South Taranaki, like the rest of the region’s property market, is red hot with almost all home sales having more than one buyer making a written offer on a property. This is great for those that are looking to sell their home as the chances of getting the highest offer for their home is pretty much guaranteed. But what does this mean for those who are looking to purchase a new house in South Taranaki? Chances are those who are in the market are experiencing disappointment due to their offer going into a multi-offer scenario, there are also a number of cash unconditional offers. If you are a buyer in a multi-offer process, if you don’t put your best offer forward you may not have another opportunity to increase your offer.
What trends are we seeing in the South Taranaki market?
From March 2019 to March 2020, South Taranaki experienced substantial house price growth. The fastest appreciating suburb was Normanby, which grew by 20.45% during that period, followed closely by Opunake, which grew by 17.98%. According to an article by stuff house prices around Taranaki have grown considerably, especially in the sub-$500,000 category. Real estate agents around the mountain agree that government valuations are no longer a reliable guide for anything other than for councils to base a property’s rates bill on.
Eltham property market
According to our Eltham-based real estate agent Angela Chamberlain, as of October 2020 properties that are selling in the Eltham are averaging between $80,000 to $100,000 over GV.
“There is a shortage in properties of all price brackets, with houses that are presented well selling quicker, however, buyers are learning to look past presentation, as they can not be too fussy as they will miss out.”
Hawera property market
As the market is seeing high demand, low supply situation the value of properties in Hawera has increased accordingly. According to Hawera-based salesperson Danielle Hill, she is not only seeing properties selling quickly but she is also witnessing an increase in investors buying properties to either do up and sell or keep as rental investments. This is great for those who are looking to sell up their property in Hawera or have been sitting on long rental tenant lists. Danielle says; “the ideal home to sell is a rental investment property because we have numerous buyers looking to buy these, however, there are all sorts of buyers everywhere so any property is a property worth selling.” As there is no ideal home to sell as buyers are looking and considering anything.
Danielle also goes on to explain that the most popular suburbs for buyers are Hawera and Normanby as they are the most central to towns and schools. She also explains that “most properties are selling for over QV and can range from $60,000-$90,000 within those areas with a median house price is about $350,000.”
What should you expect?
Unlike other years COVID-19 has had a significant impact on the housing market. With many New Zealanders coming home from overseas resulting in an increase in our country’s population, this has added to the already stretched demand for houses. Not only is this increasing demand but low supply is compounding the issue. Rental properties owned by those working overseas are now seeing tenancies cancelled as owners move back home to live in their properties. This is causing a real shortage of rental properties as well as a shortage in residential homes on offer. McDonald Real Estate general manager Daniel McDonald is not expecting things to slow down any time soon; “There are lots of people yet to come home, lots of people are coming down from Auckland too. We’ve got a lot of room for growth.”
Looking to buy in South Taranaki? Here are our top tips
Tip one to buying in South Taranaki
Our number one piece of advice is to make sure you have all your ducks in a row before you start the process. Talk to your lending provider, whether it is your bank or a mortgage broker. Finding out how much you can borrow will help determine which open homes you should attend and be pre-approved means you are able to get in as quickly as possible with your best offer. Being prepared will help you be on the front line, especially as houses are selling fast and with multiple offers. There is no time to muck around.
Tip two to buying in South Taranaki
Be prepared to DIY. With homes being snapped up left, right and centre, as well as a shortage in supply you may not have the option to be “fussy”. When looking for a home be prepared to look at the bigger picture and the long-term value you could add to a property.
Tip three to buying in South Taranaki
Lastly, talk to a local real estate company. Outline what you are looking for and what your budget is. As locally-based real estate agents are the first ones to know about the latest listings they can inform you of a house as soon as it hits the market, rather than you waiting to see it in your copy of the property press which only comes out once a week. This relationship with a local real estate agent is crucial as many homes are selling after one or two private viewings, never making it to the website, TradeMe or open homes. If you’re in the market let a real estate agent know, they can keep you in the loop with what’s coming.
Looking to sell in South Taranaki? What you need to do
Tip one to selling in South Taranaki
Find a real estate company or agent to get a free appraisal done on your property. With multi-offers and homes selling well over QV you want to make sure you have the best person representing you when it comes to the negotiations.
Tip two to selling in South Taranaki
Be prepared to sell fast. Houses are selling after only a short time on the market, with homes that are well presented selling faster than those that need a little work done to them. If you are planning to sell then we recommend downloading our guide to preparing you and your home for sale. It is filled with lots of information and helpful tips to get the most out of your property sale.
Tip three to selling in South Taranaki
Enjoy! Now has never been a better time to sell a home. As multi-offers are now the new normal expect to make more money then you may have expected. If you would like to find out how much your home is worth then request a free no-obligation appraisal done on your home by one of our trusted real estate agents. Simply click on the button below and let us take care of the rest.