Gisborne median house price hits all-time high

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PHOTO: Gisborne house prices finished 2021 on an all-time record median high of $695,000. FILE

Latest data from the Real Estate Institute of New Zealand show the region’s median price rose by $105,000 between December 2020 and the end of last month, $285,000 up on the same time two years ago and $411,000 from five years ago.

The median price trend has been increasing strongly over the past few years but might be showing early signs of a decelerating rate of increase, REINZ regional director Neville Falconer said.

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“Listings were down notably in December, with a 34.9 percent decrease year-on-year, showing that many sellers are waiting to list in the new year when more people are around. The median number of days properties are spending on the market increased by five, largely due to lending criteria changes taking effect — a contributing factor to the decline in buyer numbers compared with previous months.

“Days to sell may increase further due to the new finance criteria which will begin to affect the price sellers receive if they find themselves under pressure and unable to hold out for a premium price.”

Property Brokers Gisborne branch manager Stefan McNeely said the figures showed prices were still “gradually going up” but new lending regulations could throw a “shadow” over the coming year.

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“I know of a couple of mortgage brokers who have pulled the pin on their business just because they are not getting in the queue. Lending is taking a lot longer for people to get approval and mortgage brokers are not getting to the front of the line as people are dealing directly with banks.

“It’s going to be an interesting year, that’s for sure, and I think there are going to be some great opportunities for both sellers and buyers.”