Hamilton property market ideal for first home buyers

MEDIA RELEASE
12 September 2012

Hamilton residential property market ideal for first home buyers and investors

Hamilton, New Zealand - Lodge Real Estate in Hamilton, the city’s largest agency by volume, reported today that the city’s residential property market is strong and steady.

The Real Estate Institute of NZ (REINZ) reported Monday that the national median house price increased by $9,000 from $361,000 to $370,000 in August - a new record high. Hamilton’s median house price continues to hover around the $335k mark; it decreased slightly from $338,820 in July to $330,000 in August.

Managing Director of Lodge Real Estate in Hamilton, Jeremy O’Rourke, says the small drop in the median house price reflects an increase in first home buyers and investors coming into the market.

“Hamilton currently has a number of homes for sale on the lower end of the price scale. Of the 230 homes sold in August, for example, there were 72 homes sold in the $300,000-$399,000 bracket and 84 homes sold that were under $300,000.

“A good number of lower-priced homes available has brought first home buyers and investors into the market in strong numbers,” he explains.

Mr O’Rourke says indicators are showing Hamilton house prices are likely to rise and serious buyers should consider making a move now, especially if they are house swapping.

“We’re currently seeing Auckland under considerable pricing pressure – a pressure the Hamilton market isn’t feeling yet. Historically, however, the Hamilton market always follows Auckland, which means we will likely see house prices rise over the next six months or so.

“If you are considering selling a home and buying another in Hamilton, it would be financially sensible to make your move soon before prices rise,” explains Mr O’Rourke.

The average number of months Hamilton homes are on the market is currently sitting at 4.05. Mr O’Rourke says the time to sell is steadily decreasing and is a factor that will also lead to upward pressure on future house prices.

“Historically when we get down to an average of three (3.0) months to sell homes in Hamilton, we’ll see an upward shift in prices. The numbers are indicating we’re gradually heading toward that mark,” he says.

Mr O’Rourke says, overall, the Hamilton market is strong and there is huge confidence on the part of both buyers and sellers.

“A good example of the confidence we’re seeing out there is one of our agents, Trevor Palmer, today auctioned his own Frankton residential property with no reserve. Normally, this would be viewed as a very risky move. However, in the end it achieved a fair market value of $233,000.

“Trevor’s confidence to go to auction with no reserve is a tangible demonstration that the Hamilton market strong and operating responsibly.”

-ENDS-

© Scoop Media