Now is the time for mortgage advisers to look to loan seekers in smaller regional areas as housing sales have jumped across the board in the three months from June to August this year compared to the same three months in 2014.
The Waikato has topped the list with a 96% increase in sales volumes, closely followed by Coromandel at 91% with Northland at 74% and Bay of Plenty at 64%.
“Coromandel is opening up as another suburb of Auckland with a two hour ferry ride to Auckland city. It is a great option for those looking for a quieter lifestyle but with the ability to reach Auckland if need be,” says Real Estate Institute of New Zealand chief executive Colleen Milne.
“The Coromandel region is also a popular place for many to holiday and with low interest rates and property values increasing so much in other holiday hot spots, such as Northland, it is reasonable to suggest that many have decided to secure a holiday home in the Coromandel instead.”
Although Waikato, Bay of Plenty and Northland have had their share of interest for some time, REINZ data indicates that other areas are starting to see gains in both sales volumes and median sales values, among them Hawkes Bay, Wairarapa, Central Otago Lakes, Otago and the West Coast.
“The sales volumes for the West Coast for August are up 260% compared to August last year. Although the numbers there are small compared to larger regions, the sales volumes are showing that a lot more people are buying in these smaller areas, so demand is spilling from out from the centres.”
Sales volumes in Wairarapa have gone up by 119% in August 2015 compared to the figures from August 2014, a increase spurred on by its close proximity to Wellington and scenic draw.
“These factors make it a drawcard for holidaymakers, retirees and some chose to commute to work in Wellington so they can have the lifestyle the Wairarapa offers," says Milne.
"I believe this is a growing trend where people are considering their lifestyle options long term and for many living outside the main centres is the answer."