Out-of-town buyers lift house values

Hawke's Bay Valuer Bevan Pickett said there was a shortage of good listings in the local market. Photo / Warren Buckland

New valuation figures show further evidence that growing interest from out-of-town buyers - including Aucklanders - is helping boost Hawke's Bay property prices.

According to the QV (Quotable Value) House Price Index for June, home values in Napier increased 0.4 per cent during the past three months and were up 1.6 per cent from the same time a year ago.

Residential property values in Hastings continued an upward trend seen during the first six months of this year, rising 2.5 per cent over the past three months and 3.1 per cent year-on-year.

The latest figures mean Napier values are now 3 per cent below the peak they reached in 2007 while Hastings values are just 0.7 per cent below their 2007 peak.

Valuer Bevan Pickett, of QV homevalue Hawke's Bay, said there was a shortage of good listings in the local market.

"There are a lot of buyers looking for a property that fits their personal criteria but they are finding thin pickings in terms of choice on the market.

"The strength lies with the vendors in most cases, especially if their property is well presented with desirable characteristics," Mr Pickett said.

"Multi-offer situations are becoming more common and we are now seeing more out-of-town buyers present in the market and some are willing to pay above local expectations for what the property is worth.

"This means the gap between vendor and purchaser expectations has narrowed, and while this is yet to result in any significant value increases for Napier home values, Hastings values are continuing on the steady rise seen over the first half of the year."

Mr Pickett said some buyers in the local market were Aucklanders who had begun looking further afield for more affordable options given the heat in the Auckland property scene.

QV's latest figures show Auckland values rose 5.5 per cent in the last three months, were up 17 per cent since the same time last year and rose 54 per cent since 2007.

Tremains Real Estate director Simon Tremain agreed it was "definitely a seller's market" with some properties that had been for sale for years finally starting to change hands.

There were a number of positive signs and despite it being winter buyer activity was the strongest he had seen it since the period before the 2007 peak, Mr Tremain said.

While Auckland buyers were showing more interest in the Hawke's Bay market - both in terms of purchasing investment properties and moving to the Bay - the majority of activity was coming from local buyers, he said.

"It's great to have that out-of-town interest because it helps the sellers achieve good prices. If this sort of activity is happening in winter, spring will encourage a lot more people to enter the market."

Mr Pickett said while a lot of properties were selling well, with some prices exceeding expectations, Hawke's Bay remained a bit of a "mixed bag" with other homes still struggling to sell.

"But there is certainly a lot more optimism than there has been in the past."