Hawke's Bay house prices hit all-time record high

Houses on Napier's Bluff Hill, where records are tumbling. Photo / File

House prices in Hawke's Bay have jumped more than $68,000 over the past year - pushing the region's property market on to yet another record-breaking high.

Latest sales figures from the Real Estate Institute show the median house price in the region is now $464,123 - up 17.4 per cent on the same time last year and 5.2 per cent up on the previous all-time high.

It is the second time in the year that a median price record has been surpassed.

Real Estate Institute of NZ (REINZ) chief executive Bindi Norwell said vendors were feeling confident and had raised the average asking price.

"But buyers are being cautious and are not rushing into making any decisions - creating a longer negotiation period which is up two days on the same time last year.

"Listings increased 20.6 per cent compared to last month which means we are likely to see increased volumes in the coming months.

"Overall, the market is continuing as it did during September and at this point, with very little indication of any major changes leading up to Christmas."

The region's previous record held at $445,000 for the previous two months after a slight dip in the market from the same record price noted back in March.

Tremains managing director Simon Tremain said with sales expected to be decided on right up until Christmas Eve, the new record price could be considered the new norm.

"Back in the early 2000s when the GFC came along, there were some real peaks and troughs but this time through it has been pretty consistent.

"The volumes are pretty consistent so you couldn't say there was an extra number of sales, or a low number of sales.

"Buyers are dealing with new price ranges and it has taken a little longer to get sales together. Now the market has settled in, it's looking good."

The average house price in Central Hawke's Bay is now $285,000 - up marginally on the same time last year ($282,750).

Meanwhile, the average price in Hastings is $435,000 - $33,000 up on the same time last year, and in Napier, prices rose a whopping $82,000 on last year. Napier's new median is $507,000.

For Napier, that was just $1000 away from the city's all-time record median, which was recorded in December 2017.

Harcourts Hawke's Bay general manager James Cooper said the new record median was a direct result of the lack of supply, and high demand for property.

"Also, Hawke's Bay has a number of key pull factors that is making the region an attractive destination for outside buyers, which is adding to that pressure."

"With regards to stock numbers, this time last year, new stock numbers were impacted by the election. This year, the increased stock is driven by more vendors coming to the market to take advantage of the opportunity to achieve premium prices."