Whangarei Market Update August 2020
Like most of the country, Whangarei is experiencing a low number of properties listed for sale and a high number of active purchasers. The stats I have seen do not give any hope that this is going to change in the short term. This is having the effect of fast sales and prices continuing to rise.
All open homes that I have recently attended have seen queues of people waiting to view each property, even in the pouring rain that we have had lately.
While this makes for a challenging environment in which to purchase, those who have taken the time to be prepared with finance and entities in place are securing deals with plenty of upside. One lovely client did recently secure a solid positive cashflow on a sub $400K purchase.
First home buyers have been very active and properties up to $450K are moving particularly fast (FH budget in Whangarei was mid to high 3’s
only last year). For those with larger budgets, there continues to be good value add opportunities readily available.
The latest statistics for REINZ show that the Whangarei District volume of house sales has dramatically increased between May (65) and July (118), while days to sell have dropped from 63 to 46 for the same period. From what I am seeing out there, I anticipate that the trend will prove to have continued in August.
There is a widely held view, supported by recent council decisions, that the area’s population is going to continue growing, and in part this is expected to be driven by ex-pat kiwis returning to NZ and many choosing the Whangarei area to be home rather than just a holiday destination.
The increased appetite for working from home due to changes enforced by our first lockdown has made moving away from the larger cities possible for many who previously needed to stay near to Auckland, Wellington, or Christchurch in order to maintain their employment and I believe that this will continue to attract new residents. I am on the lookout for my next Whangarei investment property.