House price ‘pokies’ throw up records in Waikato
The ‘‘pokies machine’’ of house price statistics has thrown up record median sales prices in three Waikato districts in June, the greatest number in any region nationally.
However, the figures come on the back of lower sales volumes.
The records came in Taupō , Thames-Coromandel and Waipā districts, according to the Real Estate Institute of New Zealand (REINZ). Taupō ’s median was $939,000 (on 41 actual sales in June, down 10 on May), Thames-Coromandel’s was $1.18 million (44 sales, down 15), while Waipā ’s was $970,000 (53 sales, down three).
Assisted by the records in the three districts, the region’s overall median price was up 14.3% annually to $840,000 in June.
Besides the three record-setters, Waikato district and Hamilton city also recorded a median price rise in June but other districts were marked as having drops on May medians.
In the busiest market, Hamilton’s median was $827,000 in June, better than both May and June 2021, but volume was 181, compared to 222 the previous month and 317 a year earlier.
Overall, there were 447 sales regionally in June, down 81 on May and down 256 on June 2021. The majority of districts had sales drops compared to both May and a year earlier. The time taken to sell had increased 15 days over June last year. By contrast, overall listings in Waikato were up more than 20% in June.
REINZ’s Waikato director Neville Falconer said in the report: ‘‘Owneroccupiers accounted for the greatest activity, with increased interest from first home buyers and investors.
‘‘Like all regions, Waikato has seen a shift in market sentiment.’’
‘‘Buyers now have more choice and less urgency to decide but are also more cautious.’’
Neville Falconer
Buyer demand was down, properties were taking longer to sell and vendors were concerned about reducing their expected price expectations.
‘‘Buyers now have more choice and less urgency to decide but are also more cautious.’’
Agents expected high stock levels to decrease over coming months with fewer new listings over winter and more properties withdrawn. Sales could increase if changed lending criteria provides some relief to buyers.
In an interview, Falconer said he didn’t see the three records as being particularly significant at this stage, although he thought prices may be being supported because ‘‘there’s not a lot of urgency for sellers’’.
Despite rising mortgage interest rates which could pressure people to sell, Falconer thought some may have locked in fixed rates for some time, while others had built up enough equity that they felt comfortable hanging on to homes despite rising rates. But the lower volume of sales regionally also meant it was hard to see a trend of rising prices in Waikato for the time being, Falconer said.
‘‘Prices may come off more over the next few months,’’ in New Zealand generally, Falconer said.
With Covid-19 restrictions having eased, people heading offshore to live and selling houses to do so could further help push down prices by increasing stock on sale, Falconer added.