How Is the greater Kerikeri Market in comparison to the reports on national and regional levels?

The media does a great job of commenting on the property market at the national and regional level and the commentaries are coming fast and furious at the moment. At the national level, trends are highly influenced by what is happening in the major centres such as Auckland and Wellington due to the relatively high volume of transactions that occur there. We hope that our breakdown of what is happening on the ground in the Greater Kerikeri area is more useful to our customers, both current and future.

Here are a few key summary points for the Greater Kerikeri property market:

* The volume of sales in Greater Kerikeri through April is down by 21% for the same period last year

* Median house prices starting to flatten on a quarterly moving average basis. We have yet to see the type of price decreases that the larger centres are seeing.

* Inventory levels have increased year on year but are fairly level compared with last month

* Our feeder markets Wellington and Auckland are experiencing lower median prices and lower sales volume, as much as 40% less in Auckland

* Uncertainty continues about the impact of interest rate hikes, inflation, tougher lending rules and the economic effects of the war in Ukraine

* There are some positive tail-winds as people are freer to travel now that Covid restrictions are lifted, more enquiry from returning ex-pats and overseas buyers on our shores, continued interest from city escapees and some relief from the prohibitive rules put in place on lenders in December 2021 that should allow more loans to be passed from June.

Kerikeri’s 3 month moving average median house sales price was at a similar level to last month at around $1,070,000 starting to signal that price rises are flattening out. There are a few warning signals as direct enquiry levels are down and fewer multiple offers are being negotiated. Kerikeri appears to be returning to a relatively normal state historically where most buyers visit, take their time looking and sell their homes to move here. We call it a “drip feed” market as opposed to a market where there are 4 or 5 buyers for every property for sale as soon as it comes on the market. It is critical that selling strategies need to adjust accordingly.

Residential sales volumes are down 21% in the first 4 months of 2022 compared with the same period in 2021. 111 unconditional sales reported compared with 130 in the same period last year.

Higher stock levels are now providing more choice for buyers and most seem to be more cautious than last year and taking their time in their searches.  As a result, on average properties are taking a bit longer time to sell than last year but they are selling and prices appear to be holding for now.