The Hawkes Bay Region’ s economy has performed robustly over the last year underpinned by the rural and viticulture sectors.
According to the ANZ Bank, economic activity in the region expanded for the second successive year. ANZ reports that in the year to September economic activity in the region grew by 2.5%. Employment in the region also grew, with just over 1,600 new jobs being generated which saw the unemployment rate falling from 8.5%, in September 2013 to 7.1% in the third quarter of 2014.Both business and consumer confidence within the region remain at elevated levels.
Against the positive economic backdrop the region’s property market has remained steady over the last year. Sales activity dipped in the June quarter but has rebounded subsequently. Sales increased by just over 10% in the September quarter. Prospects for the lift in sales activity being maintained are positive with the number of new listings being brought to the market surging in October.
Median sales values have remained steady for an extended period, fluctuating, on a quarterly basis, within a narrow band. The regional median sales value in the September quarter stood at $275,000 the same level as was recorded in September 2013 according to sales statistics released by the Real Estate Institute of New Zealand (REINZ).
Agency reports suggest that one of the primary reasons for the subdued levels of sales activity experienced over recent months has been a shortage of property being made available to the market. The number of new properties brought to market on a monthly basis across Hawkes Bay has averaged 418 over the last seven years. During the course of 2014 the average has been only 337, with under 300 new listings having been brought to market in both June and July.
This has resulted in a tightening of the market. realestate.co.nz illustrate this by calculating the number of weeks worth of property that is currently on the market. This takes account of the volume of sales taking place and the number of new listings being introduced to the market. The seven year average for the Hawkes Bay Region is 39.2 weeks. As of October the figure stood at just 32.1 weeks having fallen from 45 weeks as recently as July.
As mentioned above October saw a significant lift in new listings, 427 new properties were offered for sale, the highest monthly total since November 2013. The regional lift in listings mirrors the national trend with their being speculation that many potential vendors had decided to await the result of the national election before committing to a sales process....
Read the full MARKETBEAT report here.