1 May 2018
Q1 Market Update
The Hamilton residential market has kicked away quite strongly in 2018. Sales volumes for each of the first 3 months are all slightly higher than in 2017.
Salespeople have really noticed robust first home buyer activity which has significantly boosted the lower mid price ranges. Prices have continued along a flat trajectory from mid 2017, with negligible movement. The Median Sale Price for March was $530,000 which is 2% down on a year ago.
Interest rates have remained very competitive and at historically low levels which is aiding buyers. However, getting finance across the line has become increasingly difficult as banks appear more prudent when considering certain higher risk properties. Banks requiring builders' reports to support loan applications has become much more commonplace and plaster cladding homes come under much higher scrutiny.
So what is the market outlook for the remainder of the year?
Well prospects in the Waikato look quite positive. Volumes should continue at or above the 2017 levels, which were reasonable. Dramatic price changes appear unlikely with a continuation of the flat prices we have witnessed over the past 12 months. The consistent sales volumes here could be in contrast to declining sales volumes nationally as many markets around the country have slowed, including Auckland. One factor continuing to support the Waikato market is the sustained drift down from Auckland. The strong fundamentals of population growth, low interest rates and a strong regional economy greatly aid the local real estate climate.
In conclusion 2018 is still a great time to both sell and buy with a low risk of market correction for purchasers in the short term.