Hamilton median house price highest since September 2007

Hamilton median house price highest it’s been since September 2007

• Hamilton’s median house price was $355,000 in October 2013, which is exactly the same as it was in September 2013. For two consecutive months, the city’s median house price is the highest it’s been since it hit $365,000 in 2007.
• The number of homes sold in Hamilton during October 2013 was 247 compared with 253 during September 2013.
• Stocks remain tight, but are stronger than past months, with 849 homes available for sale in Hamilton during October 2013, compared to 780 in September 2013.

Hamilton, 12 November 2013 – Lodge Real Estate’s managing director, Jeremy O’Rourke, said Hamilton’s median house price has hit a six-year high two months in a row and he doesn’t see prices easing anytime soon.

“In September, Hamilton’s median house price spiked to $355,000. In October it held this gain at $355,000. For two consecutive months, house prices are the highest they’ve been since the median hit $365,000 in 2007. And we suspect prices will remain buoyant in the medium term,” he explained.

Mr O’Rourke said 19% of Hamilton house sales were above the $500,000 mark during October. He said this was higher than normal as most months only around 14% of the city’s home sales were over half a million.

“Buyer competition and confidence has contributed to rising prices in the higher end of the market over the past six months.

“Additionally, as we’ve been saying for a while now, the continual lack of housing stock is one of the main reasons we’re now seeing the median house price spike. When stocks are lower, this causes buyers to stretch into higher price brackets and, therefore, the median rises.

“We’ve seen more stock coming onto the market, but not enough to keep up with buyer demand. The number of homes available for sale by agents in Hamilton during August was 749, in September was 780 and during October in rose to 849 available for sale,” said Mr O’Rourke.

The number of homes sold in Hamilton during October 2013 was 247, as compared to 253 sold during September 2013.

O’Rourke said that unlike Auckland’s market where it’s been reported that first-home buyer activity has significantly lessened since the Reserve Bank announced LVR restrictions, there has been significant activity in the under-$320,000 price bracket in Hamilton.

“Buyers in the $250,000-$320,000 price bracket are really feeling the pressure to buy a property before their bank’s pre-approval deadlines lapse. One of Lodge’s staff members is in this market and she’s missed out on several properties in the last month where she’s put in an offer and been competing with three to four other buyers.

“This phenomenon of first-home buyers purchasing properties under a tight timeframe has resulted in an inflationary effect on homes within the lower price bracket here in the city. Again, this is just one more factor in the Hamilton market putting pressure on our median house price,” explained Mr O’Rourke.

ENDS

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