House sales have declined in Hawke's Bay. Pictured is Havelock North. Photo / Paul Taylor
House sales have declined in Hawke's Bay. Pictured is Havelock North. Photo / Paul Taylor
Record rises in house prices have come to a halt in Hawke's Bay as the number of homes being sold across the region reached an 11-year low during February.
Just 168 homes sold in Hawke's Bay last month which was the lowest February month since 2011 (when 164 homes sold),according to REINZ.
Comparatively, 226 homes sold in February 2021 and 265 sold in February 2020.
An expert says February to April are traditionally strong months for property sales across Hawke's Bay and the latest data shows "the market has changed" in the region, following several years favouring sellers.
The Real Estate Institute of New Zealand (REINZ) released its latest report this week which includes comprehensive data on last month's house sales.
The data shows median house prices fell slightly in December and January in Hawke's Bay but recovered with a slight increase last month.
Year on year, that means there has been an 18.7 per cent increase on average house prices in Hawke's Bay from February 2021 to February 2022, and that upward trend has been halted in the past three months.
While a longer period will give a clearer indication of house price trends, an ANZ report predicted this week that house prices could fall 10 per cent nationally this year.
According to REINZ, the median house price in Hawke's Bay is now $812,000.
A graph showing the rise in average house prices in Hawke's Bay including a dip in recent months. Photo / REINZ
Another indicator of the changing real estate market has been the amount of time it is taking to sell homes.
In Hawke's Bay, the median days to sell a home blew out to 50 for February 2022, the longest wait time since May 2015 (not including the nationwide lockdown in April 2020).
"More choice in the market has eased the sense of urgency among buyers, and properties are spending longer on the market," Jen Baird, the REINZ CEO, said.
There are currently more than 600 homes for sale in the region, almost double the number a year ago.
Sotheby's International Realty managing director central region Fraser Holland said "the market has changed".
He said properties which were unique and special in some way in regard to location or the attributes they offer - such as north facing on Bluff Hill with a view - those properties were selling well and attracting good prices.
However, he said other homes were not selling as well.
"Far more of the mainstream market that is, let's say, 'if I don't buy this home today there will be another one that comes on in the coming months' there is not that fear of missing out [for buyers].
"So you have homes that are staying on the market longer because there is a gap between vendor expectation and purchasers willing to buy."
He said it was also heightened at the moment because of Omicron, and people being unsure about the future.
"The world is so topsy-turvy at the moment that I think most people are considering the future a little bit more carefully," he said.
"People are very cautious about what they are spending and what they are doing."
The real estate market is changing rapidly. Pictured is housing in Taradale, Napier. Photo / Paul Taylor
He did not go as far as calling the current market a "buyer's market" and said it differed for different properties.
Other factors which have had a big impact on the real estate market include tougher restrictions to borrow money and higher interest rates, which has stopped many people including first-home buyers from being able to buy.
Holland said if the war in Ukraine were to spread and impact wider parts of Europe, it would likely see an increase in Kiwis leaving Europe to move to New Zealand, which could have an impact on the real estate market.
Number of residential property sales my month in Hawke's Bay
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 May 2020 - 160 April 2020 - 41 (country in level 4 lockdown) March 2020 - 238 February 2020 - 265
