Lodge Real Estate managing director Jeremy O’Rourke said yesterday the Government’s first home grant coupled with new first home loan criteria available from 1 October, had sparked an influx of buyers into the Hamilton residential market.
“The Government’s new scheme, which lowered first-home loan deposit requirements to 5%, kicked in from 1 October and has had a great uptake in Hamilton. The result is that we’ve seen a mass influx of first-homebuyers coming into the lower end of the city’s market.
“This heightened first-homebuyer activity has sent ripples through other segments of the
residential market. Homeowners in lower brackets are seeing this as an opportunity to sell & trade up.”
Total Mortgages Ltd broker Jordan Cameron said he’d also seen a major impact on the Hamilton market as a result of the Government’s new scheme: “Prior to 1 October, the average time to turn around a home valuation as part of a bank loan process was 4 days. We’ve seen that timeframe blown out to 2 weeks.
“We’re pinning this change squarely on the increased first-homebuyer activity in the market due to the sheer volume of new valuations being requested.”
Mr O’Rourke said the heightened buyer activity meant Hamilton continued to have a shortage of homes for sale: “If this continues into late spring & early summer, we will certainly see home prices hold steady and possibly increase over coming months. Hamilton’s median is nearing the $600,000 mark and I wouldn’t be surprised if we see that record broken soon.”
Real Estate Institute figures out yesterday showed 245 homes sold in Hamilton in September, down from 284 in August & 248 in September 2018. The median price increased from $575,000 in August to a record $597,000 in September. On the realeststate.co.nz website, 638 homes were available for sale in Hamilton at the start of October, down from 662 at the start of August.
Attribution: Lodge, Total Mortgages.