Record high real es­tate prices again

South Waikato News - - Community Cookbook - KELSEY WILKIE

The next few months of­fer a good op­por­tu­nity for first-home buy­ers as in­vestors take a breather in Hamil­ton’s property mar­ket.

How­ever, those dreaming of buy­ing a home in the city might want to act fast, as prices con­tin­ued to climb.

The Waikato/bay of Plenty re­gion was one of six to reach new record high me­dian prices in Septem­ber, ac­cord­ing the lat­est fig­ures by Real Es­tate In­sti­tute of New Zealand (REINZ).

Waikato/bay of Plenty jumped to $458,500 last month, com­pared to $390,000 for the same month last year.

Hamil­ton’s me­dian prices shot up by 20 per cent to $510,750 com­pared to last year.

The trend in sales vol­ume has been eas­ing with drop­ping from from 463 in Septem­ber last year to 306 this year.

Lodge Real Es­tate’s man­ag­ing di­rec­tor Jeremy O’rourke said the vol­ume drop would likely lead to the price gain ease at a lesser rate.

In­vestor ac­tiv­ity had con­tin­ued to de­cline since the an­nounce­ment of Loan to Value Ra­tio (LVR) re­stric­tions, he said.

This month the new LVR re­stric­tions will be in­tro­duced. The stricter rules from the Re­serve Bank are aimed at property in­vestors, how­ever, some of the changes will hit first home buy­ers as the Re­serve Bank has clawed back an eas­ing in how much banks can lend to first-timers with smaller de­posits.

He said be­cause of the new rules, in­vestors had been benched.

‘‘The next few months of­fer op­por­tu­nity for first-home buy­ers.

‘‘In­vestors have been side­lined and are watch­ing how it all plays out.’’

Ray White Hamil­ton di­rec­tor Carl Glas­gow said the new lend­ing rules had im­pacted a por­tion of the mar­ket but did not ex­pect a long-term ef­fect.

‘‘Quite of­ten when these things come in, ev­ery­one sort of pan­ics for a mo­ment, whereas it just takes peo­ple a mo­ment to set­tle down and work out how they’re go­ing to work around that.’’

He said the me­dian price came down to sup­ply and de­mand and stock was still very low.

Waikato has about 11 weeks of stock, ac­cord­ing to REINZ.

REINZ spokesper­son Bryan Thom­son said the real es­tate mar­ket in New Zealand ap­pears to be in some­thing of a two-speed mode at present.

Six re­gions have hit new record high me­dian sale prices: o North­land ($390,000) o Waikato/bay of Plenty ($458,500) o Taranaki ($350,000) o Welling­ton ($480,000) o Nel­son/marl­bor­ough ($450,000)

o Otago ($296,000)

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