Uncertainty slows Gisborne's housing market

Uncertainty about who would come out on top in last week’s general election put a dampener on the real estate market, Gisborne realtors say.

Latest data from the Real Estate Institute, shows September’s median price in Gisborne fell by 3.7 percent, year-on-year, to $550,000.

“First-home buyers were the most active group in the region once again,” REINZ chief executive Jen Baird said.

“Some vendors are aware of market conditions and are adjusting their expectations, while others are still waiting for more favourable conditions. Open homes and auction rooms saw some strong activity this month.

“Anticipation of the election and low listings impacted the market for both buyers and sellers.

“Local agents report that uncertainty regarding weather conditions and property safety is also playing a role in market sentiment.”

Sales numbers were down to 31 for the month, compared with 45 in September, last year.

“Sentiments expressed by some homeowners, particularly those delaying the sale of their house until after the election, reflect a desire for change and a new direction in government policies,” Property Brokers Gisborne branch manager Mark Nicol said.

“It appears that people are not waiting for the election per se, but for the potential actions they plan to take based on the election’s outcome.

“This sentiment resonates with the broader real estate market, where median prices have seen a decline due to the sale of lower-value properties.

“This has occurred due to financial pressure on lower-income homeowners, who are making decisions primarily based on affordability. Additionally, first-time home-buyers are entering the market, but their limited budgets are reflected in the offers they are making.”