February Market Comment

The Real Estate Institute of New Zealand (REINZ), the most up-to-date source of nationwide real estate data in New Zealand, announced that there were 5,048 dwelling sales in January 2016, up 4.3% on January 2015. Excluding Auckland, the number of sales compared to January 2015 increased by 14.5%.

The national median price was $448,000 for January, an increase of $22,000 or 5.2% on January 2015, but down 3.7% compared to December. Excluding the impact of the Auckland region, the national median price rose $20,250 to $361,250 compared to January 2015. Activity in the regions continues to show the influence of the halo effect with new record median prices reached in Hawke’s Bay and Taranaki with first home buyers, attracted by low interest rates which has increased their purchasing capacity, becoming more active in these regions.

“Auckland continues to show declining sales numbers, however the reasons are many and varied, including an increasing large group of potential sellers who are unable to find suitable new properties – a reflection of the very tight listings position in Auckland and increasingly tight listings across the rest of the country. The market in Wellington, appears to have taken a pause in January with a decline in sales volume and median sale price.”

For the Nelson/Marlborough region the median price rose $23,000 (+7%) and sales volume rose 6% compared to January 2015.
REINZ Chief Executive, Colleen Milne noted that “The tight listing situation across the region and continued buyer activity is turning the top of the South Island into something of a seller’s market, notwithstanding the slowdown over January; Vendor price expectations are rising as a result.”

For the wider Motueka market the summary data looks fairly normal new listings have matched the number of sale and the average sale price is around 7% above the current capital value. On a closer look at our local market demand for property in the under $450,000 price bracket is currently exceeding supply with multiple offers becoming common. I expect that we will see more no price marketing in the way of Deadline Sales, Tenders and Auctions as sellers position themselves to make the most of this market. Properties in the over $450,000 price bracket are not getting quite the same attention at present but if the market activity continues to build then we will see increased competition at all price levels.

Statistics quoted in this article are sourced in-house and from REINZ and Realestate.co.nz, while we endeavor to keep the figures as accurate as possible they cannot be guaranteed.