clauses in contracts. There is still a strong demand from firsthome buyers, but the lack of listings is likely to be causing competition. The REINZ House Price Index in the region reached another new high this month with an increase of 18 per cent year on year to 3146, one of only two regions alongside Southland to reach over 3000,’’ Norwell said.

REINZ Manawatu¯ ambassador Andy Stewart says the local market continues to show extremely positive trends, even though sales volumes have been affected by the critically low level of available listings.

Palmerston North recorded only 99 residential house sales during July, a sizeable drop on the 124 recorded in June and comparatively less than the 119 recorded in July 2018.

Stewart says, ‘‘Overall for 2019 the market remains very active but extremely limited by the lack of listings. Of the 99 sales, it is interesting to note that only 4 (4 per cent) were under $300,000, and 34 per cent were under $400,000. There were 25 sales recorded between $400,000 and $500,000 (25 per cent) and 40 above $500,000 (41 per cent) of these, four sales were recorded above $1 million.’’

The median sale price for July dropped to $441,500 compared with median Rateable value of $380,000.

‘‘The median number of days to sell was just 23 days as fresh listings are being snapped up, many properties are being sold under multiple offer presentations in the first week or two on the market,’’ says Stewart.

Available listings remained critically low at 150 to 160.

‘‘There were 10 residential section sales recorded in July, indicative of the strong demand to build,’’ says Stewart. ‘‘Seven house sales in Ashhurst in July is a good month.’’

Feilding recorded 27 house sales in July, a significant drop on the 41 sales in June 2019 and is a slight drop on the 31 sales recorded in July 2018.

Median sale price increased to $435,000 compared to median rateable value of $260,000. Median days to sell dropped to 27. Available listings in Feilding remained extremely low at 25 to 30, given buyer demand. Open home attendances varies, but midrange homes and new listings are attracting good numbers. ‘‘Buyer activity for new listings is still extremely strong, resulting in a large number of multiple offers, creating optimum prices and quick sales.’’