Hamilton Real Estate Market Takes a Knock
In fact, the New Zealand Residential Sale Market is slowing according to sales volumes released today by REINZ.
After the GFC (Global Financial Crisis) years of 2008-2011, where we saw a slump in the Hamilton and indeed the New Zealand Residential Sale market place, a well deserved minor recovery occurred in the year 2011-2012.
For example this saw sales numbers in Hamilton increase from 2011 (162) in February through to February 2012 (246).
Yeah – we are on the way to a more stable market place – or so we thought said Greig Metcalfe of LJ Hooker, George Boyes & Co Ltd. This stabilized through to 2013 (245 Hamilton sales) and with all the hype you would have thought this February 2014 would be set for expansion.
Now February 2014 has slumped sales volume wise in Hamilton to 193 sales – that is a massive 53 sales or 21% volume drop.
Interesting – most of New Zealand seems to be following the same trend, Auckland down 9%, Dunedin 16%, Wellington 13% and of course Hamilton 21%. The only major Region to have increase in sales is Christchurch (28 sales) plus 5% and Tauranga (11 sales) plus 5%.
So what of value – the median sales value in Hamilton in the last 12 months measured in February has increased from $334,000 to $375,000 – that’s a $41,000 increase .
What can we draw from this?
Sales are down and value is up – unusual. Days to sell are extending (up to 46 days to sell on average). This from 30 days in December.
LVR (Loan-to-Value Ratio) – hurts the Regions. No boom existed in Real Estate last year in the Regions – the Reserve Bank’s application of 20% deposits to the Regions was and is a clear mistake – when only Auckland and Christchurch were getting excited.
This recovery we are in is very patchy and evidence to support this is emerging every day.