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

"Just wanted to thank you for making the sale of 53 Carrington Avenue so seamless and stressless. My only regret is that we haven't actually met you yet! But we will make sure to come over and do that before long. Anyway, thanks again for all your great work on our behalf. "

- Trevor & Pauline
More testimonials »

Hamilton Real Estate Market Showing Real Signs of "Prudence and Rationality"

17th Aug 17

Lodge Real Estate’s managing director Jeremy O’Rourke says there’s a prudence and sense of rationality in the Hamilton real estate market not seen for some time.

“This time last year we had what we would call an ‘irrational’ market,” O’Rourke says.  “This year, there’s much more rationality in buying decisions, even in a market with low supply and strong demand in a growing city.  People are not buying at any cost like they were last year.”

O’Rourke says several factors are combining to create a more prudent and slightly slower market in July, including Loan-to-Value restrictions keeping investors out of the market, “substitute” markets and many people wanting to buy first before they sell.  He suspects September’s general election could also be keeping people away.

There were fewer house sales in Hamilton in July 2017 with 244 houses sold, down from 260 in June and well down on the fevered days of July 2016.  It’s taking slightly longer to sell at 39 days, but median prices are showing no signs of slowing down.  The median house price in Hamilton in July 2017 is now at $529,000, up from $520,000 in June and up from $507,000 a year ago.

O’Rourke says while that median price continues to rise, there’s much more prudence in the Hamilton market at the moment.  “People are prepared to pay for the right property but there’s now a reluctance to take on ridiculous debt – They won’t buy houses at any price like last year".

“We tend to get myopic about Hamilton but we forget that we are surrounded by substitute markets – Lifestyle blocks and great towns within 20 minutes drive of Hamilton that offer great value.  That’s a release valve for the Hamilton market and it can temper the prices we see here,” he says.  “If you live around Ngaruawahia, it’s only eight minutes to The Base and a lot of people work at the top end of town.”

 

 

He says many people are currently also wanting to secure properties first before selling and that’s impacting supply.  The influx of people to Hamilton City continues, O’Rourke says; coming from migration and people moving from other cities.  “I think Hamilton has been undervalued in the past but that’s changing dramatically as confidence continues to build in the city, with the likes of the turning of dirt at the Ruakura Inland Port.  There’s lots of good things happening in Hamilton and that’s driving a lot of industry to us.”

He says there’s a band of people, often in their mid-30s to mid-40s who are returning to Hamilton after growing up here.

A few first-home buyers are getting into the market, but the LVRs continue to impact on investors and that’s flowing into the rental market; Hamilton has had a dire shortage of rental properties for several months.  O’Rourke is calling for a loosening of LVRs just for first-home buyers, to allow them to buy and live in their first home which would free up some rental housing.

O’Rourke says there’s many things adding up to the slightly quieter market in July.  “These things we’re seeing, including that prudence and rationality, the substitute markets, people waiting on apartments to be built, they all have a cumulative effect.  You tend to see lots of these little things adding up, then something always happens and they release themselves.”

^ top
Filed under Hamilton / Waikato \ Real Estate

Related posts

Leave a comment

Fields marked * are required

Sue Hall's Blog

The New Look Claudelands Bridge is Ready!

After seven weeks of construction, the new look Claudelands Bridge will be relaunched to the public this week. Some traffic management such as cones and message boards will be removed gradually to allow for road users to get used to the new layout and function.

Read More »

What Time is the Train on Saturday?

In July 2018, we reported on the possibility of a commuter train between Hamilton and Auckland being talked about between the New Zealand Transport Agency and various Councils and in December 2018, the business case and funding were approved.

Read More »

Victoria on the River to Get New Addition

Hamilton’s Victoria on the River park will feature a new sculpture thanks to the generosity of philanthropic arts organisation MESH Sculpture Hamilton.

Read More »

KiwiBuild Revisited

Housing Minister Megan Woods has announced a reset of the KiwiBuild scheme. The target to construct 100,000 KiwiBuild homes in 10 years has been dropped. "We will be dropping the target of 100,000 houses over 10 years. It was overly ambitious and led to contracts being signed in places where there was little first home buyer demand", Woods said.

Read More »

Anglesea Street Te Koopuu Mural Project

Hamilton is about to get a mural, and you could be the one to paint it. If you're keen, it might pay to put some time aside - The mural is set to be 11 metres high and 248 metres long - Potentially New Zealand's largest.

Read More »

More Blog Articles »