The table below graphically illustrates the market’s demise:
|End of Nov 09||End of Nov 10||Movement|
|Median Days to Sell||33||49||+16 days|
|Estimated properties for sale||1155||1338||16%|
|Top 3 suburbs by volume||Rototuna
|# of mortgagee sales||97||65||33%|
Although for much of 2010 we witnessed market conditions deteriorate October was the bottom. Since then we have seen a strong recovery in November followed by solid sales activity during December.
Our outlook for 2011 is for volumes to continue increasing throughout the year. Our reasoning is based on the following;
- Hamilton’s population has maintained its growth up 1.7% for the year.
- Rental demand for accommodation is consistent with some sectors lacking properties to rent. As tenants become frustrated with the lack of choice they can often turn their attention to purchasing.
- Business activity has lifted and Hamilton businesses are producing good wins. A prime example being WEL Networks $300 million broadband build contract.
- Providing the rain outside my window continues farmers will benefit from an increase of 30c per kg of milk solids taking the payout into the region of $730 – $7.40 before retentions.
- Finally, the rugby world cup will add stimulus to the entire country. However, it could also attract immigration as scores of northern hemisphere tourists sample our unique lifestyle first hand.