‘Green shoots’ in housing market

House prices here are still falling but realtors say “green shoots” and encouraging signs are starting to emerge.

Latest sales data provided by the Real Estate Institute (REINZ) for last month show the median price in Gisborne decreased by 8.6 percent year-on-year, to $575,000.

“There were signs of green shoots in Gisborne in July, a welcome change after months of being affected by severe weather events,” REINZ chief executive Jen Baird said.

“First-home buyers were the most active buyer group, coming back into the market despite the added challenges created by interest rates and lending restrictions.

“Most vendors are taking time to consider market conditions, before adjusting their price expectations, while others were still holding back. Local salespeople reported seeing a marked improvement in attendance at open homes, and auctions were likewise showing strong bidding.”

Sales for the month dropped off to 28, compared with 40 in the same month, last year.

REINZ Gisborne ambassador Mark Nicol said as a result of that the median price has also eased somewhat.

“This trend is throughout all of New Zealand with almost every area experiencing lower than normal sales volumes.

“For Gisborne, we are now seeing an increase in the inquiry numbers for both people wanting to purchase and sellers looking at coming to the market.

“There is still a shortage of stock available and buyers are realising that more often than not they will be competing with other purchasers for the same property.

“First-home buyers are starting to make themselves known in the market with investors taking a very strategic and cautious approach with many investors looking at divesting rather than purchasing but not turning away from good real estate that performs.

“The recent weather events over winter are the main contributor on the market volumes being down, but now there appears to be a pent-up demand building and a higher-than-average number of sellers making contact before spring hoping to make a move.”

Bayleys Gisborne director Simon Bousfield said the sales count was down purely due

to lack of listings on the market.

“At present, we are seeing an influx of buyers across all property ready and willing to buy. The most in-demand properties are in the $450,000 to $650,000 range, with many first-home buyers active.

“We are seeing really positive confidence re-enter the market. Days to sell are down on last month slightly, which again points to positive activity.”

In July last year, 78 percent of sales were over $500,000, and seven were over $1 million. This July, 55 percent were over $500,000 and two over $1 million.

“So, while the median is down from the highs we saw in recent years, we are seeing more of the éntry level housing on market.

“However, demand is evident across all price levels, illustrated by the activity we have seen across the different value properties.”