The number of homes listed for sale in Hamilton dropped between May 1 and June 1, Lodge Real Estate managing director Jeremy O’Rourke says,
“The lack of new stock coming onto the market is starting to have an effect. There’s a competitiveness among home buyers at a level of which we haven’t yet seen this year,” he said.
“Agents in the city are seeing a greater number of multiple offers on quality properties.
“Home sellers will be in control of the Hamilton market for the next few months.”
Contributing to market competitiveness in the city is the fact that investors are more active than at the start of the year, following the Government announcement in April that a capital gains tax is off the table.
“Investors are competing more fiercely in the $350,000-$500,000 price band.
“While this creates challenges for first home buyers, it is a positive sign that the number of rentals becoming available in Hamilton could rise. This would be welcome as there is a severe shortage of quality rental properties available in the city,” said O’Rourke.
He said several factors could work together to put upward pressure on home prices in Hamilton.
“Hamilton City Council granted a record number of building consents in 2018 and construction activity related to residential properties and multi-unit dwellings is at a high level.
“Historically, this sort of confidence in the market normally results in price rises a few months down the line. Hamilton already set a record median house price in May, which was $580,000.
“Sales will slow over the coming months as they normally do during winter, but because of the lower stock available, keen buyers will start to scramble. That’s good news for sellers.”
Real Estate Institute of New Zealand (REINZ) statistics show 331 homes were sold in Hamilton during May 2019 as compared with 275 in April 2019 and 312 in May 2018.
