A view over housing in Napier. Photo / Warren Buckland
A view over housing in Napier. Photo / Warren Buckland
There are roughly 500 more homes up for sale in Hawke's Bay than a year ago, as low house sales are clogging up the housing market.
According to the Real Estate Institute of NZ's (REINZ) latest housing report, released on Wednesday, there were almost 800 houses on the market inHawke's Bay in June.
That was up from 319 homes up for sale in June 2021 - an increase of 150 per cent.
A local real estate agent says that high inventory is largely down to houses taking longer to sell and a flow of new homes coming onto the market, as opposed to a flurry of people selling up.
REINZ CEO Jen Baird said some vendors were pulling their homes off the market after failing to sell their places for a price they wanted.
"Some vendors are deciding to withdraw from the market where they are unable to achieve their price expectations," she said, of Hawke's Bay.
"[But] as we head into spring, market activity is expected to pick up again."
Rising interest rates combined with tougher lending restrictions for mortgages has led to a big shake-up to the housing market this year, in Hawke's Bay and across the country.
Average house prices have fallen from peak prices recorded in November 2021, and the number of homes being sold each month has also plummeted.
Just 126 homes sold across Hawke's Bay in June, the lowest June sales count since 2008.
Houses are staying on the market much longer before selling. Graph up to date to June 2022. Photo / REINZ
REINZ reports that the average house sale price in Hawke's Bay ($690,000) is now lower than it was a year ago ($700,000) - a far cry from recent years where house prices increased at a staggering rate year on year.
Tremains' General Manager for the Central Region, Stuart Christensen, said following two years of "frenzy" real estate, the market had "returned to normal".
He said the reason there were a lot more homes on the market was due to longer times to sell.
"This time last year you would get the properties come on the market and, because they would be sold in the first 30 days, there would be fresh stock coming onto the market to replace it.
"What is happening now is you are getting fresh stock coming onto the market, but it is just going on top of what was listed last month, and the month before, and the month before that."
He said it was "getting back to a buyer's market" with more homes on the market than there was demand.
He said he was seeing homes sell on month three or four, and it was "a patient game" for many sellers.
Number of house sales by month in Hawke's Bay June 2022 - 126 May 2022 - 193 Apr 2022 - 127 Mar 2022 - 173 Feb 2022 - 168 Jan 2022 - 124 Dec 2021 - 214 Nov 2021 - 260 Oct 2021 - 241 Sept 2021 - 207 Aug 2021 - 151 July 2021 - 208 June 2021 - 189 May 2021 - 236 April 2021 - 209 Mar 2021 - 255 Feb 2021 - 226 Jan 2021 - 121 Dec 2020 - 255 Nov 2020 - 271 Oct 2020 - 275 Sept 2020 - 263 Aug 2020 - 255 July 2020 - 282 June 2020 - 243
