Published on: 2020-03-16

Record median house price, busy auction rooms herald strong March ahead in Hamilton

Record median house price, busy auction rooms herald strong March ahead in Hamilton

February was a very strong month for residential property sales in Hamilton.  The Real Estate Institute of NZ (REINZ) last week released its monthly figures showing Hamilton’s median has skyrocketed to $644,000 from just $605,000 in January. This is more than $100,000 higher than the February 2019 median of $542,000.

Lodge Real Estate Managing Director, Jeremy O’Rourke, says, “The residential property market is very strong in Hamilton and we’ve seen more quality properties being listed during the month. 

“Across Hamilton, a total of 266 properties were sold during February which is up from 174 in January and 254 in February 2019.

“The city’s auction rooms are particularly busy and clearance rates are much higher than past months.  However, Hamilton still does not have enough quality properties on the market to satisfy the strong demand we’re seeing from discerning buyers.”

O’Rourke says buyers need to prepare themselves for auctions.  If they fail to do so, then they need to prepare themselves for disappointment.

“We are seeing a lot of buyers miss out on properties at auction because they aren’t prepared.  When competition heats up during a seller’s market like we are experiencing, it’s very important that buyers take time to do their homework before they find a desirable property they want. 

“Many homes are going to auction in Hamilton at the moment, so the chances of you being in an auction room are high.  So, you need to do your homework before you get there.”

He says there are three (3) things buyers must do to prepare for the current market and auctions in particular.

“The first thing you need to do to prepare for auction is to attend a few before you are buying.  This will prepare you for the pace of decision-making that is required.  Potential buyers are normally a bit anxious the day they come to auction prepared to bid.  You don’t want that day to be the first time you’ve been in a busy auction room.

“Secondly, research the current market situation and trends.  Understand the likely price point for the house you want, get a feel for how competitive the bidding might be on the day and get your finances all lined up to be in the most competitive position you can be.

“And finally, put your agent to good use.  Your agent knows the market inside out, are attending auctions all the time, understand the level of likely competition and so much more.  Get them to earn their fee.”

 

O’Rourke also pointed to the Government’s Get Sorted website which has a lot of home buying advice, tools and resources: getsorted.org.nz

For more information, see www.reinz.co.nz and https://www.lodge.co.nz/News.