Northland Property Report – April 2023
If you haven’t already, check out the latest quarterly publication from OneRoof featuring a market brief by our Principal, Jo Green.
“We are all aware that the market has been moving through a recessionary adjustment, and although we got off lighter than other parts of the country there can be no denying that Cyclone Gabrielle has left her mark. The combined effects of cleaning up property damage, road closures limiting travel movements from Auckland, the interest rates, lending criteria and local cost of living are all having an impact. For February, REINZ reported a median price of $710,000 for Whangarei which is a year-on-year decline of 10.1%. The million-dollar question is ‘are we at the bottom?’ For me the truthful answer is, while there are indicators to say so, I really don’t know, but I certainly hope so!
In the Tait Real Estate office, we are still seeing steady interest across all price brackets and although the days on market are slightly longer, we are still connecting buyers and sellers with very successful outcomes. This suggests the gap between buyers and sellers price expectations is closing at a fair rate. The number of properties for sale is returning to a more normal trend, which offers buyers a greater choice, and the decline in market values opens up new opportunities for first home buyers in the lower price range. We have also seen more bare land sections and new developments come to the market, due to the new district plan zoning enabling growth nodes. Although the cost of building creates caution for the conservative budget, there is a good level of activity at the higher end for quality land where less borrowing is required.
Regardless of the peaks and troughs, the annual average asking price in Whangarei has increased 120% over the past 10 years. There are pockets of growth happening all around Whangarei, with an increased confidence in Northlands commercial and industrial sectors that reflect an overall positive outlook for the future.”
