Sue Hall

"My reputation is your guarantee"

"If anyone is looking for an excellent no nonsense Real Estate Agent, then look no further than Sue Hall - She’s the one! Her knowledge of the Real Estate industry is invaluable. Sue always goes that extra mile, willing to meet with you any time of the day or night. Sue sold me my first home in 2010 and since then..."

- Vikki Seaman

"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

How is the Real Estate Market looking following Covid-19?

Though it is always difficult to have a crystal ball when it comes to predicting the real estate market, there are several historical factors we can look at when evaluating the market moving forward.  A number of comments in this blog have come from trusted sources and experiences of those who have had lengthy careers in the Real Estate industry, including working through the previous Global Financial Crisis.

Read More »

Covid-19 and Your Property - What You Need to Know

For answers to the frequently asked questions regarding Covid-19 and Real Estate, please visit this informative article from Lodge Real Estate.

Read More »

Balloons Over Waikato 2020

It was with extreme disappointment and heavy hearts that the organisers of Balloons Over Waikato announced that all public events, including morning inflation and the Nightglow have been cancelled. "As per the Government recommendations in regards to mass gatherings, Balloons over Waikato have made the decision to cancel public attendance at Innes Common for morning flying, The University of Waikato for Nightglow, and all other sub events associated with the Festival."

Read More »

Ruakura Inland Port Set To Open In Two Years

An inland port the size of Auckland's CBD in Hamilton is one step closer with Tainui Group Holdings and Port of Tauranga joining forces to open at Ruakura within two years.

Read More »

Waitangi Day 2020

The 6th of February every year is Waitangi Day.  This day is the most important marker in New Zealand’s history and commemorates the first signing of Te Ririti o Waitangi, The Treaty of Waitangi. Waitangi Day is a day to reflect on the controversy that surrounds the Treaty of Waitangi – Throughout history and within today’s society, how this has affected all New Zealanders and how it has shaped the country in which we live today.

Read More »

More Blog Articles »