First-time buyers flock to area
Central Hawke's Bay continues to win with first-time home buyers as they look elsewhere after property gains in Napier have risen to be comparatively greater than those in Auckland.
Latest valuations from QV (Quotable Value) show Napier values rose 10.3 per cent year on year and by 0.2 per cent over the past three months. The average value in the city at the end of October was $515,304.
Meanwhile, Hastings values rose 6.6 per cent year on year and 1.9 per cent over the past three months. The average value there is now $465,161.
“The Central Hawke's Bay has also seen values rise 19.7 per cent year on year although they did drop by 5.4 per cent over the past three months and the average value there is now $340,811,” QV property consultant Philippa Pearse said.
“First-home buyers are active in Central Hawke's Bay, taking advantage of the Welcome Home Loans as average values in Hastings and Napier have increased above the maximum level for the loans.”
Housing NZ's criteria for firsttime buyers to be eligible for Welcome Home Loans (requiring just a 10 per cent deposit for a bank home loan) in Hawke's Bay, limits maximum house prices to $400,000 for existing properties or $450,000 for new-builds.
Property Brokers regional manager Guy Mordaunt said he had not seen any knock-on effects around Welcome Home Loans in the market.
“First-home buyers are certainly paying more but banks seem to still be lending as long as they can service the loan.
“Hawke's Bay remains very buoyant. Because there are still as many properties selling as are coming to the market, the demand continues to outstrip the supply. This makes it difficult for buyers, creating lots of competition and keeping prices strong.”
Bayley's Hawke's Bay operations manager Kerry Geange said there was still plenty of activity in the market.
“We are seeing some listings in the market where it does seem the vendors are looking to achieve a premium price. Can't really blame them for that though — just becomes a matter of timing and how long they are prepared to be patient for that sale. The real factor at the moment is the banks' lending criteria.
“Central Hawke's Bay has seen a lot of relative growth, both from locals and people moving in. The lifestyle market and sections have been really active. We are certainly seeing firsthome buyers willing to move to the Bay's satellite or ‘commuter' towns outside of the three main towns.
“It's a brilliant opportunity for these areas and communities to really benefit from this recent market change. We have just this week seen multiple strong offers on a CHB lifestyle property, all of the buyers see really good value. This is exactly where we would expect things to be, given where we are in the property cycle and given the stage of the price correction we are in.”
Further analysis conducted by OneRoof.co.nz and CoreLogic NZ show all Napier and Hastings suburbs increased in their median value in the 12 months to October 2018, 45 per cent of which were above the median individual New Zealand worker's yearly salary of $51,844.
OneRoof editor Owen Vaughan said the figures reflected the surge in Hawke's Bay's housing market.
“The average suburb gain in the Napier city was $51,986, with Bluff Hill recording the highest dollar rise, at $76,050.
“It shows there is still real demand out there. Napier is still seeing housing gains well above those in Auckland and even Tauranga.”
Wellington had the biggest share of suburbs earning above the median salary, followed by Napier.
The country's biggest earner, by suburb, was Saint Marys Bay, in Auckland, which enjoyed capital gain of $119,650.
Properties in CHB are selling fast.