Published on: 2018-09-24

Gap between lower and upper end of housing market widens in Hamilton

Gap between lower and upper end of housing market widens in Hamilton

Can you still find homes under $200,000 in Hamilton city?  The answer is, “Yes, but they are few and far between.”

Five homes in the last six months have sold for under $200,000.

Homes selling with a $1 in front of them, however, are much more common at the top end of the market.  14 million dollar homes were sold in Hamilton during August, bringing the total to 77 for the year.

Lodge Real Estate’s managing director Jeremy O’Rourke says, “We are starting to see the gap widen between the upper and lower end of the Hamilton housing market.

“There is a lot more pricing pressure on homes selling for $800,000 and higher.  What that means is we are seeing prices in this upper bracket pull away at a faster rate from homes in lower pricing brackets.  This is causing Hamilton’s median to continue to rise,” says O’Rourke.

The Real Estate Institute of NZ (REINZ) released its monthly figures today and reports that Hamilton’s median for August now sits at $551,000.  This is an increase from $530,000 in July, and down from $567,000 in August 2017.

After a dearth of listings over the winter months, August saw more homes coming onto the market with 333 listings.  This compares to 301 homes listed for sale in July and 294 listed in June.

There were a total of 277 homes sold in Hamilton during August.

“There are still more buyers than sellers in Hamilton.  And while a good number of homes came onto the market in August, they were snapped up very quickly. The city is still experiencing a shortage of quality homes available for sale,” says O’Rourke.

O’Rourke says there is strong confidence in the Hamilton market coming from not just residential buyers, but developers and investors as well.

“Developers are very active throughout Hamilton.  They are looking for land to develop duplex and apartment housing options.  Infill housing is also popping up across the city.  Additionally, on the outskirts of Hamilton, developers are looking for land to develop greenfields housing communities.

“Additionally, investors are more active than they have been in quite some time.  There has been some uncertainty among investors for a few years as factors such as insultation regulations, the residential tenancies act and the bright-line test were signalled to come into force.  We’re starting to see investors breaking out of this hesitant mode and becoming more active.

“Overall, all these factors are signals that the Hamilton market is extremely buoyant.  There is no sign of any looming housing crisis and its certainly not slowing down as has been reported about the Auckland market,” says O’Rourke.

For the latest REINZ market data for Hamilton, visit www.reinz.co.nz.