Published on: 2020-02-19

Coronavirus outbreak has potential to affect Hamilton property market

Coronavirus outbreak has potential to affect Hamilton property market

Lodge Real Estate Managing Director, Jeremy O’Rourke, says if the coronavirus outbreak adversely affects the Waikato economy, the local property market will follow.

“There’s a lot of uncertainty at the moment around the coronavirus outbreak and how it may affect our local economy.  Hamilton and the surrounding region’s industry is reliant on exports.  If we begin to see the coronavirus outbreak impacting on exports and jobs, the public’s confidence will wane.

“When economic uncertainty happens within our local community, a slowdown in Hamilton’s property market normally follows.  Historically, in times like this when external factors create ambiguity, people can delay putting their homes on the market while they wait for positive market signals.

“We haven’t seen a coronavirus effect on the market yet, but we are acutely aware it could potentially happen in the coming months,” says O’Rourke.

The Real Estate Institute of New Zealand (REINZ) released January sales figures today.  158 homes were sold in Hamilton during January, compared to 154 in January 2019.  The median house price rose to $619,000 from $605,000 in December 2019.

“While January is always a slow month for house sales, this year has started off slower than normal.  But during the first few weeks of February, momentum has picked up and more listings have come on the market, which means Autumn should see quite strong sales figures. It’s likely we’ll also see the median house price escalate even further as the year progresses.

“All of these factors mean the city is well and truly experiencing a seller’s market.  Quality properties are being snapped up quickly and we’re often seeing multiple offers in competition,” says O’Rourke.

Hamilton’s renters are also feeling the squeeze.

“The number of properties available for rent across the city is very tight.  And that is true in all categories, from student rentals to larger family homes.  We’re also seeing rents rise across the board,” says O’Rourke.

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