Auction Interest Strong
Published on: 2015-05-14
Lodge Real Estate’s managing director, Jeremy O’Rourke, said today the few numbers of home sellers going to auction is surprising and vendors are not taking advantage of strong buyer demand and low housing stocks.
“Only 25% of all homes being sold in Hamilton during the month of April were being offered by way of an auction. This is compared to around 50% of homes in Auckland being offered through auctions.
“Current market conditions certainly favour the vendor, with strong buyer demand for quality properties and record low numbers of new properties being listed. For those vendors choosing to sell through auctions, many are realising sale prices at well above expectations,” he said.
The number of new homes coming onto the market as a percentage of total stock fell 6.25% between March and April 2015. During April, only 233 new properties were listed on the Hamilton market. This compares to 320 new properties listed in March 2015 and 292 one year ago during April 2014.
“Typically, Hamilton real estate prices rise when Hamilton city’s stock-to-sale ratio sits at around three 3 months. In April, it was only 2.6 months. These lower stocks mean quality properties are being snapped up quickly. The average number of days homes are on the Hamilton market is sitting at 31, down from 42 in July last year.
“On the sales side, historically April sales typically dip significantly. But this year, they haven’t dipped as much. For instance, last year, March sales were 257 and dropped to 199 in April 2014 – a 22.5% decrease.
“Whereas Hamilton’s March 2015 sales were 329 and dipped only slightly to 296 in April - a 10% decrease,” explained Mr O’Rourke.
“All of these statistic can be summed up in the fact that Hamilton is definitely a sellers’ market at the moment. And we expect the balance to be tipped in the sellers’ favour throughout the winter months.”