Kerikeri prices continue rise, inventory levels at record lows - Market Update

What’s happening with house prices?

The quarterly median price for a house in Kerikeri for sales completed during the 3 month period of June, July, August was $925,000. That is up a massive 37% from the same period 1 year ago and up 3.9% from last month. If you had purchased a home 20 years ago at the median price of $200,000 

It could now be worth over 4.5 times that. It’s no wonder so many Kiwis invest in real estate as their primary investment choice.

What are the market drivers?

As we have covered in previous reports, the effects of low interest rates, returning expats and strong migration of New Zealanders from the cities to the Far North has caused a dramatic upsurge in enquiries and sales. This has led to diminished inventory of properties for sale across the district. 

The latest Covid-19 lockdowns have reinforced how people around the country can successfully work from home. We are hearing from city dwellers that they are fed up with taking the brunt of lockdowns and are now actively looking to move so they can work where they want to live. Who wouldn’t want to be near the beach or 5 minutes from the boat-ramp, versus tackling the congestion of the city and potential further extended lockdowns. 

Despite the level four lockdown in Auckland we have received offers “sight unseen” on properties often from buyers desperate to find a new home in the area. Fortunately, technology allows our industry to continue operating efficiently as agents, vendors, buyers, lenders and solicitors all interact on-line. This has kept the majority of existing sales moving forward even in the highest levels of lockdown. The only slowdown has been the physical inspections by building inspectors and valuers at level 4.  

How are the number of sales tracking?

Kerikeri and surrounds had 102 unconditional residential and lifestyle house and bare land sales in June, July and August compared with 132 sales in the same period last year. A 23% percent decrease driven by low inventory levels and existing agreements being extended out past the end of August due to Covid-19 lockdowns. 

Bare land sales are significantly down from 33 over the June, July, August period last year to only 16 this year. There are very few sections now left available for sale in Kerikeri and those development that have come on-line in the last year have sold out off the plan well before titles are issued and often before the works have even begun.

What about bare land sales prices?

The median price for a section under 1ha in Kerikeri was $475,000 for June, July, August compared with $270,000 last year a huge increase of 76%. 

How long is it taking to sell?

Days to sell have dropped from 79 for sales in August 2020 to 27 in August 2021. 

How are inventory levels tracking?

Inventory levels are down to 125 listings for sale on Trade Me from over 200 a year ago and an average of over 400 over the last 10 years. The recent lockdowns have exaggerated this as some vendors have hit the pause button on coming to market.

How many new listings are coming to the market?

New listing levels are starting to pick up as vendors who put their plans on hold come to the market and the usual Spring rush of activity begins. However, with many buyers who have already sold and are ready to buy, enquiry is very high immediately after the advertising starts and they are often flying off the shelf quickly. So, despite an increase in new listings coming to the market, inventory levels are remaining very low.

What is the outlook for the Kerikeri market?

Indications from market economists are that interest rate increases and LVR restrictions will be implemented by the reserve bank in coming months to try to kerb this continued upward price pressure. Despite interest rates set to rise, they will still be historically low for a while yet and the rule changes will likely affect first home buyers more significantly. First home buyers have not traditionally been a high percentage of the market in Kerikeri due to our above average prices. The migration to the Far North appears to be continuing strongly. Assuming these trends continue then we can expect our local market to stay strong for the foreseeable future. 

Consequently, we are anticipating a busy Spring in the Far North as lockdowns lift around the country. There may never have been a better time to sell.

Pop in for a coffee and a catch up with any one of us if you are thinking of buying or selling. 

Hospice update

This year we have joined forces with Hospice and are donating $1000 from each sale to help Hospice assist others in our community. Our relationship with Hospice has blossomed and we are like two families coming together. We are delighted to announce we have raised over $64,000 this year so far. The fantastic nurses and Administration team at Hospice now have two new vehicles to help with their incredibly valuable work. Every one of our team members dig into their own pockets to help with this valuable cause. We have also pledged to continue our relationship with Hospice next year and beyond.  Click here to discover more...

Other news in the community

You done have to look far to see there is plenty of development going on around the town. It is great to see so much activity that is so needed to bring the infrastructure to Kerikeri required to support our incredible growth.

Domain works and skatepark

Works have begun on the revitalization works to the Domain in central Kerikeri. This an exciting time for the community and particularly for the many youth who will be able to enjoy the upgraded basketball and skateboarding facilities when completed in early 2022. Taking advantage of the Provincial Fund grants, it will create a destination for families in the community to come together and enjoy the outdoors right in the centre of our town. 

Windsor Landing

What an amazing facility has been built at the end of Inlet Road. Plenty of parking, all tide access. Boat, kayak or stand up paddle direct from public space on the shoreline. It has been a long time coming and locals are already taking advantage of this huge improvement to our access to our fabulous marine playground – The Bay of Islands. Click here to locate Windsor Landing.

Waipapa Sports Fields 

The first stage of the new Sports Park in Waipapa are underway with the formation of the entrance and construction of other service connections to accommodate the ablution block and changing rooms.  Watch this space as the first 5 new fields, parking areas and walking areas come together in the first stage. The longer term vision has the potential to accommodate a hockey field, baseball diamonds, cricket nets, clubrooms, a dog training area, cycle paths, croquet lawns, children’s play zone and a gymnastics facility in the later stages.

Developments selling fast – Arvida, Quail Ridge and Inlet Estate

Interest has been strong in the new Arvida retirement development and 16 houses have been completed very quickly with many more under construction. Quail Ridge at the end of Rainbow Falls Rd continues to expand changing the views from the golf course and town. Inlet Estate has only a handful of packages left. Large integrated development proposals for the Bing land off Kerikeri Road behind King St and for the Brownlie farm behind the golf course have been presented to the Council. These two developments alone have the potential to house 3 to 5 thousand people.

It is becoming clear that right now is a major turning point for Kerikeri.  The population of Kerikeri and its immediate surrounds have grown to nearly 20,000 now and we continue to see rapid growth far greater than most other areas of the country. 

Recently our town missed out on any central government funding from Waka Kotahi NZ Transport Agency to solve our traffic problems. With over 11,000 traffic movements daily on Kerikeri Road currently, nobody has an answer to how our community is going to cope with the future challenges of moving around our town in light of the current population explosion we are witnessing. One thing is for sure, traffic is going to get a lot worse before a solution is in place. 

Make sure you have your say on how our town progresses. Submit your views on Council plans including the upcoming Draft District Plan which will have affect on the next 10 to 20 years of Kerikeri’s development. Get a louder voice by participating or volunteering with community groups such as Our Kerikeri or Vision Kerikeri. Talk to your elected councillors and members of the Community Board about things that concern you. Positive change will not happen without our community having a voice.