Sold! Hawke's Bay property market's boom continues as houses snapped up

2020 is continuing in its trend of being an anomaly for the Hawke's Bay property market. Photo / File

The number of properties sold in Hawke's Bay for the month of September was the highest for the month since 2006, statistics reveal.

According to Reinz statistics, the region had a median house price of $585,000 in September, up 17.0 per cent from September 2019, and sales volumes increased 21.2 per cent from the same time last year to 263 properties sold – the highest number in a September month since 2006.

Owen Vaughan, editor of NZME-owned property site OneRoof, said: "Why is the market super-charged at the moment? The momentum has been building since the country came out of the first lockdown in May, but sales activity is reaching levels not seen since the last boom - and it's hard to see the foot coming off the accelerator any time soon.

"The majority of Kiwis who have decided to sell have reaped the huge benefits of low interest rates and intense buyer demand post Covid-19. But agents frequently tell us there is still not enough stock to meet the needs of the market."

Tremains Real Estate Hawke's Bay regional manager Stuart Christensen has been seeing packed out auctions and houses going for way more than expected.

"We've seen so many properties where there are competing buyers," he said.

"People are really having to put their best foot forward if they're going to be considered."

Christensen said he thinks the trend will hold over the next few months as well:

"People want to go on holiday knowing that they've already secured their house or moved into their house before Christmas."

Bindi Norwell, Reinz chief executive, said the positive growth in Hawke's Bay's property market was due to a number of factors.

"Normally one month out from an election, people start to take a wait and see approach and sales volumes begin easing off," she said.

"However, 2020 appears to continue in its trend of being an anomaly, with the number of properties sold the highest in 42 months, since March 2017, when the country was last experiencing such growth.

"In Hawke's Bay, first time buyers have become more active in the market.

"Much of this activity is being driven by the extremely low rates at which people can borrow money, which is at its lowest levels since records began, consumers having additional 'cash' available due to a lack of international travel and some uplift from returning expats.

A snapshot of number of properties sold in Hawke's Bay. Photo / Supplied

"When you then add in high levels of confidence in the housing market, the removal of the LVRs back in March and people's fear that prices are just going to keep increasing in the future, then this explains why people are going to such lengths to secure a property now."

Property listings in Hawke's Bay decreased -8.0 per cent, bringing the region to its lowest level of inventory since July 2019.

The housing price index [HPI], which measures the changing value of property in the market, for the Gisborne/Hawke's Bay region saw the largest annual percentage increase at 15.8 per cent to a record 3350.