There was a total of 121 houses sold in Nelson during July, an increase of 42 per cent from July 2019. Photo: File.

Nelson housing market booms post lockdown

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The Nelson housing market boomed back in July with the biggest month in 20 years as buyers moved to snap up homes after lockdown.

According to the Real Estate Institute of New Zealand’s latest figures, Nelson, Tasman and the West Coast had the largest increase in annual sales volume throughout the country.

In Nelson last month, house sales went up by 42 per cent – from 85 to 121. In Tasman sales increased by 56 per cent – from 61- 95.

This was the most house sales in July for 27 years in Nelson.

The median price for the Top of the South was also up 14.4 per cent on July last year.

REINZ chief executive Bindi Norwell says the region all saw median prices increase year-on-year, with the Tasman region increasing 14.2 per cent to $680,000.

“There are more first home buyers in the market this month and they appear confident and active,” she says.

“A similar number of investors are still present in the market compared to last month who are looking for rental investments.”

Bayley’s Nelson senior licensed residential sales specialist, Kellie Todd, says they have been seeing plenty of buyers in all price ranges with many prepared for multiple offer situations.

“We know there just isn’t enough supply for the demand out there. We’ve had a really busy August to date, it’s almost like our busy season has come early, but some sellers are still wanting to wait for spring to launch their properties. We are hoping the spring listings will help level the shortage of stock and balance it all out so we can get some of these buyers into new homes.”

As of Monday, on realestate.co.nz there are 111 houses for sale in the Nelson region and 128 in The Tasman region – almost half the number than in June.

Bindi says there is a positive attitude from investors regardless of what the next few months may bring.

“Overall, the market is busy driven by buyer demand and attractive interest rates as well as the desire for first homes buyers to either get on the property market or investors to remain in the market. It is expected to be more of the same as we head into Spring.”

She says the property market “continued to defy expectations” with the increase in sales volumes.