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What’s been falling should spring back up, but no boom is expected.
According to real estate experts at Cotality, house values nationwide (including in Franklin) should experience modest growth until the end of the year after a period of (overall) slight decline.
“Affordability has improved compared with the peak of the market, mortgage rates have stabilised and listings appear to be easing slightly,”
Cotality’s Kelvin Davidson says.
“Sales activity has been lifting for some time now, but elevated listings are still keeping pricing power largely with buyers, which is why overall value growth has remained fairly subdued.”
The organisation’s latest Mapping the Market analysis shows figures vary at suburb-level across the country.
“Even within the same region, property values and trends can vary quite significantly depending on local supply, demand and economic conditions,” Davidson says.
According to the Mapping the Market report, the median current house values in Franklin vary between a little under $600,000 (Port Waikato) to almost $1.7 million (Clevedon). Other higher price areas include Waiau Pa and Bombay (both approx. $1.3 million).
In the region’s urban centres, values have been sitting at around $840,000 (Pukekohe), $764,000 (Papakura), $773,000 (Waiuku) and $694,000 (Tuakau).
Over the past year, median values have slid back slightly (by up to 6%) across most of Franklin with the exception of Clevedon which fell by 10.1%. While slight reductions have continued in most areas over the past quarter, slight increases are now being seen also, a sign that the tide is turning.
The amount of new housing in any given area has been applying some downward pressure on prices especially with regards to townhouses.
In general, the market has been more stable in rural regions. Davidson says this is likely due to better affordability and the strength of the farming sector at a regional level.
“Some of the more affordable regional markets linked to strong rural economies have been holding up well,” he says. “That combination of lower price points and stable local economic conditions can provide a bit more resilience when the broader market is subdued.”
Growth is expected (on average and overall), but the general election, debt-to-income lending restrictions and global economic risks remain important factors to watch, Davidson adds.
“Those factors should support some gradual value growth this year, but buyers and sellers remain cautious, so the prospect of a boom looks unlikely.”
Cotality’s Mapping the Market report is accessible via cotality.com.
