Hamilton’s house prices come as a bargain – if you are a homeowner in Auckland.
Tom and Chloe Corkill recently sold their 2-bedroom Greenlane home for $1.5 million and are now in the market to buy a four- to five-bedroom home and lifestyle block in the southern suburbs of Hamilton.
New parents say Hamilton’s accessibility to the great outdoors and being closer to family made the call to leave the super city easy.
And the pair aren’t alone as real estate agents ask a growing number of Auckland homeowners and professionals eyeing a shift southward.
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Talk of a possible cooling of Hamilton’s housing market is premature, the real estate boss said, given that demand for properties continues to outstrip supply.
But whether Hamilton’s homes are affordable depends on who you ask.
Housing Secretary Megan Woods announced $1b in funding to accelerate housing development. The video was first published in June 2021.
“If you asked a first-time home buyer, they would definitely say no,” said Bayleys Hamilton branch manager Mike Gascoigne.
“In terms of first-time homebuyers, it’s gotten to a stage where it’s quite difficult for these people to get into the market unless you have family helping you.”
Hamilton’s median property value now stands at $801,919 – up 110 percent since June 2015 ($381,793). And the time it takes to deposit a Hamilton property is now 8.9 years, up from 6.7 years (the average for 2004-20), according to a CoreLogic analysis.
The QV Home Price Index showed Hamilton’s monthly house price growth eased in May (2.3 percent) and June (1.2 percent) but Lodge Real Estate managing director Jeremy O’Rourke said Hamilton’s “severe shortage” of properties for sale was putting upward pressure on prices. the new one.
“We’re seeing a lot of deals on properties which means there’s a competitive edge that’s actually driving new highs,” O’Rourke said, adding agents are seeing more highly paid professionals moving into the city.
Low interest rates continue to attract investors to the housing market – a phenomenon that repeats itself around the world.
“In the United States they had the biggest price increase in all of America for 50 years and in the UK they had the biggest price increase since 2004. So globally, the low interest rates and security brought by property encourages new people to invest. in housing.”
Hamilton Harcourts Director Campbell Scott expects house price growth to continue through 2022 given the city’s property demand.
“Until demand is severely constrained, perhaps through a rate hike … or we make it easier for the private sector and Government to increase supply, not much will change,” Scott said.
Aucklanders’ interest in Hamilton properties is not new, in fact the newer suburban housing prices represent a “tolerable price bracket” for Auckland buyers and investors.
Scott says building a new home is always a viable option for the market sector, but it is becoming more challenging given the scarcity of land in the city.
“Getting sexy is one thing, but going through the approval process is expensive and time consuming. And now, as a result of the Covid supply chain issues, getting labor and materials and the like to build houses is almost untenable for some people.”
Lugtons Managing Director Simon Lugton said the supply of properties for sale typically deteriorates during winter which will put further pressure on home prices.
The city’s median house price is expected to hit $800,000 sometime this year. Hamilton’s median house price was $762,000 as of May this year.
Lugton said he could not see a drop in house prices given the growth Hamilton and Waikato had experienced.
“So many people have moved to this area, there are development constraints and the infill of green fields, there are not enough apartments being built. We will be short on housing for some time.”