Houses selling above RV, multiple offers, rents up

Houses are selling fast in Rangitīkei towns. Photo / file

Sellers are getting at least 20 per cent more than the rateable values of houses in Rangitīkei towns, Property Brokers Marton office manage Wendy Wagner says.

"It's pretty damn good, actually."

Some are getting 60 per cent above RV, and last week one seller got $50,000 more than expected for a bare land block.

In Marton houses are selling at an average of 27 per cent over RV. For Taihape it's 24 per cent over. It's the same across the spectrum, from large stately homes to small humble ones.

"It's not just prices in the lower bracket that have gone up."

Typically it takes about 39 days to sell a house in Marton, and 33 days in Taihape.

Sellers often get more than one offer within the first week. And buyers are getting used to having to compete.

Many of the purchasers are buying their first homes, thanks to KiwiSaver. And some of the houses they buying are owned by landlords parting with rental portfolios.

Some new residents are moving to Rangitīkei to retire, others have jobs in Palmerston North and are willing to commute.

After an initial rush, the supply of houses has slowed down.

"People aren't moving unless they really need to now, I'm finding," Wagner said.

With rental houses selling to new residents, it's harder to find a place to rent. Rents have risen, and are $250 to $260 a week for a three-bedroom house.

Wagner has been in her job for a while, and seen some changes.

The 2007 real estate boom ended sharply in March 2008, she said. The current one started in late 2016 and is showing no sign of plateauing.

"This one has gone on for considerably longer. I don't think the prices will go back this time."

In mid-2017 there was an influx of buyers from Auckland. Then there was another, of Bay of Plenty people moving south after Aucklanders bought up houses in Tauranga and Whitianga.

New residents are liking the small town atmosphere in Rangitīkei, and local people are pleased they have come.

"Martonians love the idea of new people in town, because it promotes the businesses. The whole town gets a boost when we have new people come in. They come in with new ideas and join this and that. It's just great," Wagner said.

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