Sue Hall

"My reputation is your guarantee"

" Sue Hall You've done it again Sue! Sold another home for us in a very professional manner, kept us informed throughout the process and done so in a caring way. We couldn't have asked for more. Thank you Sue!! "

- Sonny and Eileen

"Great company, great resources and great people. Sue has managed to sell our house within only the two month period we agreed upon. The sale became unconditional within seven days and Sue managed to keep our lovely tenant in place, as we had promised them. Great job! Thank you Sue and your team. "

- Mujiono family
More testimonials »

Hamilton Real Estate Market: Five Market Factors Characterise Last Six Months

13th Jul 17

Lodge Real Estate’s managing director Jeremy O’Rourke says five distinct market factors will characterise the last half of 2017 in the Hamilton residential property scene.

“We’re half way through 2017 and we’ve seen a marked difference in Hamilton’s residential property market this year, as compared to the past two years.  The frenetic activity we’ve experienced is over for now and the city’s home sales activity is easing into more of what we would term as a normal market rhythm."

“Our team has had a look at historic trends and coupled these with activity, demand and supply factors evident through the first half of the year.  Using that data, we predict five distinct market factors will impact the next six months within the Hamilton residential property market,” he says.

 

Factor 1:  High Demand for Bare City Sections and High-end homes

“Two types of Hamilton properties that will continue fetching top dollar and seeing fierce competition through to the end of the year are bare sections within the central city as well as high-end family homes."

“These properties continue to see multiple bidders intensely competing as they come to the market.  All signs point to these two types of properties continuing to demand top dollar as we move into the last half of the year,” says O’Rourke.

 

Factor 2:  Side-lining of Demand

“The Reserve Bank’s Loan-to-Value (LVR) restrictions on property investors coupled with the big four Australian banks turning off the lending tap, has served to sideline buyer demand.  We predict buyers will continue to see the noose tighten on lending as we ease into the last half of the year."

“For those who can access funds, this creates a fantastic opportunity for the savvy buyer to act now."

“The risk we see however, and what historic trends show, is that buyers and sellers will be poised and ready to move when lending restrictions relax.  And when they move, they all move together which will create another market surge.  However, this surge is unlikely to happen in 2017,” O’Rourke explains.

 

Factor 3:  Rental Supply at Critically Low Levels

“Our city’s rental supply is sitting at critically low levels and unfortunately we predict there is no good news for those looking to rent within the next six months."

“We manage a large portion of the city’s rental properties and we currently have less than a one percent (1%) vacancy rate.  We are signing new lease agreements for our rental properties even before vacating tenants move out.  Unfortunately, LVR restrictions are the key factor driving a lack of supply and we will see very few new rentals coming available in the near term,” he says.

 

Factor 4:  Elections Will Further Dampen Activity

“The years we have General Elections always see a hesitancy in the market and we predict the same will be true this year.  Buyers and sellers alike will normally wait to list or buy properties until after the election, when there is certainty around the governing party and its policies."

“During August and September, we predict buyer and seller activity in the Hamilton market will dampen even further than current levels,” he says.

 

Factor 5:  Immigration a Key Factor in Price Pressurefrenetic

“Even with the market slowing down this year, the vast majority of Hamilton homeowners can remain confident that their homes will retain their values.  That’s because residential demand is steady and this is largely due to increased intercity and foreign immigration.

“This sustained demand is the key factor why I won’t be surprised if Hamilton’s median house price outpaces the New Zealand median house price at some point within the next six months,” says O’Rourke.

The Real Estate Institute of NZ released its market data today showing Hamilton’s median house price fell from $534,500 in May to $515,000 in June.  A total of 269 homes were sold in the city during June, as compared to 341 in June 2016.  It is currently averaging 32 days to sell a home in Hamilton.

^ top
Filed under Hamilton / Waikato \ Real Estate

Related posts

Leave a comment

Fields marked * are required

Sue Hall's Blog

Auction clearance rates might be down, but you can still sell!

Across New Zealand, Auction clearance rates have taken a bit of a plunge recently. The downturn is part of the transition from a seller’s to buyer’s market, in large due...

Read More »

Hamilton Real Estate Market: Five Market Factors Characterise Last Six Months

Lodge Real Estate’s managing director Jeremy O’Rourke says five distinct market factors will characterise the last half of 2017 in the Hamilton residential property scene. “We’re half way through 2017...

Read More »

Economists Weigh in on the State of the Hamilton Property Market

What are the economists saying about Hamilton's real estate market? We’ve reviewed the commentaries from the Hamilton City Council, REINZ, CoreLogic, QV and www.interest.co.nz to create one neat bundle of digestible...

Read More »

Government Funding to Ease Hamilton's Pressured Housing Market

Lodge Real Estate's Managing Director Jeremy O’Rourke welcomed the Government’s announcement Tuesday morning that Hamilton City will receive a $272 million loan as part of the Government’s Housing Infrastructure Fund. “This...

Read More »

What Do Rising Interest Rates Mean for Hamilton's Property Market?

After years of record low interest rates, the talk of the property town has changed. Interest rates are set to rise, but by how much still remains to be seen. As...

Read More »

More Blog Articles »