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The next few months offer a good opportunity for first-home buyers as investors take a breather in Hamilton's property market.However, those dreaming of buying a home in the city might want to act fast, as prices continued to climb.
The Waikato/Bay of Plenty region was one of six to reach new record high median prices in September, according the latest figures by Real Estate Institute of New Zealand (REINZ).
Waikato/Bay of Plenty jumped to $458,500 last month, compared to $390,000 for the same month last year.
Hamilton's median prices shot up by 20 per cent to $510,750 compared to last year.
The trend in sales volume has been easing with dropping from from 463 in September last year to 306 this year.
Lodge Real Estate's managing director Jeremy O'Rourke said the volume drop would likely lead to the price gain ease at a lesser rate.
Investor activity had continued to decline since the announcement of Loan to Value Ratio (LVR) restrictions, he said.
This month the new LVR restrictions will be introduced. The stricter rules from the Reserve Bank are aimed at property investors, however, some of the changes will hit first home buyers as the Reserve Bank has clawed back an easing in how much banks can lend to first-timers with smaller deposits.
He said because of the new rules, investors had been benched.
"The next few months offer opportunity for first-home buyers.
"Investors have been sidelined and are watching how it all plays out."
Ray White Hamilton director Carl Glasgow said the new lending rules had impacted a portion of the market but did not expect a long-term effect.
"Quite often when these things come in, everyone sort of panics for a moment, whereas it just takes people a moment to settle down and work out how they're going to work around that."
He said the median price came down to supply and demand and stock was still very low.
Waikato has about 11 weeks of stock, according to REINZ.
Inventory continues to rapidly fall across the country, with a 20 per cent decline in properties available for sale year-on- year and five regions with less than 12 weeks of supply, representing almost 38 per cent of sales volumes.
Wellington has seven weeks of supply available, with Otago under 10 weeks supply, Hawke's Bay with 10 weeks supply and Nelson/Marlborough with 11 weeks supply.
But six regions hit new record high median sale prices.
REINZ spokesperson Bryan Thomson said the real estate market in New Zealand appears to be in something of a two-speed mode at present, with Auckland pausing for breath during a wet school holiday period and ahead of likely new Spring growth.
"We are also seeing anecdotal evidence that first home buyers in Auckland are now favouring new builds as a way of getting finance in the light of the new LVR restrictions and the 'carve out' for new home construction. Meanwhile, across the rest of the country prices continue to rise, demonstrating strong price and volume growth."
Six regions have hit new record high median sale prices:
o Northland ($390,000)
o Waikato/Bay of Plenty ($458,500)
o Taranaki ($350,000)
o Wellington ($480,000)
o Nelson/Marlborough ($450,000)
o Otago ($296,000)
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