Steady increases for HB house values even as market becomes less heated

House values across Hawke's Bay continue to rise, according to figures released in the latest QV House Price Index.

Although the average Hastings house value is still less than Napier, growth is strong, up 20.4 per cent year on year and 27.9 per cent higher than the 2007 market peak, the latest QV House Price Index for March shows.

Released yesterday, the average value of a house in Hastings had reached $398,612, up 3 per cent over the past three months.

In Napier, the average value in the city was $422,945, up 17.9 per cent year on year, and 1.9 per cent over the past three months, taking it 24.3 per cent above the previous peak of 2007.

QV homevalue Hawke's Bay registered valuer Michelle Drinkrow said the Hawke's Bay housing market was continuing to attract plenty of interest, with good sale prices seen, but some of the heat had come out of the market with less frenzied buying.

"The odd property is passing in at auction or staying on the market for longer than expected, but this could be due to unreasonable vendor price expectations who are still holding out for big money."

She said there were very few vacant sections currently available, however several new developments understood to be in the pipeline across the region should help with the current high demand.

Ray White managing director Elanor MacDonald said the shortage of houses to buy was an issue in both of the main centres, with Hawke's Bay in general sitting at only 10 weeks worth of stock available.

The main lack of availability was in the mid-range value between $300,000 and $450,000, but she said across the board they were still getting multiple offers on properties.

The indications that Napier house values were not increasing as much as Hastings was probably due to low listing levels - the lowest they had been, she said.

"Having said that I have seen record prices being achieved in both cities for properties of all different values - there's no trend showing that certain price brackets are more sought after than others."

Ms Drinkrow said that in response to the shortage of stock, a few buyers were now moving out of the main centres.

"They're going to more rural locations and commuting into town for work in search of lifestyle or more bang for their buck."

Property Brokers Waipukurau sales manager Jane Hamilton said they were seeing exactly that in Central Hawke's Bay, where there was a 50/50 split of locals and out-of-towners buying properties.

"There are lots of people from Hastings and Napier moving here - the March sales volumes were through the roof, we just can't get enough stock which is a bit worrying for the long-term when we are faced with running out."

A positive was the increased numbers of first-home buyers, using their KiwiSaver to give them a kick-start into the market, she said.

"The investors are not here in the volume that they were."

Overall, with multiple buyers looking at properties, there had been an enormous increase in selling prices achieved, she added.

In Central Hawke's Bay the average house price continued to increase in March, up 3.8 per cent on three months ago to $260,446, but still down 1.7 per cent on 2007's peak.

At an average of $170,426, Wairoa house values had increased 16.6 per cent year on year, but were still well below (30.4 per cent) what they were in 2007.