Published on: 2014-11-17
Hamilton Residential Reflection
As predicted, the beginning of summer is coninciding with a lift in activity across the market.
The increased number of properties that entered the market during spring has immediately created better choice and has ignited renewed buyer interest.
The trading banks are also reporting a 'freeing-up' of credit for first home buyers, which acts as a further catalyst among buyers, who are being encouraged back into the market.
On the back of this, salespeople are experiencing increased urgency among first home buyers.
This is of course reflected in 'median days to market', which has now plummeted to 30 days.
The number of Hamilton residential house sales has climbed month-on-month, but, strangely, the median priced still varies from month to month (bouncing between $375,000 and $350,000!).
Based on our information, this fluctuation can primarily be put down to the composition of sales during any given month, as opposed to differing representations of value-for-money.
This volatility in price is not sustainable; there is underlying pressure on prices to rise, particularly for well-presented, renovated, homes in established or sought-after suburbs (for example, Hamilton East and the ever-popular newer suburbs of the north east).
With renewed interest from first home buyers, we expect pressure will shift into traditional first-home-buyer markets during summer.
Perhaps reflective of recent price activity, auction clearance rates are sporadic.
However, vendors are encouraged by certain properties that continue to surprise on the upside. Some have sold well above salesperson (and vendor!) expectations.
We expect this will be a consistent theme throughout the next quarter as clearance rates improve.