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 the strongest HPI growth of all regions over the past three months.
O
ur seasonally adjusted results tell us that, compared to what we expect when moving from January to February, the observed increase in median price was larger than expected and the observed large decrease in sales count was fractionally less than expected. The current Days to Sell of 34 days is much less than the 10-year average for February which is 45 days. The level of inventory available for sale currently sits at nine weeks, Compared to Feb 2018: • Median Price up 6.4% • Sales Count up 0.4% • Days to Sell increased by 5 days Compared to Jan 2019: • Median Price up 5.0% • Seasonally adjusted median price up 3.4% • Sales Count up 26.8% • Seasonally adjusted sales count down 0.2% • Days to Sell decreased by 3 days.
two weeks more than in February 2018. Bindi Norwell, REINZ CEO, says ““The Hawke’s Bay region saw a record median price in February of $472,500 and was one of only three regions across the country to see an increase in price and sales volumes. Prices achieved in the Wairoa District were down 49.6% on the same time last year, the lowest price seen for the area since June 2018. Demand across the region is still
strong, though the new listing numbers didn’t increase as was expected in February. Vendors’ expectations were down slightly. First home buyers and investors are being slightly more active, and we think that this will be more visible in the coming month or so.”
Median Sale Price for February 2019 Hastings District Waipukurau Clive Napier Havelock North
$468,200 $320,000 $630,000 $510,000 $777,000
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 forFebruary 2019
FEBRUARY 2018-2019
Number of houses sold across NZ falls by 9.5% in February, says REINZ. “At a time when sales volumes are normally strong, when we look across the country, 13 out of 16 regions actually saw an annual fall in the number of properties sold. The lower levels of sales volumes compared to the same time last year can be attributed to a number of things - the raft of legislative changes impacting the housing market at the moment, the increasing difficulty in accessing finance (despite a record low OCR and very low mortgage rates from the banks) and vendors’ pricing expectations” says REINZ Chief Executive, Bindi Norwell. Median house prices were recorded as follows: Northland
$500,500
Auckland
$850,000
Waikato
$530,000
Bay of Plenty
$588,000
Gisborne
$390,000
Hawke’s Bay
$472,500
Increased
Manawatu/Wanganui
$352,000
Stable
Taranaki
$380,000
Decreased
Wellington
$640,000
Tasman
$580,000
Nelson
$560,000
Marlborough
$438,500
West Coast
$190,000
Record Median Sales
REINZ House Price Index (HPI) - increases 3.2% annually The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.2% year-on-year to a new record high of 2,778.
Canterbury
$452,500
The HPI for New Zealand excluding Auckland increased 8.1% from February 2018 to a new record high of 2,728. The Auckland HPI decreased -2.0% year-on-year to 2,838.
Otago
$455,000
The REINZ HPI saw 8 out of 12 regions experience a record high level over the past 12 months, highlighting the overall continued strength of the property market. The exceptions were Northland, Auckland, Otago and Southland.
Southland
$290,000
NZ excluding Auckland
$490,000
NEW ZEALAND
$560,000
In February the Manawatu/Wanganui region again had the highest annual growth rate, a 19.4% increase to a new record high of 2,984, followed by Gisborne/Hawke’s Bay in second place with an annual growth rate of 13.8% to a new record high of 2,762 and in third place was Southland with a 12.6% annual increase to 2,797 – down -1.8% from its peak in January 2019.
The REINZ House Price Index shows: New Zealand
+3.2% on Feb 2018
Days to Sell continues to hover close to 50
NZ ex Auckland
+8.1% on Feb 2018
In February the median number of days to sell a property increased by 3 days from 44 to 47 when compared to February last year.
Auckland
-2.0% on Feb 2018
New Zealand
+1.6% on Jan 2019
NZ ex Auckland
+1.6% on Jan 2019
Auckland
+1.7% on Jan 2019
For New Zealand excluding Auckland, the median days to sell increased by 1 day to 43. However, Auckland saw the median number of days to sell a property increase by 8 days from 49 to 57 – the highest number of days to sell since February 2009. Manawatu/Wanganui had the lowest days to sell of all regions at 30 days, down 10 days from 40 at the same time last year. The West Coast always has the highest days to sell of any region (at 91 days in February 2019), but the median number of days to sell in Northland has reached a high of 61 days – the highest in since August 2015. “With vendors holding out to achieve their price expectations, it’s little surprise that the median number of days to sell has slowly been increasing over the last few months. What was interesting though is that this is the first non-January month since February 2017 that no region had median number of days to sell in the 20s,” says Norwell.
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For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
Should you buy into Shared Equity Schemes? Shared equity schemes help you get onto the property ladder - but you must know a few things.
A shared equity scheme is soon to be trialled for first home buyers looking to buy new-build houses in Auckland. If successful, the lender offering the scheme intends to expand nationwide, so here is an overview of how they are expected to work.
What is a shared equity scheme? Shared equity schemes allow home buyers to purchase property with a smaller deposit by sharing some of the purchase cost with a shared equity partner. For example, if a buyer has a 10% deposit, a shared equity partner can contribute an additional 10%, while a standard mortgage covers the remaining 80% of the purchase price.
Who will the shared equity partner be? The partner is yet to be named, however shared equity partners could possibly range from private investors, not-for-profits, or even the government.
What’s the catch? Shared equity schemes are not always straightforward, so you should understand the terms of the deal and read the fine print. A few things to consider include: • The shared equity scheme could have a monthly fee which would add to outgoings. • If the property is sold, the shared equity partner would receive a share of any increase in the property value. • An ownership agreement sets out every-
one’s rights which may include the shared equity partner’s ability to sell the property if the buyer experiences financial hardship.
What should you do? Participating in a shared equity scheme needs careful consideration. If you have a low deposit and want to buy property, talk to a Mike Pero Adviser to understand all your options. With the Reserve Bank recently relaxing deposit requirements, first homebuyers have more options than before. Mike Pero Advisers have access to a range of lenders that accept low, gifted and even borrowed deposits. For good advice, reach out to a Mike Pero 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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AKINA, HASTINGS A SOLID DECISION If you are looking for the perfect brick family home, then look no more. This home has everything for couples, young families or investors. Offering comfortable and practical living, the single level layout is well-proportioned throughout: Featuring: - Three double bedrooms - Open plan living/dining & kitchen - Modern bathroom & separate toilet - Substantial decking for outdoor entertaining. - Stand alone double garage, extra off street parking - Secure fully fenced, low maintenance section This extremely well presented property is a short distance to the heart of Hastings town centre and to all grades of schooling. Now is the time to call and see for yourself what this affordable home has to offer. RX1819906
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