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House prices up

Gisborne’s housing market last month experienced a big price rise as the number of houses available to buy falls to the lowest ever.

Latest data from the Real Estate Institute revealed Gisborne’s median house price last month was $355,099 — a rise of 16.2 percent on the same month last year.

The number of properties sold increased by 14.9 percent when compared to the same time last year, with more houses sold, REINZ regional director Neville Falconer said.

“The lack of listings and low stock in the region means that there has been a significant decrease in the number of dwellings available for sale year-on-year (-41.8 percent), the lowest in the North Island. Total inventory also decreased by 18.3 percent on last year, with only seven weeks’ total inventory available which is highly likely to be pushing prices up.

“Gisborne saw its lowest ever level of inventory at 71 properties (the previous low was last month at 79). We have seen large number of attendees at open homes and on auction days there have been multiple bidders where all properties were sold in excess of vendor expectations.”

Bayleys sales manager Karen Raureti agreed stock numbers were low.

“The properties that were listed sold very well. There are record numbers of buyers viewing our properties.

“There’s no real explanation, except I guess no reason for people to sell in July. We have new listings for August and September. It will be interesting how the numbers line up compared to last year.

“When you are in a relatively small market, dips in numbers are more dramatic than in the bigger markets. Our market in Gisborne is small compared to other centres around New Zealand because of our isolation. For example, if I wanted to sell my house today and buy something different my options are limited so I may not put my house on the market until something I like comes up or something forces me to act.

“For potential vendors in other centres around New Zealand there are more options for me to buy maybe by moving into another suburb or area.

“There are a lot of happy people in Gisborne at the moment with no real reason to sell.”

Property Brokers (formerly LJ Hooker) Gisborne branch manager George Searle said while prices were rising, lower interest rates meant houses were still affordable.

“There is a definite shortage of listings and that means sellers are certainly in the box seat.

“The continual easing of interest rates is making the higher prices more affordable for buyers.Until further sections are developed I cannot see the shortage disappearing.”

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