Hamilton house prices higher than 2007 peak

Published on Stuff.co.nz and the Waikato Times.

Over the past year, Hamilton has seen house prices soar past their 2007 peak as pressure in Auckland attracts our northern neighbours to a more affordable city.

State-owned valuer, Quotable Value (QV), reported that Hamilton's prices are 4.8 per cent higher than their previous peak eight years ago.

QV homevalue Hamilton registered valuer, Chris Price said, "The Hamilton market has been performing well and no winter slowdown in activity or interest has been seen yet.

"There has been a lot of interest from Auckland investors in the Hamilton housing market and more properties are now being sold by negotiation or auction rather than with asking prices."

He said the median sales price in Hamilton is now $379,000 with the potential to reach the $400,000 mark sometime this year which, if current trends continue, is highly possible.

Properties in Hamilton City have increased in value by 1.4 per cent over the past three months which gives a 4.1 per cent increase year-on-year.

These increases are echoed by estate agents in Hamilton, who said they expected the numbers to be higher than that.

Simon Lugton of Lugton's Real Estate said the supply is the lowest he can remember in Hamilton.

He said as people hunker down for winter, the supply on the market usually drops, but doesn't anticipate a pressure releasing increase come spring.

"We are getting a lot of Aucklanders looking at the Hamilton market place, both for investment, but also some people relocating as well. We've definitely seen some significant lifts in property [prices], probably no more evident than in our auction rooms."

Jeremy O'Rourke, Managing Director of Lodge Real Estate, also said Hamilton was experiencing a lack of supply.

"The number of properties available now has decreased to 640 properties at the end of May on the total market, and that's as low as we can ever remember. At the moment you have a lot of people who are looking to buy, but don't want to sell before they buy. It becomes a catch 22 situation."

O'Rourke also pointed to the time delay between high demand and builders having finished properties for sale, but if Aucklanders weren't buying into the Hamilton market, he didn't think prices would be increasing so rapidly.