Lodge Real Estate reported today that the number of homes sold in Hamilton, as reported by the REINZ, during May – 301 – was the highest on record since March 2007.
“The housing market in Hamilton is especially buoyant. In fact, we haven’t seen this many homes sold in one month since March 2007,” said Managing Director, Jeremy O’Rourke.
“The issue, however, is that sales are outpacing the number of homes we are listing to replenish stock. With 301 sold last month, we believe only 310 were listed.
“In fact, inventory in the market fell five percent between the end of February and the end of April. It shed a further ten percent during May alone. Plus, this phenomenon is being exacerbated by the normal trend of fewer homes coming on the market during winter months.
“We continue to have a lot of keen buyers looking for quality homes, which are being bought up quickly. What all of this means is the lack of stock coupled with strong buyer demand is putting upward pressure on Hamilton’s house prices,” Mr O’Rourke explained.
He added that the current market situation has been good for sellers who have had their homes on the market for several months, as older stock is starting to move.
Hamilton’s median house price was up on last month’s median to $330,600 for May. This compares to $325,000 in April 2013 and $335,000 in May 2012.
Mr O’Rourke said economic forecasts indicate strong house sales are likely to continue in many areas throughout the country and Hamilton should be no exception.
“The latest ANZ Market Focus report points toward increased skilled migrants moving to New Zealand from Australia, the UK, the US and Asia. And along with those migrants comes the need for housing.
“Hamilton’s strong economic base and more affordable prices, as compared to Auckland, are drawcards for skilled people looking for jobs. If forecasts hold true, we expect the rising migrant numbers should help keep the city’s housing market on a positive trend for some time to come,” he said.
Mr O’Rourke said the key message for potential buyers is to get in the market now to beat price rises. While his message to potential sellers is that homes are selling quickly and it’s a great time to list.