A view over Napier properties. Photo / Paul Taylor
House sales slowed down across Hawke's Bay during January despite a big rise in the number of properties hitting the market, according to the latest real estate figures.
One real estate expert says Hawke's Bay is "definitely not in a seller's market anymore" and called the current market "balanced" following years of it favouring sellers.
The region has experienced record rises in house prices over the past few years but figures released by the Real Estate Institute of New Zealand (REINZ) today suggest a big change is happening to the market.
There was a significant drop in the number of homes sold in Hawke's Bay in January (124 properties) compared to December (214) and November (260).
Traditionally January is a slower month for real estate sales and any drop in house sales for the region will be better reflected in data for February and March.
However, the latest figures also showed there were more properties for sale in January 2022 (528 properties) across Hawke's Bay compared to January 2021 (298 properties) - a rise of 77 per cent.
The average amount of time it took for homes to sell increased to 42 days in January 2022 compared to 28 days in January 2021.
"There has been less buyer activity but more listings [in Hawke's Bay] — this is unusual for a January month where we would expect to see the inverse," REINZ CEO Jen Baird said.
Baird said it meant buyers had less pressure to move quickly but she stopped short of calling it a buyer's market.
"There is less pressure on buyers to move really quickly than there was earlier, but part of that is potentially changes that we have seen that have made it a little bit more difficult and take a little bit longer for people to get their financial ducks in a row.
"In particular, that includes the changes to the CCCFA [Credit Contracts and Consumer
Finance Act] in December."
Those lending changes have made it tougher for potential buyers, particularly first home buyers, to secure mortgages which has resulted in fewer buyers in the market.
"Feedback from agents across the country suggests a decrease in the number of first home buyers and investors in the market, noting quieter auction rooms and open homes."
Tremains general manager central region Stuart Christensen said the market was changing quite rapidly.
"We are definitely not in a seller's market anymore, we have had 24 months of very good momentum for the sellers.
"It is definitely in a balanced market [at present]," he said.
"Would I say a buyer's market? I would say it is heading that way."
He said it was interesting to see more people making offers on homes with a condition of selling their own house.
"Last year, there was definitely that feeling of if I put my home on the market, what am I going to buy because there is not much stock," he said.
"I think there is more on the market now because people have more confidence, so you have got people that perhaps have been holding back a little bit.
"They have held onto their home as the market has gone up but now it is like 'I can go out and shop and there is a little bit more there'."
He said it was still a good time to sell your property.
While the REINZ figures showed a small dip in median house prices for the month of January, that can be quite normal and it will take longer to see the effects on the deceleration of house prices.
According to REINZ, the median house price in the region is $785,000, while Napier has hit a high of $870,000.
NUMBER OF RESIDENTIAL PROPERTY SALES BY MONTH IN HAWKE'S BAY
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
January 2020 - 194