The latest figures from REINZ for April makes interesting reading as it shows a 3% fall in medium sales price from March 2018 over April 2018. What does this mean? Has the market peaked and are we experiencing a correction? Or is it just a shift in the range of properties coming to the market at present?
When you study the statistics I believe it is the latter as when you look at the medium list price you see the average was down from $375,000 to $349,000 across Hawkes Bay. That is a decrease in value of $26,000.
When you look further into the statistics Central Hawkes Bay and Wairoa also makes a difference in the values, with a different picture emerging if you look at the main Urban centers across Napier and Hastings with the medium sales prices for April 2018 being as follows:
Hastings – $410,000 a drop from $436,000 in March 2018 – this drop could just be a slight correction or simply lesser valued stock coming to the market and being SOLD over April. The trend would need to be analysed over a longer period to make a firmer prediction.
Napier – $490,000 an increase from $486,000 in March 2018. Really it is steady as she goes with values being relatively stable over this two month period.
What will be interesting to watch however is what happens to interest rates over the next 6 months as the major lending institutions indicating the cost of obtaining funds is rising globally. Meanwhile the Reserve Bank has kept the cash rate at 1.175%. Want to learn more about the Reserve Bank check out their web site. www.rbnz.govt.nz.
What is obvious is the market is still strong, we are all enjoying a surplus of buyers with not enough options for people to purchase.
Whilst the current trend is steady as she goes it really is the perfect time to bring your property to the market if you are thinking of selling. Major cities throughout New Zealand are showing signs of slowing and reducing values it is only a matter of time that the provinces follow. We all know how quickly the market can change it is a matter of being prepared.
Give Mike (0274445373) or Emerald (0278282296) a call if you’d like an appraisal and discuss you options. Remember as a vendor you are always in control.