'Tide turning' on hot Hawke's Bay property market

Record asking prices are still being fetched in Hawke's Bay. Photo NZME

Data from a new report shows "the tables are turning" on Hawke's Bay's hot property market.

However, real-time findings from realestate.co.nz also show record asking prices have been recorded for the region.

Spokesperson Vanessa Williams said the data released on Monday showed that while there is still plenty of demand from buyers, the heat has come out of the market.

"We have become accustomed to urgency in the market with multi-offers and high competition being the norm," she said.

"Right now, however, buyers have more time to do their due diligence and make an educated decision on their future property," Williams said.

While Auckland and Wellington tended to lead property trends, she said it would be interesting to see whether buyers' markets emerge in other regions over the coming months.

In April, Hawke's Bay joined Otago and Manawatu/Whanganui in exhibiting signs of moving into buyers' markets.

"Anecdotally, we hear from real estate agents that although there is still demand for property nationwide, things have slowed in many markets."

Despite this, Hawke's Bay was among eight of 19 regions to hit all-time asking price highs last month. Fifteen-year record average asking prices were also seen in Gisborne, Otago, Southland, Coromandel, Central Otago / Lakes District and Wairarapa.

The region's 2022 average asking price of $873,906 in March leapt to $901,224 in April.

Meanwhile, property stock is up year-on-year by 70.8 per cent nationally and in all regions, providing "more choices for buyers". Hawke's Bay's stock levels were up 144.2 per cent year-on-year.

Williams said while there is still plenty of demand from buyers, the heat has come out of the market.

Just 172 homes sold across Hawke's Bay in March, the lowest sales since 2008 when 164 homes sold, according to the Real Estate Institute of New Zealand.

Last month REINZ chief executive Jen Baird said there was a shift in Hawke's Bay, with lower demand and a high supply of homes for sale.

"Hawke's Bay is seeing a tip in the scales between supply and demand," she said. "With buyer demand subdued, March saw the median days to sell increase."

Quotable Value registered valuer Damien Hall earlier said the Hawke's Bay housing market had "plateaued".

"We're seeing an increased number of listings across the board, but activity has completely slowed across the lower-to-mid end of the market, largely due to banks' continued tight lending and increased interest rates.

"The upper quartile is still showing some positives with cash buyers present, but overall prices have decreased slightly across the board."