What’s Happening in the Hastings / Hawkes Bay Market? The median price trend is rising very strongly, and the sales volume trend has been increasing over the past six months after years of decreasing. The days to sell trend has been stable for two years. The House Price Index for the Gisborne/Hawke’s Bay has had strong growth over the past year.
O
ur seasonally adjusted results tell us that, compared to what we expect when moving from November to December, the observed decrease in median price was greater than expected and the observed huge decrease in sales count was greater than expected. The current Days to Sell of 32 days is less than the 10-year average for December which is 40 days. The level of inventory available for sale currently sits at eight weeks, one week less than in December 2017. Bindi Norwell, REINZ CEO, says “With two consecutive record high median house price months in October and November, Compared to Dec 2017: • Median Price up 9.3% • Sales Count up 7.2% • Days to Sell increased by 5 days Compared to Nov 2018: • Median Price down 2.8% • Seasonally adjusted median price down 1.7% • Sales Count down 29.6% • Seasonally adjusted sales count down 8.9% • Days to Sell increased by 1 day.
the Hawke’s Bay market continued its strong performance during December. The median house price increased by 9.3% year-on-year, but dipped slightly from November’s median price, down 2.8% to $457,000. Overall inventory levels still remain at 8 weeks, despite a 3.6% increase of new listings compared to December 2017. There continue to be multiple offers for many of the listed properties.
their properties reflected by a 10.3% increase in the median listing price for the region. This has not lessened demand as Hawke’s Bay was one of only four regions to see an annual increase in sales volumes. We expect that the market will continue in this positive spirit for the first few months in the new year.”
First home buyers and investors made a comeback to the market and showed an increased demand. With the two months of record high median prices, vendors are expecting a bit more for
Median Sale Price for December 2018 $442,500
Hastings District Waipukurau Clive Napier Havelock North
$305,000 $330,000 $495,000 $659,000
Disclaimer: Every effort has been made by Mike Pero Real Estate to ensure that the information contained in this publication is complete and accurate. Prospective purchasers and sellers should make their own enquiries to verify any information contained herein. While our information has been prepared with due diligence and care, Mike Pero Real Estate does not accept liability for any errors, mistakes, omissions, or inaccuracies whether expressed or implied.
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Annual Median Price Changes
REINZ Residential Statistics Report for December 2018 REINZ figures show lowest number of properties sold for the month of December for 7 years.
DECEMBER 2017-2018
“While December is usually a quiet month as people focus on Christmas holidays, December 2018 was extremely quiet with the lowest number of properties sold for the month of December for seven years. Additionally, 12 out of 16 regions saw an annual decrease in the number of properties sold” says REINZ Chief Executive, Bindi Norwell. Median house prices were recorded as follows: Northland
$480,000
Auckland
$862,000
Waikato
$529,147
Bay of Plenty
$610,000
Gisborne
$338,000
Hawke’s Bay
$457,000
Manawatu/Wanganui
$320,000
Record Median Sales
Taranaki
$380,000
Increased
Wellington
$605,500
Stable
Tasman
$585,000
Nelson
$557,500
Decreased
Marlborough
$426,000
REINZ House Price Index
West Coast
$219,000
The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.3% year-on-year to 2,740.
Canterbury
$455,000
Otago
$430,000
Southland
$250,000
NZ excluding Auckland
$480,000
NEW ZEALAND
$560,000
The HPI for New Zealand excluding Auckland increased 8.0% from December 2017 to a new record high of 2,672. The Auckland HPI decreased -1.7% year-on-year to 2,822. The REINZ HPI again saw 11 out of 12 regions experience an increase over the past 12 months, highlighting the continued strength of the property market. The only exception was Auckland. In December the Manawatu/Wanganui region again had the highest annual growth rate, a 17.7% increase to a new record high of 2,867, followed by Gisborne/ Hawke’s Bay in second place with an annual growth rate of 13.7% to a new record high of 2,654 and in third place was Otago with a 12.4% annual increase to a new record high of 2,867. Last month we noted that Waikato’s index had overtaken Auckland’s index, the first time Auckland’s index had been overtaken since March 2015. However, December has seen another three regions join Waikato in overtaking Auckland’s index – Manawatu/Wanganui, Taranaki and Otago.
Days to Sell The median number of days to sell a property nationally increased by 3 days from 32 to 35 when compared to December last year. For New Zealand excluding Auckland, the median days to sell increased on an annual basis by 2 days from 31 to 33. Auckland saw the median number of days to sell a property increase by 5 days from 34 to 39 – the highest days to sell for the month of December since December 2001. For the sixth month in a row, Southland has the lowest days to sell of all regions at 23 days, down from 27 at the same time last year.
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The REINZ House Price Index shows: New Zealand
+3.3% on Dec 2017
NZ ex Auckland
+8.0% on Dec 2017
Auckland
-1.7% on Dec 2017
New Zealand
-0.3% on Nov 2018
NZ ex Auckland
+0.3% on Nov 2018
Auckland
-0.9% on Nov 2018
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
Airbnb to boost your borrowing power Did you know Airbnb income could count towards a mortgage application?
For those with an unused bedroom, apartment or beach house, sharing sites like Airbnb are great to make a little extra income. This extra income has another benefit of boosting your borrowing power when applying for a mortgage, so here’s what you need to know.
of the paperwork and tax obligations.
Think like a business
However, it can only be considered if the accounts and paperwork are up-to-date.
For a lender to consider Airbnb income, the applicant’s accounts need to be completed as they would for a business. Lenders don’t just look at the income from the property, they also consider expenses like cleaning, insurance, power and potential depreciation. Remember that extra income also means paying more tax, so make sure you get good advice from a qualified accountant. Lenders could ask for up to two years of financial statements, so it pays to be on top
Already on Airbnb? If you’re purchasing a property with a history of Airbnb rental income – even if it wasn’t under your ownership at the time – it can still be used in the mortgage application.
If a property appeals to you because it has previously been rented on Airbnb, talk to the real estate agent and make sure you have the necessary paperwork before putting in an offer.
How about potential Airbnb income? If you’re looking to purchase a property that hasn’t been used as an Airbnb but you intend to use it as an Airbnb, this potential
income can’t be included in your mortgage application. In the same way lenders won’t consider future pay rises or bonuses in an application, you can’t buy a property using potential Airbnb income either.
Why it pays to use an adviser Using Airbnb income in a mortgage application is not straightforward. Mortgage advisers understand lender requirements and can help compile the strongest application possible. An adviser can also help you understand the insurance requirements for the property. There are a range of insurance issues for renting your property such as potentially changing your insurance classification from residential to commercial. To learn more, speak to your nearest Mike Pero Mortgage Adviser today.
We try harder. “We’ll go to great lengths to sell your home for more, in less time and with lower fees.” 0800 000 525 mikepero.com
Mike Pero Real Estate Ltd. Licensed REAA (2008)
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