Ray White Now New Zealand - October Edition - Page 12

House prices continue to climb ever higher in the Hawke ’ s Bay region , where the twin cities of Napier and Hastings have experienced growth of 31.6 per cent and 36.3 per cent over the last 12 months respectively .
On a shorter timescale , Napier house prices have increased by 5.2 per cent over the past three months to reach a new average price tag of $ 856,260 , while house prices in neighbouring Hastings have increased by 4.3 per cent over the same period to reach an average of $ 853,554 .
QV valuer Damian Hall commented : “ Buyers have become much more cautious in anticipation of rising interest rates and also as a result of the recent lockdown , with activity stalling slightly as a result .
“ There is also the concern of the increase in the cost of building materials with panic buying evident . The lack of stock and stall in the production and importation of certain materials is putting further pressure on the building and construction sector .”
Despite all this , Mr Hall said the region continued to grapple with high demand and a lack of listings . “ The Hawke ’ s Bay market remains positive despite recent market implications and government interventions . We suspect it will remain steady leading into Christmas − though a local outbreak of Delta could potentially have major ramifications ,” he added .
QV house price figures show Palmerston North has experienced slowly but steadily decreasing house price rises since April .
Over five consecutive months , the city ’ s rolling three-monthly rate of house price growth has gradually eased from a 2021 peak of 10.9 per cent in April to 4.3 per cent in September , still comfortably above the national average of 3.6 per cent . The average price tag of a home here is now $ 748,579 − a remarkable 35.2 per cent higher than at the same time last year .
QV property consultant Olivia Roberts said the recent outbreak of the Delta variant of COVID-19 had caused significant uncertainty in the economy at large , but they had yet to see any direct impact on the local property market .
“ We continue to see growth in property prices around the Manawatu area , but the rate of growth has slowed in recent months ,” she said . “ Real estate agents are reporting good levels of demand in the market with a lack of supply continuing to drive prices upward .