Despite Uncertainty, Napier Real Estate Outlook is Positive
While the number of sales fluctuates month to month the average monthly sales in Napier sits at around 105 which represents almost half the total number of homes for sale in Napier.
The number of listings continues to be the primary market constraint and is creating a high degree of frustration for potential buyers. Vendors however are benefiting from the higher prices and a quicker sale.
In Napier the median price has risen incrementally each month, breaking through the $500,000 threshold in the second quarter of 2019.
According to QV, current prices in Napier are 10% higher than at the same time last year. The median price in December was a record $580,000.
At this level home loan affordability has fallen by 1-2% as price inflation outstrips increases in income.
On the other hand, consistently low mortgage interest rates continue to assist potential buyers. The lower rates mean some first home buyers are now able to satisfy the banks serviceability criteria.
In this environment investors are showing a renewed confidence – especially those with the equity and cash flow who can take advantage of competitive interest rates to continue to invest for retirement.
The latest data shows that the median length of time for a property to sell in Napier was just under a month (28 days).
If a property is taking longer than six weeks to sell, it may mean there is some perceived disadvantage in the location or features of the property, or the sellers price expectations may be higher than those of the most active buyers.
The outlook for 2020 remains reasonably positive, though 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.
Lest we forget...
On this ANZAC Day, let's take a moment to remember and honor the brave men and women who have served and continue to serve our country.
Tell us who are you honouring today. Whether it's a story from the battlefield or a memory of a family member who fought in the war, we'd love you to share your stories below.
Poll: Does the building consent process need to change?
We definitely need homes that are fit to live in but there are often frustrations when it comes to getting consent to modify your own home.
Do you think changes need made to the current process for building consent? Share your thoughts below.
Type 'Not For Print' if you wish your comments to be excluded from the Conversations column of your local paper.
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91.5% Yes
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8.2% No
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0.3% Other - I'll share below!
Getting unfinished projects finished
This is an international project that completes projects left when someone dies. You pay postage to get it to a volunteer and for them to return it to you.
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