FIGHTING THE FOMO

Published date01 March 2021
But they also say there is land out there and councils and the Government need to open it up for building.

The Reserve Management Act is stifling progress and until these issues are sorted prices will not likely recede.

In the meantime, FOMO (fear of missing out) rages on in the regions and this is also contributing to high prices.

Elanor MacDonald, of Ray White Hawke’s Bay, says the market started slowly last year but momentum was well underway by Christmas.

“The number of properties available has dropped considerably and we are still very short of properties to both sell and rent across Napier, Hastings and central Hawke’s Bay.

“It is difficult to see how and when this shortage will be alleviated.”

Rising prices are still an issue, especially for first-home buyers, due to the supply and demand problems.

“There is a lack of new development due to a shortage of affordable available land.

“Councils need to look at policy to allow further re-zoning and faster resource consent for land developments.”

Sellers who can afford to buy first and then sell are in the box seat, she says, along with investors who often don’t require the same level of due diligence as first home buyers.

Sellers reluctant to market their homes in case they can’t find another property are likely to miss out in a competitive situation when they put in offers conditional upon selling, and buyers need to move quickly with due diligence to ensure they have their ducks in a row before making offers.

While MacDonald still sees Covid as a threat, she says the market doesn’t appear to agree.

In Hamilton, Jeremy O’Rourke, from Lodge Real Estate, says last year “we went in with a housing crisis and came out with the same crisis.

“We didn’t have enough houses for our population beforehand and so afterwards supply continues to be the issue, not the pandemic.”

The buoyant Hamilton economy is attracting a lot of talent to the city, with housing consents hitting their highest levels last year but when, and if, the market will level out is impossible to predict, he says.

“For now, the biggest opportunity for buyers and sellers is the market itself. Whatever property a buyer can get into I would do so as the market continues to rise and those not in risk being left behind.”

Buyers may find opportunities in developments like duplexes and by hunting for good properties in less popular suburbs.

Fraser Coombes, managing director of Ray White Hamilton, says first-home buyers and investors remain active but...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT