Kaikohe the place to find cheapest homes

Kaikohe is Northland's most affordable town for property. Photo / Debbie Beadle-Taylor

Kaikohe remains Northland's most affordable town and a real estate boss says that is because it does not excite Auckland investors.

Kaikohe was the most affordable town in the region at the end of July, according to the latest QV.co.nz E-Valuer statistics, with an average value of $131,250. It was also the most affordable town in the area in June 2014, when the average value was $133,400.

Bayleys Whangarei branch manager Tony Grindle said homes became more affordable the further north or west someone went from Whangarei.

Aucklanders were moving into Whangarei and lower Northland because they wanted to remain in proximity to Auckland city.

Mr Grindle said Kaikohe was not an area which excited a lot of Auckland investors. It was different to Whangarei and the Bay of Islands and people were also leaving the town to seek work, he added.

"It's not an area that is completely desirous for people from Auckland."

For value, Mr Grindle said inner Whangarei city offered solid three-bedroom brick and mortar homes within walking distance of town, which were also good for renting.

"You're buying them for around that $300,000 mark, which in anybody's language is probably good buying."

On the other side of the market, Northland's most expensive area at the end of July was One Tree Pt, according to QV. A home there was worth an estimated $508,000. Mangawhai Heads was the most expensive to buy in June 2014, with an estimated value of $579,500.

QV national spokeswoman Andrea Rush said the most affordable homes in New Zealand tended to be in places where there was the lowest demand for housing and more than enough homes to meet supply. The quality of the housing stock and the desirability of the location were also factors.

Demand for housing could be impacted by the availability of jobs in a place at any given time. When there were fewer jobs, home values could decrease as people left an area to find work elsewhere.

"Home values in the Buller District are currently experiencing a downward trend in values due to a number of mine closures in the region.

"However, when the mining industry was booming there was a higher demand for homes and rental properties and thus home values increased during that period," Ms Rush said.

"Location can also make a difference because if homes are located with sea views, and in popular holiday destinations, values might be higher due to demand from those wanting holiday homes as well as permanent homes in location such as Pauanui on the Coromandel Peninsula or Queenstown."

People often built higher quality and larger homes in those desirable locations, which increased home values in such areas.