Hamilton house prices could spike as properties new to market fell 32%

Lodge Real Estate in Hamilton, the city’s largest agency by volume, reported today that residential house prices could come under pressure as the number of new properties brought onto the market dropped a record 32% between May and June 2012.

The Real Estate Institute of NZ reported Tuesday that the national median house price rose by $3,000 to $372,000 in June - a new record high.  Hamilton’s median house price rose by 4.5% in June to $349,875.

Managing Director of Lodge Real Estate in Hamilton, Jeremy O’Rourke, says, “All year the difference between the national median price and the Hamilton median price has continued to widen.  This signals to buyers that Hamilton represents great value for money.

“But this could change as prices come under pressure due to a shortage of new properties coming onto the market.”

The city’s housing market is strong with Hamilton sales numbers being up 25% year-on-year for the first six months of 2012.  However, Mr O’Rourke says there is especially a lack of available properties in the mid-price range.

“A lack of availability of properties in the market between $250,000 and $275,000 led to a drop in the number of properties sold in this price range. This caused a shift in the distribution of sales rather than any improvement in values last month,” he explains.

Mr O’Rourke says overall prices are steady.  “Even with June’s spike, the median house price in Hamilton is still 6% lower than its all-time high of $365,000.”

Lodge Real Estate agents experienced consistent enquiry throughout the market during June with the suburbs of Rototuna, Hillcrest and Nawton leading sales numbers.

“Overall the market continues to show a restrained recovery, but it is far from what we would call, ‘booming’,” says Mr O’Rourke.Lodge Real Estate in Hamilton

June Residential Housing Market, Hamilton – summary:
       New properties brought onto the market in Hamilton dropped 32% between May and June 2012
       As at 30 June, Hamilton house sales were up 25% year-on-year for first six months of 2012
       June median house price in Hamilton was $349,875, compared to the national median of $372,000
       June’s median house price is 6% lower than Hamilton’s all-time high of $365,000