Napier Market Review: Low Inventory & Low Interest Rates

Updates from Cox Partners Estate Agents

Napier Market Review - Cox Partners Estate Agents
During September, Hawke’s Bay property sales recovered from their 4-year low point last month. There were 105 sales in Napier and 87 in Hastings.

The average number of days to sell a property in Hawke’s Bay fluctuates from month to month but tends to sit at between 4 and 5 weeks. If a property is taking longer than six weeks to sell, it may mean that buyers are distracted by some perceived undesirability in the location or features of the property, or maybe the sellers price expectations are higher than those of the most active buyers.

According to CoreLogic’s latest House Price Index, values in Napier tracked sideways over the month of September and average property values are down – 0.9% over the last three months. However, prices are still up 8.2% over the last year.

Interestingly, Hastings experienced almost twice the rate of growth (15.3%) as Napier in the past year.
This has taken the average value in Hastings to $535,219 – less than $18,000 short of that in Napier ($553,128). This is a slim margin compared to recent history.

Consistently low mortgage interest rates continue to assist potential buyers. The official cash rate (OCR) remained at 1.0% this month, but there are indications that there may be a further drop in the OCR during November. If this happens, this will help ensure mortgage interest rates continue to stay attractive.

Listings remain low, which is contributing to price pressure, especially in the lower and median quartile price ranges. This will particularly appeal to first home buyers and investors.

Both low inventory levels and low mortgage interest rates are supporting the Hawke’s Bay property market. Prices are expected to continue to rise, but at much slower rates than we’ve seen in recent years.

While the outlook remains reasonably positive, uncertainty in business confidence, and doubts about the overall economy is expected to affect people’s willingness to take on more debt.

For an up-to-date report on the local real estate market please call us on (06) 835-4321 anytime.