Demand to drive house prices up

BOOSTED: Ahuriri saw a greater number of residential freehold sales which caused a strong median-price increase. PHOTOS/PAUL TAYLOR

Price growth in Napier and Hastings will likely continue because the number of houses for sale is not meeting demand, says valuer Andrew White of My Valuer.

"The market was being driven by demand from out of town buyers, putting pressure on local buyers," he said.

So far this year there was an increasing shortage of listings, resulting in a high demand/short supply trend fuelling the market.

Apart from Wairoa the first half of 2016 saw growth between 5 per cent and 10 per cent. Wairoa had no median price growth for the period.

The Napier median price has grown from $347,000 in 2015 to $383,000 over the first half of 2016.

The Hastings median price has grown from $271,275 in 2015 to $304,500 over the first half of 2016.

-Napier

The median number of days to sell is a record-low 25.

All Napier suburbs have shown significant growth so far this year, apart from Westshore which had just seven sales this year in a lower price bracket.

"In Ahuriri there were a greater number of residential freehold sales which has shown a strong increase in the median price. We also saw two sales over the $1 million mark. Overall median for the suburb is showing an increase of 35.75 per cent from 2015. To put this in perspective, Ahuriri has recovered to 2008 levels."

In contrast Marewa is 18.24 per cent above its 2008 market-peak median price.

Parklands is showing strong growth with the median price up 8.26 per cent, with unprecedented sales occurring in the high $600,000 bracket.

"Napier Hill still saw strong growth on the back of a 13.11 per cent increase for 2015, with a 10.37 per cent increase for the first half of 2016."

Marewa is up 23.35 per cent "indicating strong movement in the $200,000 to $350,000 price bracket".

Taradale recorded the most sales with 125 for the year so far.

-Hastings

Like Napier all suburbs, except Clive, have shown strong growth so far this year due to the forces of supply and demand.

"Clive's median price has decreased due to few sales occurring with little sales occurring in the new housing areas. This decrease comes off the back of the suburb being one of the top-performing suburbs for 2015.

"Flaxmere has been the top-performing suburb showing an increase of 27.78 per cent, due to an increase of investors entering this market."

Raureka and St Leonards both topped 20 per cent.

Coastal settlements Haumoana and Te Awanga have seen only 10 sales for the first half of this year but grew 9.16 per cent.

Havelock North sold the most houses at 203, the bulk of them above the $500,000 level.

Akina, Mahora, Parkvale and Raureka recorded consistent sales volumes in the six months.

-Towns

Little growth occurred in Hawke's Bay towns but sales volumes have been historically high.

Dannevirke saw the most sales at 63 and Waipukurau the greatest price gain at 6 per cent for the year so far.

Wairoa is yet to see any positive gain.