Market Update - 1st Quarter 2018

There has been a sound start to the first quarter of 2018 with 92 sales in the Kerikeri and surrounding areas, compared with 106 in the same period of 2017. Some of the reduction can be explained by the slow turnaround of LIM reports and the sale of sections awaiting titles leading to longer unconditional agreement and settlement timeframes that are now filtering through as second-quarter sales. Most of the reduction can be traced to lower section sale volumes due to limited stock. Enquiry for sections is fairly strong but often buyers are disappointed when they try to find land with a suitable building site within their budgets and are not prepared to wait for the long timeframes for building. This has meant that some section buyers are looking elsewhere in the country to move to or are buying existing homes.

Residential section sales volumes in first quarter of 2018 are 70% lower than first quarter of 2017 at just 5 compared to 17 during this period last year due to limited stock on the market. Consequently lifestyle bare land (over 1ha) continues to fill some of the void with similar volumes to the same period last year averaging 3 per month.

The biggest growth has been seen in the over $1 million housing bracket nearly doubling the 2017 first quarter volume with the best quarter on record for over a decade. There were 11 sales in the first quarter compared with 6 in the first quarter of 2017. There is a strong appetite from buyers for above-average quality, newer built homes.
The middle of the market ($500 - $800,000) has been slightly cooler than the same period last year with an increase in stock levels meaning vendors are competing with more properties to attract buyers. Properties priced ahead of the market are taking longer to sell and some vendors are reducing asking prices to get more interest.
The lower end of the housing market (under $500,000) has been slower due to limited stock and also fewer first-time home buyers or investors who typically seek this category of home.

The median price for homes in first quarter of 2018 for the Kerikeri area continues to increase and is up 17% from first quarter of 2017 at $708,000 although some part of this can be attributed to the change to a higher proportion of sales in the higher brackets. The median price for homes is up 10% from the previous quarter fourth quarter of 2018 and is well above the Northland and national median price, closing the gap with Auckland as prices there level out.

With the steady inflow of new listings and continued interest from buyers, both locally and around the country, our outlook remains very positive for a strong property market in Kerikeri for the remainder of 2018.

* Source data from REINZ.

Graphs and analysis produced by realkerikeri.co.nz

Disclaimer:
The information is this article is sourced from REINZ market statistics and REAL Property Kerikeri Ltd (REAL) accepts no responsibility for the accuracy of the source data. No further reproduction or distribution of this information is permitted without prior approval of REAL Property Kerikeri Ltd (REAL). By accessing these documents you agree that REAL or any employee or licensed salesperson of REAL will not be held liable for any direct or indirect losses arising from the use of the information and the material attached. Any information of special interest should be obtained by you through independent verification and consultation with the appropriate professionals and local authorities.