One month difference: Hawke's Bay's median property price has increased again

The average median property price in Napier fell by $35,000 between January and February, but is still $135,000 more expensive than a year ago. Photo / Warren Buckland

The average median property price throughout Hawke's Bay increased by 2.7 per cent between January and February, but year-on-year the region has the highest nationwide increase.

According to the latest Real Estate Institute of New Zealand (REINZ) report, the median price rose by $12,000 within the month .

The jump means buyers would need to have saved an additional $2400 on top of the average January deposit for a median priced property.

A REINZ spokeswoman said Hawke's Bay has seen the highest increase in median house prices year-on-year across New Zealand.

Sotheby's International Realty Hawke's Bay managing director Fraser Holland said buying homes in the region is a hard task for all types of buyers.

"The back-end of 2020 saw some aggressive acceleration of value at all price levels," he said.

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However, Holland said the increase in deposits is primarily an issue for first home buyers.

"There's no doubt that the first step onto the property ladder is getting more and more difficult in Hawke's Bay," Holland said.

"Everyone else is using the equity in their existing properties to go up the chain."

He said that more people than ever are depending on their parents to help them buy their first home.

"We're also seeing young couples pooling their equity to buy one home and get on the ladder, which is a terrific thing to do if you can," Holland added.

Hastings hit a new high in February, recording a median average property price of $772,300 – an increase of $192,300 within the month.

But not all areas increased from January's statistics.

Wairoa's median property price fell by over $300,000 due to fewer property sales and types in the area, according to REINZ.

The Central Hawke's Bay district median price fell by $152,000 in the second month of the year but had 11 more sales than January. Napier's median value also fell (-$35,000).

In February 2020, 116 properties were sold in Napier compared to 94 in February 2021.

Across the entire region, 50 less properties sold in February (206), compared to last year (256).

Holland said despite the drop off in sales, the values continue to rise.

"Those volumes of sales are still significant; the median price point and its increase are still significant," he said.

"Despite volumes dropping you've still got a very sizeable market to get a good feel of the median and where the market sits."

The Hawke's Bay managing director said Hastings' sharp rise in pricing over the last year (+$262,300) is due to the district having been under priced for years.

"Hastings is benefiting from being undervalued for a period of time, likewise if you looked at CHB and Waipawa you can also see the increases in value there," he said.

Holland said a number of people are buying in places like CHB to get on the ladder because it's affordable, good value and still appreciating.

He added that with the market moving so quickly, anyone with property and thinking of selling shouldn't ponder the thought for too long, warning that being out of this market can mean a loss in value.