Published on: 2018-04-19

Hamilton’s residential housing market is shifting in favour of sellers

Hamilton’s residential housing market is shifting in favour of sellers

Lodge Real Estate’s managing director Jeremy O’Rourke says Real Estate Institute of NZ statistics released on 17 April show Hamilton’s residential housing market is shifting in favour of sellers.

“March was a very strong month for home sales in Hamilton and buyer demand continues to rise.  There were 344 homes sold in Hamilton during March and that compares to just 291 in February and 336 in March 2017.

“However, home listings have not kept up with those sales.  On 1 March, there were 792 homes available for sale in Hamilton and on 1 April the number listed was still the same at 793.  This supply-demand imbalance means the power has shifted slightly toward sellers in the Hamilton market,” says O’Rourke.

As reported by the Real Estate Institute of NZ (REINZ) on 17 April, Hamilton’s median home price increased during March to $535,000 which compares to $522,000 in February and $540,750 in March 2017.

Mr O’Rourke says digital and social channels are impacting the speed with which buyers respond to properties new to market. This, he believes, is a primary reason for the rise in multiple, competitive offers being presented to home sellers so early in the marketing process.

“This year, in particular, we’ve seen an increase in the number of multiple offers coming in on quality home listings.  This is much different than, say, five years ago.  And we’re putting it down to the transference of marketing dollars from print to social and digital channels.

“Marketing channels, like Facebook and Google, are changing the way home listings are put in front of people who weren’t necessarily thinking about buying a new home – people we refer to as passive buyers. Traditionally the newspaper was the most effective way of reaching these buyers.

“However, the power of these digital channels, when used effectively, means when a listing goes up online, we are often seeing multiple offers on quality properties before the Saturday papers hit letterboxes.  This is one more example of how the power of Facebook and Google is changing consumer behaviours – in this case, in how buyers, sellers and agents interact in the real estate market,” O’Rourke explains.