Housing market in ‘steady as she goes’ state: Searle

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

House prices seem to have found a new normal after recent big drops, Gisborne realtors say.

Latest data from the Real Estate Institute (REINZ) shows the region’s median house price is now $650,000, down 5.1 percent on the same time last year.

“Unlike most regions in April, Gisborne saw an increase in its sales counts — up 10 percent year-on-year,” REINZ regional director Neville Falconer said.

“However, the sample size was relatively small from 30 properties sold in April 2022 to 33 properties sold in April this year.

“Auctions remain a popular method of sale for the region with 28.1 percent of sales by auction. Rising interest rates, fear of overpaying and the cost of living are contributing to a slower market pace throughout the region.

“The median of days to sell was up eight days year-on-year.”

Property Brokers acting Gisborne branch manager Philip Searle said the statistics showed the market was in a “steady as she goes” state.

“While the national median residential price shows a decline in value of 10.9 percent year on year, Gisborne prices have dropped only 5.1 percent.

“Sales volume shows a decrease of 10 percent in sales volume compared with April 2022 whereas the New Zealand overall reduction was 15.3 percent over the same period.

“The whole market while slowing somewhat, has definitely not stopped, with many buyers currently in the market, and we are seeing first -home buyers now back looking for property.

“Average days to sell in Gisborne over a 10-year period is 38 days. This has crept out to 49 days, reflecting the slowing of the economy.

“Agents in Gisborne are reporting no shortage of buyers in this market.

“Here in Gisborne we don’t really get the booms but we don’t tend to get the busts to the same extent as the bigger cities.”

Bayley’s Gisborne director Simon Bousfield said the new median felt right in terms of where realtors saw buyer behaviour and transactions.

“There is a good consistent sales count to draw from which provides further evidence we are fairly stable at these numbers for now.”

Across New Zealand, the median price for residential property (excluding sections) decreased 10.9 percent annually to $780,000 in April 2023.

REINZ chief executive Jen Baird said April tended to be slow due to public and school holidays.