Report notes changes in activity
After months of unpredictability due to various factors, “sanity” is finally returning to the Hamilton housing market, according to Lodge Real Estate.
Following discussions with vendors about their price expectations and buyers reapplying for loans, Lodge Real Estate agents claimed that November prices might have been “insane,” but things are changing.
The Real Estate Institute of New Zealand’s (REINZ) House Price Index (HPI) for November 2021 saw property prices soar, with median house prices in Hamilton having broken another record by moving from $829,000 in October to $881,000 last month – which also compares to Hamilton’s median of $693,000 in November 2020, a 27% jump in 12 months.
However, Lodge Real Estate managing director Jeremy O’Rourke said a recent auction saw four of five bidders had their bank preapprovals removed the same day as the auction. Moreover, fewer homes are selling under the hammer, with prices being negotiated after failing to reach set reserves, with only one-third of homes at the realtor’s auction on December 08 sold under the hammer.
“There’s still plenty of confidence in the Hamilton real estate market, but there is a definite change happening. It’s a tough market to get your head around because there are so many variables in place,” O’Rourke said.
Read more: REINZ: Prices continue to rise, but growth rates show signs of easing
Last month, Lodge Real Estate saw that housing consents hit an all-time high, and house listings across the country were some of the highest they have been since 2014.
In Hamilton, the number of homes listed for sale last month sat at 529, up 116 properties compared to the same time last year.
“Hamilton buyers have a lot more choice than they had most of this past year, but Auckland has also been locked out of the local market for the past few months. From mid-December, this will change, and we expect to see demand rise even further in coming months,” O’Rourke said.
O’Rourke claimed that Hamilton remains an attractive option for buyers, but real estate agents have to “retool” vendors who were accustomed to setting a reserve price and having it well exceeded at auction.
“It’s a cautious time now, and we’re seeing some sanity come back into the market. The huge price rises we’ve seen in Hamilton during 2020 and 2021 will not continue into 2022,” he continued.
