Gisborne's median house price drops to $570,000

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Gisborne’s median house price decreased by 5 percent year-on-year last month to $570,000, data from the Real Estate Institute shows.

“The region saw investors tentatively returning to the market following the election,” REINZ chief executive Jen Baird said.

“Local agents report a decrease in the buying power of first-home buyers, likely due to an increase in interest rates. Some vendors are adjusting their expectations and are working to meet the market, while others are hoping for better opportunities.

“Open homes saw some activity while auction rooms performed very well. Sales counts were on the low side (31 sales in October — down from 38 the same time last year). However, local agents expect this to change now that the election has concluded.

“The weather continues to have a significant impact on market activity, alongside factors such as inflation and rising interest rates.

“Local agents believe that the region will see more activity in the coming months as the weather improves.”

Bayley’s Gisborne director Simon Bousfield says the statistics are reflective of a market that is still finding its way.

“Median days to sell and sales count being highest since 2013 and lowest since 2011, respectively, show buyers are still relatively cautious,” he said. “However, we are seeing far better activity through the office over the past six weeks compared to six months prior.”

Mr Bousfield said nine from 11 properties sold at the company’s most recent auction day, and a number of tender and negotiation properties had also sold since then.

“Numbers attending auctions are growing, 53 attending a recent auction day. And while not all were bidding it showed increasing interest.

“Open-home numbers are very positive, and we now have over 30 auctions booked for December.

“All of these stats tell us that while REINZ data is reflecting decreases from previous years, actual activity in recent weeks would indicate much more buyer and seller positivity in the market, and a move towards the stats recorded by REINZ improving.”