The latest property sales stats from REINZ for the Kerikeri area through May 31st show a similar number of sales for homes selling for over $500,000 as compared to the same period last year. However, it is a different story in other categories with a decline in the number of sales of homes under $500,000 and bare land. While demand for good buildable land and cheaper housing remains steady, prices have risen around Kerikeri reducing the number of homes available for sale under $500,000 and sections under $250,000. Consequently, total sales volumes are down 28% on the same period last year.
The median price for sections reached a record 10 year high level of $253,000 up 44% from $176,000 for the period through May in 2016. The median price for homes also reached a record level of $602,000 up 13% from $535,000 for the period through May in 2016. As a comparison, the national median house price for 2017 through May is $540,000. The average price for a home around Kerikeri in 2017 is $703,500 up 20% from $586,500 through May in 2016 driven by an increase in the proportion of sales in the higher brackets.
While on the surface these figures paint a fairly positive picture of the market for people selling there are definite signals that there is resistance on behalf of a growing number of buyers to paying these higher prices. These figures are a reflection of year on year results and past activity that can mask what is happening with prices being achieved in the current market. In recent months, a number of vendors have had to reduce prices to achieve a sale particularly as Auckland buyers are achieving less for their sales. At certain levels, price sensitive buyers either stay put or start to look for more affordable options in other places usually resulting in a leveling of the market as demand drops. Our expert sales team takes all of these factors into consideration to price and achieve the best result for our customers. Please don’t hesitate to contact us for a free, no strings attached appraisal if you want to find out where your property sits.