If you’re a regional homeowner, the latest key market indicators suggest now could be a good time for you to sell. With many potential buyers being priced out of main centres like Auckland, demand has heated in the regions as people start to consider it a good alternative.
In this blog, we look at new figures that show what a geographical shift in demand could mean for regional homeowners.
Want to learn how you can list your property like the pros, and ensure you make a successful sale? Check out our guide, "Top ten tips to list your property like a pro!".
Figures on the latest QV Property Report show Auckland’s recent housing explosion has subsided. Prices in our largest centre have settled at an estimated median value of $1.04 million - the wider Auckland region has seen zero growth in the last quarter to the end of July.
The approaching election is also creating uncertainty in the market with many buyers and sellers waiting to see what happens in government before they make a move.
However, with Auckland prices still remaining at double they were a decade ago many buyers are now looking to the regions, with figures showing none of Auckland’s suburbs are valued at less than $500,000.
As a result, regional house prices are seeing a hike.
Hawke’s Bay leads regional charge
In the three months to the end of July, Napier was leading this regional jump with an increase of 5.7 per cent to an estimated median house price of $449, 717. Whanganui follows close behind with a 4 per cent jump, while Whangerei climbed 3.4 per cent to $494,212.
Over 12 months to the end of July, many regions saw a percentage growth into the double digits - the Hastings District rose $70,625 (20 per cent) to a median price of $423,750.
Also notable over the same period was the South Waikato district, which saw a phenomenal 29.8 per cent increase in median house price.
This is rather remarkable when compared to the growth of the five Auckland regions across the year to July - an increase between 3.7 to 6.1 per cent.
Auckland City saw the largest growth, up $70,990 (6.1 per cent) to $1.23m. The North Shore had the slowest rate, up $42,903 (3.7 per cent) to $1.20m.
TradeMe’s head of property Nigel Jeffries talked to the New Zealand Herald about how growth in the regions was unsurprising as it typically follows growth in the main centres. However, this isn’t expected to be repeated for much longer as regional markets approach their own affordability thresholds.
QV national spokeswoman Andrea Rush said because properties were more affordable in the regions, LVR and bank lending restrictions didn’t have the same impact as a lower level of finance and deposit is required.
If you’re a regional homeowner, now might just be the time to sell and get that superb price you’ve been aiming for. Want to learn how you can list your property like the pros, and ensure you make a successful sale? Check out our brand new guide, “Top 10 tips to list your property like a pro”!