‘Critically low’ listings affect sales
Fielding’s’ median sale price spiked to $462,500 for the month of August according to the latest data released by Real Estate Institute of New Zealand (REINZ). This compares to the median rateable value of $300,000, and exceeded the $460,000 in Palmerston North.
Record median prices were recorded in Manawatu¯ Whanganui with a 25.6 per cent increase to $390,000, up from $310,500 at the same time last year.
But house prices around the country continue to tell two very different stories.
Median house prices across New Zealand increased by 5.5 per cent in August to $580,000, up from $550,000 in August 2018. But excluding Auckland, they were even stronger, increasing by 9.5 per cent to a new record high of $498,000, up from $455,000.
The median prices in Auckland fell by -3.5 per cent to $820,000, down from $850,000 at the same time last year.
‘‘The Manawatu¯ property market continues to show extremely positive trends,’’ says REINZ ambassador for Manawatu¯ Andy Stewart.
Incoming inquiry levels continue to be strong, first-home buyers are active in the market and this continues to stimulate the lower end of our market.
‘‘These factors have continued to cause a roll-up effect in activity midmarket with vendors selling their first homes and rebuying up at a higher level,’’ Stewart says.
‘‘Interest rates are predicted to drop again with the recent drop in the Official Cash Rate (OCR). In addition the recent announcements linked to the Government reset of Kiwibuild, including the progressive home ownership model which sees Government-backed deposits lowered from 10 per cent to 5 per cent, will significantly help a number of firsthome buyers, as saving for that initial deposit is often the biggest hurdle to getting on to the property ladder.’’
Unfortunately this will not help in creating more properties available on the market to satisfy the growing demand, he says.
‘‘Buyer activity for new listings is still extremely strong with most agencies continuing to report strong buyer activity resulting in a large number of multiple offers from purchasers, creating optimum prices and quick sales for sellers.’’
There has been very strong buyer inquiry for lifestyle properties on the market, which is also very positive for the region.
In Palmerston North, 124 residential house sales were recorded during August, an increase on the 99 sales recorded in July, but ‘‘a sizeable drop on the 144 sales recorded in August 2018’’.
Overall for 2019 the market remains very active but extremely limited by the lack of listings. ‘‘Of the 124 sales, it is interesting to note that only five (4 per cent) were under $300,000, and a total of 36 sales (29 per cent) were under $400,000. There were 40 sales recorded between $400,000 and $500,000 (33 per cent) and 48 sales above $500,000 (39 per cent).’’
There were no sales above $1 million.
The median sale price for August increased to $460,000 in comparison with median rateable value (RV or GV) of $370,000.
The median number of days to sell was 27 days.
There were two residential section sales recorded in August.
Ashhurst had only one house sale during August, again because of the lack of available properties.
In Feilding, 29 house sales were recorded for August, slightly up on the 27 sales recorded in July 2019 and a slight drop on the 32 recorded in August 2018. One residential section sale was recorded.
The median number of days to sell dropped to 22 days on the market.
Available listings in Feilding sit at 25 to 30; ‘‘extremely low’’ given buyer demand in the town.
‘‘Sales around the region have been hugely effected by the critically low level of available listings.’’