Insight - What the real estate market thinks

Black and White Real Estate managing director Tina Chamberlain. Photo/Warren Buckland

While real estate companies remain in fine fettle overall, some are warning that continued rising prices - even on a more subdued level than recently - will have ramifications for the region's overall economic performance.

Average house prices last month remained static month to month, although still rising on a yearly basis.

REINZ regional ambassador Elanor MacDonald said she did not expect a massive slow down anytime soon, given positive indicators in play for Napier and Hastings.

"The top end is usually the first to show any signs of a slow down and there has been a lot of top end properties come to the market in the last month.

"I don't expect there to be much change at all. Hopefully we will see a slight increase in stock levels. If we continue on that path that would be really good because that's where all our problems lie, especially in certain parts of the market."

Black and White Real Estate managing director Tina Chamberlain said plateauing house prices were a national trend.

"Personally I think the market is starting to plateau in terms of sale price following the nationwide trend.

"My concern looking forward is that if interest rates rise as forecast those first home buyers who have been forced to purchase in an inflated market could face affordability issues.

"This in turn could have a detrimental effect on the region's wider economy."

Coming up to celebrating their first year operating in Hawke's Bay, staff from the Ahuriri-based BK Agency say the market has gone from strength to strength - so much so the agency has already increased its sales force.

"The sales of residential homes are consistent with the affordability and the lifestyle the Bay can offer with both local buyers and those from the bigger regions consistent in their approach with us and their search for homes in Hawke's Bay," sales manager Shannon Sheridan said.

"We are however finding there is a shortage of to meet those demands. We have found the market to be generous to many sellers and with the level of buyers we are seeing missing out on their slice of paradise in the Bay this trend is set to continue.

"Real estate has always evolved. It serves a need in society for people to occupy space, and of course those needs change. In some sectors, the requirements are shrinking and in others they're growing.

"It is difficult to anticipate those changes but staying ahead of the game for our clients is what we need to be doing."