Number of homes listed during July in Hamilton breaks record

MEDIA RELEASE
12 August 2016

Number of homes listed during July in Hamilton breaks record

The number of homes listed for sale in Hamilton during July 2016 was the highest on record with 442 coming onto the market during the month.

Lodge Real Estate’s managing director, Jeremy O’Rourke, said, “The number of residential homes coming onto the Hamilton market in July was twenty-six percent higher than June 2016 and also twenty-six percent higher than July 2015.

“Hamilton landlords getting out of existing rental properties is driving a big portion of those listings.”

The Real Estate Institute of NZ (REINZ) released its monthly figures yesterday which showed Hamilton’s median hit a new record high at $510,000, which is up from $485,000 in June 2016 and $389,000 one year ago.

With 363 homes sold in Hamilton during July, the result was a net stock increase. As of 1 August, there were a total of 503 residential properties for sale in Hamilton. That compares to 431 available as at 1 July and 337 available as at 1 June.

Mr O’Rourke said this solid net stock increase during July should take some of the pressure off the sharp increases in sale prices.

“There is greater choice for Hamilton home buyers at the moment with more stock available. Already we’re seeing slightly less urgency among buyers because they don’t feel desperate to buy the first home they like. Although we predict Hamilton house prices will continue to rise, over the next few months we should see prices rise at a slower rate.

“The impending forty percent loan to value (LVR) restrictions coming into force for property investors is driving the city’s surge in listings. Landlords want to offload properties before they become harder to sell. So, if they have been thinking about listing for some time, they are now acting quickly to list,” he said.

Despite more investment properties coming onto the market, Hamiltonians are still finding it challenging to find quality rentals.

“Our rental division currently manages 3403 rental properties, which is 115 more than one year ago.

“However, the challenge for renters is that quality properties are snapped up quickly. Lodge only has 41 vacant properties available, whereas we had 86 vacant properties available for rent one year ago,” he explained.

On average, it took 28 days to sell a home in Hamilton during July 2016. Sections in the city are being snapped up quickly with the average days to sell a section during the month sitting at eight (8).

For the latest REINZ market data, visit www.reinz.co.nz.

-ENDS-

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