As we step into the season of Spring, we've observed a slight uptick in the number of new houses entering the market and an increase in sales compared to the previous month. This pattern is typical for this time of year as more listings become available due to heightened seller confidence. Nevertheless, the impending election looms nearer, and with the rise in interest rates and the persistent pressure of living costs, the numbers are somewhat subdued compared to the same period last year.
In Lower Hutt, real estate agents are still witnessing a rise in first home buyers attending open homes. Additionally, our agents are reporting an increase in private viewings, as buyers are eager to inspect properties before their first open home. Vendors continue to price their homes in accordance with the current market conditions.
Prices stopped falling around 9 weeks ago with the median property prices in Lower Hutt dipping by 3.2% year-on-year, settling at $689,000 this month. There is a clear positive change in the market with the Median Days to Sell having decreased from 52 to 38 over the past month. Houses are selling faster now that Spring has arrived. There is only about a four-week supply of homes on the market which is giving purchasers less choice than they prefer. It is good news for sellers.
Developments in the Hutt Valley region have experienced unprecedented price reductions, with many new home prices being cut to the bone as developers strive to maintain sales and keep their teams employed. Furthermore, there is a notable surge in investor interest in these new homes due to their attractive pricing. Banks have relaxed their lending standards and shared equity finance options have been popular with some first home buyers, those with lower deposits are finding these homes more accessible. We do not see prices coming down any lower for new homes.
Spring has injected fresh vitality into the housing market, expect this growth to continue.