Hawke’s Bay bucks the downward trend in number of house sales
The number of houses sold across the country last month was down significantly on volumes a year ago – but that downward trend was not evident in Hawke’s Bay.
The Real Estate Institute of New Zealand (REINZ) says the number of residential properties sold in February fell by 9.5% from the same time last year to 5,954 (down from 6,576).
But Hawke’s Bay was one of only three regions – along with Marlborough and Southland – where there was an annual increase in sales volumes last month.
The Bay’s increase in sales was very small: it rose from 231 houses sold in February last year to 232 sold last month.
Bindi Norwell, Chief Executive at REINZ says, at a time when sales volumes are normally strong, 13 out of 16 regions across the country saw an annual fall in the number of properties sold.
"The lower level 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,” she says.
"What we’re hearing from salespeople around the country is that vendors and investors are taking a ‘wait and see’ approach to the housing market – much like you would normally see around election time. This is particularly true in relation to the recently announced Capital Gains Tax proposals from the Tax Working Group. Families want to know what aspects of the proposals the Government will look at accept ahead of next year’s election and what impact that will have on them and their family."
Despite volume falls nationally, median house prices keep rising and Hawke’s Bay was one of five regions to see record median house prices last month.
Median house prices across New Zealand increased by 5.7% in February to $560,000, up from $530,000 in February 2018.
In Hawke’s Bay the median price was up 6.4% to $472,500 (from $444,000 at the same time last year).
The other region to achieve record medium prices were Gisborne, Manawatu/Wanganui, Southland and Wellington.
"February saw 15 out of 16 regions experience an annual increase in the median price, with five regions seeing record median house prices highlighting the strength of the housing market around much of the country,” says Norwell.
“With house prices continuing to rise at such a pace, this puts even more of a dampener on any notions of New Zealand following in Australia’s footsteps in the short to medium term. Even Auckland saw an increase from January, showing it has returned to the same, stable or flat market we’ve been seeing since April 2017," points out Norwell.
