Sellers are hoping to get a substantial sum from the property market in Waikato, New Zealand.
According to Stuff, the real estate market of Waikato has been a seller's market towards 2016 as market prices continue to move upward. Thus sellers are on their feet to take advantage of the current trend.
According to the property report for December 2015 by Realestate NZ, Waikato saw a new record high in average sale price. The median asking price in December is $414,596 which is 6.3 percent up from November's record of $413,067. Waikato, along with Central Otago, is the only market that defies the continuing downward trend in asking prices throughout the nation. The national median asking price in December was $522,930 which is $40,000 less than the August 2015 record of $568,215.
As to the supply of housing in the markets of Waikato, Harcourts general manager Brian King from Hamilton, said the number of houses with a listing price is dwindling. Because of this, sellers bet on auctions hoping to get a hefty amount. According to Stuff, auctions, tenders and negotiations account more than half of the Hamilton listings of Harcourts. Property owners are taking advantage of the heating market and that the competition has become intense due to shortage in housing supply.
King said, "There are more buyers than sellers, so a lot of the vendors are choosing to go the auction way to get competitive bidding."
In this case, the gap in median asking prices in Waikato and the national average could get narrower and narrower in the future. The national median has increased by 3.7 percent in January to $542,514. All indicators are leaning towards rising home prices in Waikato according to Real Estate managing director Jeremy O'Rourke. And as migration continues, demand is outdoing supply fast.