$1M house boom

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$1M sales up 800% – total sales close to $1B – values up 15%

 

The number of million dollar homes sold in Nelson has jumped more than 800 per cent in the past three years, as Nelson house prices rise faster than anywhere else in the country.

In 2013 there were three homes sold in Nelson worth $1 million or more, so far this year there have been 28, according to information released to Nelson Weekly by REINZ.

That is helping push the total value of homes sold in Nelson and Tasman towards $1 billion for the first time, as well as a rise in house values which have increased by more than 15 per cent year-on-year.

The number of million dollar homes selling hasn’t surprised Bayleys Real Estate agent Anthony Carppe, who says the price rise is being driven by a lack of stock.

“The stock is the problem, there’s roughly a third less stock on the market and that throws the sale prices out and the average time of sale out and it doesn’t take long before you start seeing some silly prices,” he says.

“You add in the number of buyers from Auckland and Christchurch that are coming here, that also puts pressure on sale prices as well.”

In 2014 there were 12 seven-figure homes sold, in 2015 that dropped to 11 before this year’s record 28, with December sales still to be included.

Anthony says that usually houses over $1 million usually take longer to sell, but not recently,”

which is different from previous years”.

“I had one home that was on the market for $1.1 million and sold before the first open home. That was pretty rare for a property at that price to go so quickly.”

Overall, the sales in Nelson have topped $400 million and if you include Tasman’s $363 million, the wider region looks set to push the $1billion mark for the first time, with figures from November and December still to be included.

Last year, house sales from the final two months of the year in both Nelson and Tasman were more than $150 million. If that trend continues more than $920 million in real estate would have been sold during 2016, not including private sales or land purchases for home builds.

That’s up on $820 million in 2015.

The average house price has also increased. QV says Nelson home values have increased by 15.4 per cent year on year and 3.3 per cent over the past three months.

The average value in the city is now $489,338. The Tasman District also increased by 12.2 per cent over the past year and 5.1 per cent over the past three months. The average value in the district is now $487,011.

QV homevalue’s Hayley Dabinette says the Nelson and Tasman housing markets are continuing to see strong levels of activity and demand.

“There‘s been a late Spring surge of listings coming onto the market in Nelson this month with 229 properties listed on the market, compared with only 175 at the start of the month,” she says.