Kerikeri Real Estate Market Update - 2018 In Review

It is our pleasure to bring you a summary of the real estate market for 2018. 2018 was a year of records for Kerikeri real estate. The annualized median price for houses reached a new high of $679,000.  Record numbers of $1million plus homes sold during the year.

Total sales volumes were reasonably consistent with last year’s figures with 371 sales concluded compared with 393 in 2017.  The year finished strongly with total sales volume in the final quarter of 2018 up over 10% on 2017. January 2019 sales volumes are up by 20% on January 2018. The biggest growth in sales volumes was in the $800,000 plus bracket and the largest decline was in bare land sales driven by a shortage of supply of residential sections.

Please remember to pop in for a coffee and a chat with any of our experienced and friendly team members anytime.

Results by sector

Residential section sales volumes for 2018 are 40% lower than 2017 at 29 sales compared to 48 during the same period last year due to limited stock on the market. Lifestyle bare land (i.e. land over 1ha) sales volumes remained at similar level to last year with 32 sales compared with 31 this time last year.

The over $1 million housing bracket continued its strong performance with nearly double the 2017 volume. 46 sales in 2018 compared with 24 in the same period 2017. 6 sales in January 2019 over $1million suggest this trend is continuing into this year.

The middle of the market ($500 - $800,000) has been steady with lower overall volumes of sales compared to 2017 (164 compared to 180) but a similar percentage of the market for the bracket (44% of all sales were in this bracket).

The lower end of the housing market (under $500,000) experienced a slower winter but a resurgence of first time home buyer and investor enquiry in recent months has led to an upswing in sales. Properties that had been sitting on the market for a while have sold and homes under $450,000 are becoming very hard to find.

Commentary

As previously mentioned the annualized median price for residential homes in the Kerikeri area hit a new high at $679,000 which is well above the new record annualized median for New Zealand of $555,000.

The annualized median price for sections in Kerikeri has reached $220,000 and levelled out. The median price for 3000m2 plus lots in the newer subdivisions is close to $275,000. Prices are now reaching levels achieved just prior to the correction in 2008 after the Global Financial Crisis. Kerikeri’s median section price is still below the New Zealand median section price.

There are still a few sections available in Alderton Park, Kerikeri below $200,000. It is unlikely that sections will ever be made available at these levels in the future as new sections are likely to be priced closer to the $300,000 mark dictated by development costs. Come and talk to us if you are looking to grab one of these perhaps never to be seen bargain priced sections.

We are seeing more local buyers making moves and an increase in buyers from around the country outside of Auckland.  Overall 2018 was a very positive year for the Kerikeri real estate market and this trend looks to be continuing in 2019.  Now the holiday period is over we are finding more vendors asking for appraisals and there is a good supply of new property to the market to keep purchasers interested.

We are excited about prospects ahead for the rest of 2019 and look forward to the opportunity to serve you whether buying or selling in the near future.