Aucklanders descend on local property

Aucklanders are snatching up properties in Hawke's Bay.

Auckland house buyers are "a dime a dozen" a local real estate agency principal says.

"In one day, one agent got 13 calls from buyers in Auckland. That's outrageous," Elanor MacDonald of Leaders Real Estate said.

"We thought it was an anomaly and we didn't expect it to last but it has continued, every day."

She said Auckland buyers were a combination of investors, people wanting to get into the local real estate market because they planned a future move to Hawke's Bay and people moving immediately.

"The moving group isn't all retirees. There are quite a few young families in the mix. They look for a job, get a job and then they come."

"This time last year they were few and far between and this year they are a dime a dozen. It has been a complete change," she said.

Property Brokers Hawke's Bay manager Paul Whitaker said with the Auckland market looking like it may have peaked, people were looking to diversify portfolios.

The out-of-towners were joining locals in a flurry of buying.

"We have seen a substantial lift within the last three weeks - and I mean substantial. We have seen a lot of panic buying - especially if they are good properties."

Hawke's Bay properties could be bought where rent covered mortgage payments especially now with a 4.49 per cent interest rate, he said.

Low interest rates were likely to remain long term. He predicted a big lift in official sales volumes statistics for July.

"We sold over 100 houses last month in Hawke's Bay and that's massive, because we normally do about 70.

"That is unusual for the middle of winter, so the signs are there for the market to move significantly."

Sales data is yet to reflect market lift. The QV House Price Index for the three months to July shows Napier values decreased 0.1 per cent and rose by 1.9 per cent year on year. They are now 3.1 per cent below the 2007 market peak.

Hastings values rose 1.9 per cent over the previous three months and 3.9 per cent year on year. They are now 0.7 per cent below the 2007 peak.

QV valuer Michelle Drinkrow said there appeared to be a shortage of houses in Napier and Hastings.

"There is now anecdotal evidence of out-of-town buyers interested in the upper end of the market as well [as] investors from Auckland," she said.

"Well-presented and priced homes are generating good levels of inquiry with multi-offer situations still a reasonably common occurrence."

First-home buyers remained active in the market and were taking advantage of record-low interest rates.

Tremains Real Estate managing director Simon Tremain said the market was as busy as he had seen it since 2006.

July volume was up about a third on July 2014 and it was a record month for unconditional sales in Napier and Taradale.

"There is no doubt these QV stats are still not catching up with the market," he said.

The market was getting through an excess of supply from people who had intermittently put their houses on the market since the 2007 peak but were unwilling to make a loss.

They were making a loss no longer and the number of listings was getting tight, he said.