Slim pickings for home buyers in Hawke's Bay

SELLING FAST: Recent REINZ figures show February's residential real estate sales volumes in Dannevirke have risen 54 per cent compared to January. Photo/Duncan Brown.

Sales in Hawke's Bay slowing down however the average sale price is picking up, according to the latest Real Estate Institute of New Zealand (REINZ) figures.

While sales volumes this February have risen by 33 per cent on January, compared to sales volumes in February last year the volume has fallen 18 per cent with with sales rising in Dannevirke and Hawke's Bay Country but falling across the rest of the region.

Ray White managing director Elanor MacDonald said the latest REINZ figures match was she has seen over the past few months, with sales slowing down and the average sale price picking up.

"We've got a lot of people coming from out of town putting pressure on sales and the rental market," she said.

Ms MacDonald also noted there had been a considerable increase in sales of houses in the "top end" of the market, with prices between $1 and $1.5 million dollars not uncommon.

"A couple of years ago you would have been lucky to have that but now it is almost a daily thing," she said.

REINZ figures show the median house price rose $20,000 (plus 6 per cent) compared to February 2016 with prices rising 51 per cent in Dannevirke, 34 per cent in Hawke's Bay Country, and 16 per cent in Napier.

On top of this the lower end of the market seems to have "vanished" with very few properties on the market for under $200,000.

With a drop of 28 per cent over the past year Hawke's Bay currently has the second lowest level of inventory in New Zealand.

Tremains Real Estate managing director Simon Tremain said he thought the REINZ figures were back on what he anticipated they would be, however he noted February's statistics could be put down to the market "taking a breather".

"The market seems to just be checking itself at these levels...but there are all the right reasons for things to pick up next month," he said.

With New Zealand's high net migration levels Mr Tremain said the Hawke's Bay lifestyle with great weather and minimal traffic made for a great destination to live.

"Naturally we're going to get a drain down to Hawke's Bay."

REINZ Chief Executive Bindi Norwell said real estate agents have indicated there are plenty of first home buyers in the market, although stock levels are down on the same time last year.

"Buyers are active in all markets but there is not enough housing across the board. The average price is creeping up compared to valuations. Listings are tight with no sign of easing," she said.