It seems Hamilton is starting to appear as the next place to be buying. Jeremy O’Rourke, Lodge Real Estate’s managing director, said today that residential buyers seeking property in the Hamilton market are playing a waiting game.
“There are a lot of people actively looking for residential property in the Hamilton city market. What we’re not seeing is this ‘looking’ translating into as much ‘purchasing’ as we would expect. The number of homes sold in the city was up slightly in May to 232 from 204 in April. But this is down on the number of homes sold in Hamilton during May 2013, which was 301.
At the moment, people seem to be content to sit back and wait for additional market direction. However, we believe the market is starting to provide some more certainty.
“Employment opportunities in the city are abundant, there is generally solid business growth and exports are strong. With such a positive economic outlook, we should see an influx of people moving into the city for jobs over the medium term, which will eventually increase buyer activity,” explained Mr O’Rourke.
Hamilton home buyers ‘playing the waiting game’
The Economy Tanks
A sluggish housing market, falling dairy prices and rising interest rates have had little impact yet on consumer confidence, which remains at levels last seen during the mid-2000s boom, the Westpac McDermott Miller survey has found.
The quarterly survey’s index eased a marginal half a point to 121.2 from March levels, which was its highest since March 2005. Any level above 100 indicates more optimists than pessimists.
“While consumers’ economic optimism has come off the boil – especially in smaller centres and rural areas, where the drop in dairy prices will have been particularly salient – overall consumer confidence remains extremely high, and the survey gives little sense that households’ spending appetites have cooled,” said Westpac economist Felix Delbruck.
A net 30.8 per cent expect good economic times over the year ahead, down on 35 per cent in March but still the second highest reading in 10 years.
Bring On The New Owners
In March, New Zealand had a net increase of 3,800 migrants, which is the second highest gain on record1. Hamilton normally benefits from increased migration as people naturally disperse from the cities into the provinces. The pattern we normally see in these circumstances is increased demand on rentals, and eventually increased purchasing activity as those migrants move into home ownership.