Realtors optimistic prices about to turn

The region’s median house price dropped $45,000 year-on-year. latest data from the Real Estate Institute shows, but realtors here say prices should soon be on the rise if the market follows its traditional pattern.

“In Gisborne, the median price decreased by 7.3 percent year-on-year to $575,000.” REINZ regional director Neville Falconer said.

“The number of days to sell was higher compared with a year ago, reflecting buyer anticipation of the election and concerns about interest rates and the economic climate, alongside ongoing impacts of severe weather events.

“Listings were 48.9 percent lower in Gisborne compared with the previous year — the most significant year-on-year drop in listings across the regions.”

REINZ data shows there were 33 sales last month, up from 26 the same month last year.

Ray White Gisborne director Shelley Donaldson said while traditionally winter was a slower time for sales, the region had been in a post-Covid micro-climate since 2020, where all the numbers had been skewed.

“My listing numbers for July 2022 show 174 properties on the market. Today we sit at 92 and of those, almost 75 percent is old stock (on the market for longer than current median days to sell). This represents a lack of stock coming to the market, while the number of sales shows buyer confidence and a need for more property.

“Traditionally, sellers wait until spring before they list, yet the numbers are showing that now is a great time to capitalise on the demand.

“The decrease in median sale price, I think, is a direct reflection of the lack of quality stock available. Unless sellers need to move on, they are hanging tight to see what happens over the next few months. And the incessant rain is not helping anyone be particularly motivated.”

Bayley’s Gisborne director Simon Bousfield said listings were low, but buyer numbers were very favourable.

“There’s been a notable change in the market from FOOP (fear of overpaying), towards FOMO (fear of missing out). Pre auction, pre tender and multi offers received across properties in the past few weeks have increased, which is a good sign of confidence in the market growing and sentiment held by buyers over recent months changing.

“Weather is improving, and reports on the national housing market are more positive, including showing the first meaningful lift of prices in 18 months. We have seen in the past our market tends to follow these national trends.”

Nationally, the total number of properties for sale across New Zealand was 24,676, down 6.1 percent (1595 properties) from 26,271 year-on-year, and down 7.5 percent month-on-month.

Nationally, the June 2023 median price decreased 8.2 percent  year-on-year to $780,000 from $850,000.

Property Brokers acting Gisborne branch manager Philip Searle said that was as expected.

“However, the number of sales are up 14.6 percent, which to us shows that the market has bottomed out and we are seeing a slow return to a more normal market. Nationally the median house shows no change over the past month.

“Locally, the median house price decreased by 7.3 percent which is less than the national decrease and the median days to sell have crept up to 51 which is 10 days more than the 10 year local average.

“The number of listings available in Gisborne are down but our agents are reporting a definite increase in inquiries to sell as owners are beginning to realise that we are very short of properties to sell and we have a good number of buyers in the market.

“While the market median sale price is expected to quietly increase over time, we are not expecting the substantial increases we have seen post-Covid.“The very wet summer, and now the winter Gisborne is experiencing has definitely affected the market, with many properties not showing at their best with very soggy sections etcetera. However, we are seeing more properties coming on the market with people realising that the market has stabilised.

“Overall, our team has a very positive outlook moving forward.”