Lodge Real Estate’s managing director, Jeremy O’Rourke, said today that a significant increase in the number of first home buyers entering the Hamilton residential housing market is the primary factor contributing to the median dropping to $346,500 in August from $350,000 in July.
“The slight dip in Hamilton’s median house price this month is not a signal that values are slipping. It’s simply that the median has shifted because there were more buyers at the lower end of the market this month – primarily first home buyers and investors,” explained Mr O’Rourke.
He said Pukete, Dinsdale and Forest Lake currently represented the best suburbs for first home buyers and investors to get the best value for money.
He also said prices are shifting noticeably upward in Hillcrest, Hamilton East, Rototuna and on the city fringe.
August housing market figures were released today by the Real Estate Institute of New Zealand (REINZ) and show the number of homes sold in Hamilton stayed around the same level, with 196 homes sold in August compared to 201 in July.
“We often see increased activity as spring arrives and we have started September with a greater number of appraisals and more stock being listed. There definitely is increased demand in the market and we need more quality stock to satisfy it,” said Mr O’Rourke.
New homes listed on the Hamilton market during the month of August were up slightly to 283, from 225 in July. Although this was a 3% decrease on August 2013 July and June were 22% and 35% down respectively from same month in 2013.
The total number of homes for sale in Hamilton has been decreasing from month to month, with 977 properties on the market in May, 917 in June, 833 in July and 883 in August.