More than 300 people queued up to view a renovated bungalow in Auckland last weekend, as the heat in the city’s housing market continued to rise.
Ray White Kingsland director Tim Hawes, who is marketing 41 Cambourne Road, in Sandringham, said buyer demand right now was “next level”.
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Auckland’s housing market is typically quiet during January, with most buyers and sellers holding off decisions until February.
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However, Hawes said there had been no lull in the market this summer. He counted more than 1100 people at the open homes for the seven properties he is bringing to auction this month.
Such is the level of interest that a property he listed on January 6, a three-bedroom townhouse at 12/33 School Road, in Kingsland, has had its auction brought forward to 3pm tomorrow.
“You normally see a bit of buyer interest in January but the volume of people we’re seeing at open homes is higher than usual,” he said.
He said 41 Cambourne Road, which has a CV of $1.38 million, was proving popular with families as well as first home buyers who can stretch into the mid-$1 million price bracket.
12/33 School Road, in Kingsland, was listed on January 6 and is going to auction just 10 days later. Photo / Supplied
“This price range is appealing to the types of buyers who are driving the market right now,” he said.
Harcourts agent Kris Cunningham, who operates on Auckland’s North Shore, said the current shortage of listings was creating competition in the market.
Like Hawes, he too had crowds at his open homes last weekend.
“The good news for vendors is that the buyers are out there hunting. Anyone looking to buy wants to buy now, before the prices go up any further,” he said, adding that he had 14 new listings ready to go in February.
Bindi Norwell, chief Executive at REINZ, said: “Currently we have half the inventory levels we had back in December 2018. Therefore, there just isn’t enough choice for people looking to purchase, which has meant that there is significant pressure being placed on house prices in most parts of the country.
Norwell said low listings had put pressure on the market. Photo / Supplied
"When you add into the equation the fact that there are record low interest rates, it means that people are more willing to compete to secure the property they want,”
The REINZ figures for December, published today, show big price gains across the country. The median house price for New Zealand rose 19.3 percent in the 12 months to December 2020 to $749,000, while Auckland's median house price was up 17.4 percent over the same period, from $886,000 to $1.04 million.
Norwell said: “For the fourth month in a row, New Zealand has seen house prices reach a new record. Additionally, 11 regions and 27 districts saw record high median prices – a continuation of the pattern we’ve seen in the housing market for the last few months – highlighting how strong the residential housing market is in all parts of the country."
