September 2023
Executive, first-home buyers keep Hamilton housing market moving while middle is absent
Lodge Real Estate managing director Jeremy O’Rourke, says first-home and executive-level buyers are the current active players in Hamilton’s residential property market, with the remaining group in the middle holding tight for now.
“We’re seeing homes up to the $650,000 price mark getting snapped up quickly in Hamilton by first-home buyers, and homes up and above $1.5 million selling well. But we’re not seeing much movement in that middle area of properties just above and below $1 million,” he says.
“There’s money out there for the right property in either of those two levels, a recent example being a Hamilton East listing that sold in excess of $2 million in competition with six offers, the top two being cash.”
Interest remains low in the $1 million price-point as stock remains constrained and buyers in that price bracket likely waiting to see how the election results unfold before deciding on their next move, Jeremy says.
“We’re still not seeing any real urgency in the market. Buyers are thinking ‘if I see a good property at the right price, I’ll buy it’, but there isn’t the level of FOMO we were seeing this time last year. That’s likely because that middle group of buyers will be most affected by the election outcome and economic policy, so it makes sense for them to wait and see a little bit longer.”
Jeremy says the intent in the market, which Lodge agents have felt for several months, remains constant and could result in a flurry of activity post-election.
“Our agents are saying they’re doing record numbers of appraisals for vendors, but there is the sense that the market is poised at the ready, and waiting to see what will happen in the economy in the next few months before taking action with listing and buying.”
Business activity may also impact future action in the residential market, Jeremy says, as businesses decide whether to expand or consolidate based on the election outcome.
“This election period has been an interesting one. During my time in real estate, I’ve experienced eight election cycles. And from my experience elections are a distraction in the property market and you might see reduced activity in the lead up to one. However, this time around is very different. Home buyers will be making some big decision off the back of the outcome of this election, and, because of that, the stakes feel higher.”
He says business decisions will directly impact the residential market – if businesses consolidate, there could be layoffs and belt tightening, if they expand, buyers will act if they feel a sense of economic security.
