What is the best-performing main centre over the quarter?
Experts previously predicted that the housing market would crash and burn amid the COVID-19 pandemic. However, the market has remained resilient over the past few months – with signs of growth emerging in markets nationwide, according to CoreLogic.
The latest CoreLogic House Price Index revealed that property values nationwide increased by 0.8% to a national average of $743,678 over the three months to September. They also increased by 7.6% year-on-year nationally.
Auckland had seen its first property value increase since the pandemic hit the market, boasting a 0.5% increase over the month and an average value of $1,078,326. However, it still performed weaker than the other main centres over the three months to September (down by 0.4%).
In contrast, Hamilton was the best-performing main centre over the quarter, boasting a 3.2% increase and an average value of $647,777. It had also seen consistent growth of 9.7% over the last year.
“The combination of low-interest rates, access to credit, and renewed confidence has seen demand hold firm. Limited available supply, in the form of a low number of for-sale listings, remains a key contributor to the property market's resilience to lower values,” said CoreLogic head of research Nick Goodall, as reported by Landlords.
He added that market activity has returned to normal despite the impacts of the second lockdown, thanks to the perceived safety of property and availability of cheap money. The market has also remained resilient in September, with activity and values either holding up or increasing further.
“The likelihood of rising unemployment is a factor to watch, but for now, the key drivers remain ultra-low mortgage rates and the tight supply of available listings,” Goodall concluded.
