Lodge Real Estate’s managing director Jeremy O’Rourke says the looming election has put a damper on residential property listings and purchases in Hamilton. However, a lift in prices and buyer activity is expected to occur in the city post-election.
Statistics by the Real Estate Institute of NZ released Friday show the number of homes listed in Hamilton during the month of August was down 22% as compared to one year ago. Whereas the number of homes sold was only 255, down 29% compared to one year ago and up 2% on July figures.
“We’re seeing a typical lull in Hamilton’s residential market activity which happens ahead of every three-year election cycle,” O’Rourke says. “What we also expect to see is an increase in buyer urgency from October and through to the end of the year.”
O’Rourke says what is different from past election cycles is the number of buyers actively looking to purchase in the Hamilton market.
“There are a lot of potential buyers looking to purchase in Hamilton. For instance, open homes are busy right across the city. However, many of these potential buyers are in a wait-and-see mode primarily, we expect, due to the election.
“When you couple this increased demand with the fact that there are fewer homes available for purchase in the city, you have the perfect mix of supply and demand which is likely to result in a lift in the median house price. Additionally, quality homes should get snapped up quickly once we have the election result and buyers start moving.
“For those who are in a position to act quickly, these next few weeks pre-election are a great time to buy before prices rise. And following the election will be an ideal time to list as buyers get more serious,” explains O’Rourke.
Mr O’Rourke said auction rooms across the city are experiencing higher clearance rates.
“During August we saw a greater number of Hamilton homes bought unconditionally in strong competition in our auction room. As a result, auction clearance rates lifted to around 52% of homes up for auction selling on auction day during August. This is up significantly from what we were experiencing just a few months ago.”
The median house price in Hamilton during August 2017 was $546,500, up from $529,000 in July and up from $493,750 one year ago.
For the latest REINZ market data, visit www.reinz.co.nz.