16 Nov Hibiscus Coast Market Update – October 2018
Hibiscus Coast at a glance
Sales Volume – 98 October 2018, up from 81 in September 2018
Median Sale Price – $815,000 in October 2018, down from $875,000 in September 2018
Average days on Market – 47 in October 2018, steady from 48 in September 2018
Real Estate market springs back into action in October
Previously low levels of new listings in July meant a quiet start to Spring with the number of houses sold in New Zealand in September down by -0.3% since September 2017, however as predicted for October, the volume of sales increased nationally 15.5% year on year – a steady uplift from a slow start to spring.
This is the highest volume of sales for the month of October for 2 years and in real terms is the equivalent of an extra 29 houses being sold per day nationally across the month. In Auckland, an increase of 257 properties sold, and increase of 15.2% from 1,691 in Oct 2017 to 1,948 in October 2018. With such strong sales this month, it appears that the property market in New Zealand is tracking quite differently to what is being seen across the Tasman right now.
The ban on foreign buyers purchasing property came into effect in October, and some believe that there may have been a rush ahead of the ban. However Statistics New Zealand data for the quarter shows the lowest level of foreign buyers since they began keeping records, so rather than a rush for foreign buyers trying to get in before the ban, we can be reasonably confident that the uplift for October is due to a cyclical lift for spring.
For the Hibiscus Coast specifically, in terms of sales volume October saw 98 property sales, slightly down from 104 in October 2017, but an increase from September 2018 (81).
Across the country prices continue to hold up with the price for residential homes reaching a record of $562,000 in October – up 6% on the same time last year. Similarly for Auckland, the median price set in October of $865,000 is the highest median price for Auckland in 7 months, and an increase of 1.8% year on year. Driving these prices is the continued constraint on supply – until the fundamental housing supply issues are addressed, we can expect to see record house prices continuing across the country, and Aucklanders will continue to move out of the city for lifestyle and improved afforability.
Median house prices on the Hibiscus Coast have dipped slightly from the same period last year, from $840,000 in October 2017 to $815,000 in October 2018, however largely properties continue to hold their value.
Source: REINZ Monthly Property Report – 14 November 2018
If you would like to know how changes in the market may impact your property, please contact us for a chat.