Hamilton city housing stocks fall dramatically

MEDIA RELEASE
14 May 2013

Hamilton city housing stocks fall dramatically – rising prices inevitable

• The number of homes listed for sale during the month of April 2013 in Hamilton city fell dramatically to 319. This compares to 369 homes listed in March 2013 and 398 listed during February 2013.
• Hamilton market sales were 250 homes in April 2013; compared with 275 in March 2013 and 190 in April 2012.
• Hamilton city median house price for April 2013 was $325,000; down on $342,000 in March 2013 and down on $338,500 in April 2012.

Hamilton, New Zealand – Lodge Real Estate in Hamilton, the city’s largest agency by volume, reported today that dramatic decreases in housing stocks will soon put pressure on city house prices.

“Housing stocks were unexpectedly down in April. There were only 319 houses listed for sale in the city during April, compared to 369 in March and 398 in February.

“We’ve seen a 5% decline in housing stocks over the past two months. However, in the past two weeks, we’ve seen a further 5% decline.

“Meanwhile, we have a lot of keen buyers looking for quality homes, which are being snapped up quickly.

“The lack of stock coupled with strong buyer demand is starting to put pressure on Hamilton’s house prices. We’re seeing evidence of this at auction where homes are selling for well above CV,” explained Managing Director, Jeremy O’Rourke.

Home prices in most Hamilton suburbs are up compared to last month, even though Hamilton’s median house price was down on last month’s median to $325,000 for April. This compares to $342,000 in March 2013 and $338,000 in April 2012.

Mr O’Rourke said the falling median is not a true reflection of the pricing pressure buyers are realising in the current market.

“You have to remember that March’s median house price was skewed upward due to the five sales we had over the million dollar mark that month. The median is not a true reflection of the pressure we are seeing in the majority of price brackets where most buyers are operating,” he explained.

Mr O’Rourke said the current market situation normally would result in more properties going to auction. However, he said Hamilton sellers have not been quick to sell through this channel.

“With strong buyer demand and fewer homes on offer, the market is moving on a daily basis. That means auctions should be more popular because in a highly competitive situation auctions help you find your home’s true value on the day.

“The Hamilton market, however, is a bit of an anomaly. City-wide, less than 30% of homes are being taken to auction. That’s compares to Auckland, where around 50% homes are currently being sold at auction,” said Mr O’Rourke.

The number of homes sold within Hamilton city during April 2013 was 250, as reported by the Real Estate Institute of NZ (REINZ) today.

This month’s sales compared to 275 homes sold in the city during March 2013 and 190 one year ago during April 2012.

Mr O’Rourke said the past six months has been an ideal market for property investors and he would recommend investors act now to be ensured the best future margins.

“If you have extra funds, I would say now is a great time to buy an investment property. Prices are definitely showing signs of going up. You’re still able to get a great deal in Hamilton and make some money on-selling the property at a later date. There is a bit of urgency, however, as the potential for making the great margins is getting narrower each day.”

-ENDS-

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