“Sales volumes for the region are up 43.2 percent compared to October 2019.
Sixty-three properties sold — the highest sales count for an October month since 2005.
“Open homes are very busy as limited stock on the market means competition is high for any listing.
“First-home buyers and investors are both very active in the market due to continued low interest rates and lack of LVRs (loan-to-value ratios),” said Mr Falconer.
“Auctions continue to be a popular choice, with 74.6 percent of all sales within the region being completed by auction.
“New listings are up 18.8 percent from the same time last year, with stock selling quickly.”
Property Brokers regional manager Joe Snee said the data showed how desirable Gisborne was.
“It's outstripping large portions of the country.
“It's happening across the country but the volumes (of sales) here are unreal.”
“We sold 28 properties on Saturday under the hammer, over $14 million in one day, and there were multiple bidders on every house we put up.”
Further increases in activity could be expected on the back of the Reserve Bank indicating it would bring back restrictions on LVRs and provide cheap loans to banks.
Mr Snee said the Reserve Bank did what it could coming out of Covid-19 but that had created an unexpected demand.
“They will have to do something moving forward but they will have to be careful about what they do and what impacts it will have.
“Everything they have indicated doing will, in my mind, probably create a flurry at the back end of the year before they do it.
“First home buyers are winning at the moment because they can borrow, investors are winning because of (the lack of) LVR restrictions.
“To my mind the real losers are the non-home owners — the renters. As first-home-owners and investors buy houses there's fewer house for renters to live in on a week-to-week basis.”
Bayleys Gisborne franchise owner Simon Bousfield said he expected to see the market continue on the same path through the summer.
LVR restrictions had only been brought forward two months, to March, so heightened activity in the market would likely continue at least until then, he said.
A lack of stock and a greater number of buyers competing across each property were the main drivers.
Mr Bousfield said he did not think LVR restrictions would have a massive impact on the market.
“You look at somewhere like Gisborne and the jobs people hold and how the sectors are performing.
“They are still in a strong position, keeping their roles and having the ability to invest in something seen as a safe investment such as property, rather than putting that money elsewhere as they might have done in the past.”
Realter Bronwyn Kay said the market boiled down to supply and demand.
“It's the same thing all the time . . . there is still a large shortage of homes for those people who are out there looking.
“As soon as we get more stock, maybe the market will naturally cool and there won't be that fever in the market but right now that fever is still there.”
However, with interest rates so low, young first-time buyers were still well represented in the market.
“My view is if you want to buy a home, there's never been a better time,” said Ms Kay.
“In my 40 years of real estate I've never seen interest rates at this level.
“It is the young ones who are buying and very happy to be on the ownership ladder. So we are not seeing people feeling any pain (or) frustrated that they can't find a home, and that frustration means eventually you pay more than you would like to.
“But if the bank is allowing you to do that then obviously you are in a position to do so.”
