Optimism in Bay for building new homes

The best time to build a new house before prices rise has passed, says Hawke's Bay Registered Master Builders Association president Gordon Sanson.

But the timing is still good, with the local building industry yet to recover from a protracted slump.

"There is a good choice of land and prices are reasonably stable," he said.

"A few years ago", when new building work suddenly disappeared was the very best time, he said.

"Now guys have enough work to keep them busy - they don't have to cut costs any more."

With the contraction in the Hawke's Bay building industry some had moved to Australia or quake-ravaged Christchurch.

The value of new dwelling building consents in Hawke's Bay was up $1 million in April to $8 million from the previous month, but well down on the $12 million recorded for April 2012.

Residential building activity across the country jumped 12 per cent in the March 2013 quarter, the highest increase in 10 years, Statistics New Zealand said yesterday.

"The talk of a housing boom must be everywhere except Hawke's Bay," Mr Sanson said.

The latest figures from the REINZ's website for May show Hawke's Bay's asking price fell 1.5 per cent compared with the previous month.

New listings rose 5.2 per cent and the time properties were listed fell to 32 weeks - below the long-term average of 40 weeks.

Mr Sanson said confidence in the local industry had risen, due to the increase amount of planned work , and builders had been busy preparing quotes.

"Everyone is much more confident than last year - but it doesn't take much, does it?"