MARKET UPDATE - 2017 in review

Greetings Everyone! We hope 2018 is a great year for you.

Straight into analysing the real estate realm we note QV was pointing to LVR speed limits, stricter retail bank lending criteria and uncertainty ahead of the election as the reason for 2017's overall deceleration of residential property value increases. However, we also saw periods of rapid value increases in some areas and decreasing values in others.

Overall, the nationwide average shows residential property values increased +6.6% or +$41,660 during 2017 from $627,905 in December 2016 to $669,565 in December 2017, according to the latest QV House Price Index statistics. The average national value increased +3.6% over the final three months of 2017.

Kerikeri’s 2017 sales volumes were down on 2016 for most months during the year, apart from February, March, June and July.  Overall the sales volume was 26% below 2016 levels. The lower number of sales is attributed to fewer sales of bare land and homes under $500,000 due to low stock levels. December was particularly disappointing, down 53% from the previous year.  On the upside, the buyer inquiry has been strong throughout the holiday period and, combined with an increased number of listings, bodes well for a solid summer season.

Prices, however, continued their upward trend with a median house price of $637,000 for Kerikeri in 2017 up 11.5% from $571,000 in 2016. Median house prices are now up 67% from the bottom of the market in 2012. The median sales price across New Zealand in December 2017 for all residential property was $550,000 and for all areas excluding Auckland it was $450,000.

The average sales price for houses in Kerikeri in 2017 was $712,000, up 15% from $621,000 in 2016.

Sales volumes for residential sections under 1ha. dropped from 83 in 2016 to 45 in 2017, mostly because of the lack of available stock for sale. The new development of sections has been slow, resulting in diminished stock and higher prices achieved. The median sales price for residential sections was $239,000 in 2017, up 31% from $182,000 in 2016 and double the median price at the bottom of the market in 2012. The median price achieved in the last quarter of 2017 was $270,000.

The average time to sell in Northland is 44 days.  This is still lower than the 10 year average of 55 days.

Have a great year. This is a great time for the enquirer, buyer or seller to call in and discuss any relevant real estate matters with us.  And remember, the coffee is on us!