Small investors re-enter housing market

SHARE

October saw the lowest monthly median price of $475,000 for a Wakatipu house this year.

The price is 13 per cent lower than September’s “higher than normal” $539,000, local Real Estate Institute of New Zealand spokesperson Kelvin Collins says.

The median is the middle figure across all sales.

Collins says the new stats “reflect stronger than normal sales volume below $500,000, predominantly to first-home buyers but we are also seeing small investors re-entering the market”.

The rolling three-month median is $517,000, he adds.

There were 42 residential sales, including nine sections, in the Wakatipu last month, down from 49 in September.

“A feature was the continued good demand for quality sections with six sales of sites over $500,000,” Collins says.

“This is a good sign for the building industry with most of these buyers proposing to build their dream home.”