Hauraki house prices, sales fall

A drop in Hauraki house prices compared to the same time last year doesn’t mean the market is in for any significant change, a local realtor has said.
Instead, September data released from the Real Estate Institute of New Zealand (REINZ), showing the Hauraki district having the biggest year-on-year fall in price within the Waikato – from $630,000 to $555,000 – highlights the different properties being sold.
“The properties that have sold, especially between last September to this September, have been different types of properties,” Richardsons Real Estate Paeroa and Ngatea branch manager Rhys Carmichael said.
“Back then, there were a few higher-end properties selling which lifted the medians, however in the last few months, the majority of properties selling have been properties in the middle of the market,” he said.
“That naturally has changed the [median] price.
“Now, if I was looking at the market as a whole, we haven’t really seen the property prices shift much. It’s more about the time to sell a property that is taking longer.”
According to the REINZ September data, it takes on average 54 days to sell a property, four days longer than August findings, and longer than the 10-year September average of 39 days.
“Six months ago, buyers were trying to get their hands on anything,” Rhys said. “Whereas now, with more listings available, buyers have more choice and the time to compare properties, as there isn’t the same sense of urgency that we saw in the peak of the market.”
Overall, it was crucial for sellers to understand the local market and be realistic when listing a property, Rhys said.
“There are some listings that have been given overinflated price expectations which has resulted in these properties sitting on the market, so more than ever it is important to ensure your property is priced competitively in comparison to other properties for sale.
“It is equally important to have a local agent, who lives in and understands our local market,” he said.
The REINZ data also showed that year-on-year double-digit sales drops were recorded in Hauraki, with a decrease of 19 per cent. The Thames-Coromandel district however, was bucking the trend, with double-digit sales increasing by 42.5 per cent.
REINZ regional director Neville Falconer said in Thames, vendors’ price expectations were still above market value, but some were starting to get more realistic as their property sat on the market for longer.