First home buyers showing urgency in Hamilton housing market

MEDIA RELEASE
9 July 2013

First home buyers showing urgency in Hamilton housing market
• Hamilton market sales were 251 homes in June 2013; compared with 301 in May 2013 and 248 in June 2012
• Hamilton city median house price for June 2013 was $335,000; up from $330,600 in May 2013 and down on $349,875 in June 2012
• Median time to sell a Hamilton home in June was 36 days; compared with 31 days in May 2013 and 33 in June 2012
• Only 786 properties were available for sale in Hamilton at the end of June, compared to 862 at the start of June.

Hamilton, New Zealand – Lodge Real Estate in Hamilton, the city’s largest agency by volume, reported today that the number of homes sold during June, 251, was down on last month’s high of 301.

Homes are also taking longer to sell, with days-to-sell during June sitting at 36 days, as compared with 31 days in May.

Lodge Real Estate Managing Director, Jeremy O’Rourke, said one segment of the Hamilton market where agents are seeing a renewed urgency is among first home buyers.

“Over the past month we have seen more and more people coming into the market who are feeling pressure to buy their first home.

“In the discussions we’re having with these buyers, it seems they feel compelled primarily by the possibility of the Reserve Bank changing the loan-to-value ratio in the future,” he explained.

Urgency from the first home buyer segment is contributing to the demand for residential homes in Hamilton outstripping supply. This follows the national trend as reported by the Real Estate Institute of NZ (REINZ) this afternoon.

“Although sales are down this month, the demand for houses in the Hamilton market continues to be relatively strong. As was the issue in May, however, sales continue to outpace listings. Two hundred and fifty-one homes were sold last month; however only 786 properties were available for sale at the end of June as compared to 862 at the start of June,” said Mr O’Rourke.

The median house price for Hamilton city was $335,000 in June. This compares to $330,600 in May 2013 and $349,875 in June 2012.

Mr O’Rourke said, “During the first part of the year, there were only certain suburbs that were experiencing rises in the median house price. But we are now seeing the median house price rising in all suburbs right across the board.”

-ENDS-

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