Lodge Real Estate’s managing director, Jeremy O’Rourke said today’s Real Estate Institute report confirms that upward pressure on pricing continues to be caused by a lack of housing stock in Hamilton. As a consequence a number of buyers are stretching into higher price brackets, pushing up the median house price.
Hamilton’s median house price has jumped $10K during July to $345,000.
O’Rourke said Hamilton needed around 150 per cent more quality houses on the market to keep up with buyer demand.
The total number of properties available for sale in Hamilton on realestate.co.nz fell a further five per cent during July as the 252 sales for the month outpaced properties listed.
“Winter is generally always slower, but this season the number of houses coming onto the market has been even less than normal. We are also experiencing an increase in buyer urgency and a lot more competition for quality houses in highly desirable suburbs.”
He said Hillcrest and Rototuna are the two most sought after suburbs in Hamilton. For instance properties were selling in Rototuna, on average, within 23 days of listing compared with the city average of 35 days.
The median house price sale in Hillcrest in July was on par with the city’s median at $345,000 – up from $312,500 in July last year. The average sale price in Rototuna last month was $475,000 compared with $447,500 a year earlier.
O’Rourke said that unlike Auckland’s market where housing affordability had peaked, Hamilton’s house prices had the capacity to increase, and Lodge was seeing buyer competition and confidence pushing up prices in the higher end of the market.
He said buyer competition meant many vendors were still choosing to sell at auction, with an average of around 20 per cent of sales in Hamilton through auctions, compared with 38 per cent in Auckland.
“Lodge listed 42 properties to sell at auction in July, and 50 per cent of them sold on the day. In the last week of July, we sold five out of five properties on auction day.”
He said the first home and investor markets continued to be strong in Hamilton in the $320,000 or less price bracket, with interest in the Forest Lake area remaining particularly strong among first home buyers.