Homes listed for sale in Hamilton have reached a new high with 442 new houses listed on the market over the month of July.
Hamilton’s median hit a new record high at $510,000, up from $485,000 in June 2016 and $389,000 one year ago, the latest Real Estate Institute of NZ (REINZ) showed.
Lodge Real Estate’s managing director, Jeremy O’Rourke said, “The number of residential homes coming onto the Hamilton market in July was twenty-six percent higher than June 2016 and also twenty-six percent higher than July 2015.
“Hamilton landlords getting out of existing rental properties is driving a big portion of those listings,” O’Rourke said, pointing out he expected the increase to take some pressure of the sharp increases in sale prices.
With 363 homes sold in Hamilton during July, the result was a net stock increase. As of 1 August, there were a total of 503 residential properties for sale in Hamilton. That compares to 431 available as at 1 July and 337 available as at 1 June.
“There is greater choice for Hamilton home buyers at the moment with more stock available. “Already we’re seeing slightly less urgency among buyers because they don’t feel desperate to buy the first home they like. Although we predict Hamilton house prices will continue to rise, over the next few months we should see prices rise at a slower rate.
“The impending forty percent loan to value (LVR) restrictions coming into force for property investors is driving the city’s surge in listings. Landlords want to offload properties before they become harder to sell. So, if they have been thinking about listing for some time, they are now acting quickly to list,” he said.
Although more investment properties are becoming available on the market, he said Hamilton residents are still finding it difficult to find quality rentals.
“Our rental division currently manages 3403 rental properties, which is 115 more than one year ago.
“However, the challenge for renters is that quality properties are snapped up quickly. Lodge only has 41 vacant properties available, whereas we had 86 vacant properties available for rent one year ago,” O’Rourke said.