Average house price in Nelson and Tasman almost half a million dollars
With house prices in Nelson increasing at a faster rate than Auckland, recent first home buyers are thankful to be in the market.
The latest monthly QV House Price Index shows Nelson house values have increased by 16.6 per cent year on year and 4.8 per cent over the past three months, which has surpassed the rate of growth in the Auckland market.
Hunter Wright and Sandi Langridge who were featured in Stuff's Close to Home series bought their first home in October after struggling to find a house within their budget.
Wright said it was a "massive relief" to be on the property ladder and he felt sorry for those who were still struggling.
The latest statistics from the monthly QV House Price Index show the average value in Nelson is now just shy of half a million dollars at $499,866.
Wright said the average house price in Nelson was around $440,000 when he started looking a year and a half ago so it was a "quite a leap".
He wasn't surprised that the growth in the region was faster than in Auckland.
"I would believe that because as soon as the for sale sign goes up it is sold the next day," Wright said.
"It is sad because everyone who is renting in Nelson could afford to pay off a mortgage, it is about the same price for entry level housing."
Houses in the Tasman District had also increased by 14.4 per cent over the past year and 5.0 per cent over the past three months and the average value in the district was $499,082.
Remax Elite Nelson director Kate Bradley said it was an "exciting" time for the real estate market which was driven by demand and house listings were currently in short supply.
"If Auckland is slowing down we are just a little behind them in speeding up, although we have had a really good year and especially the last half of the year has been brilliant."
She said people from out of town had been looking for investment properties in the region for quite some time and they had the ability to spend more.
"If you buy a million dollar property in Auckland as an investment you are probably going to get $600 a week for it because it is just an average house but if you spend $500,000 here you might well get $450 to $500 here, maybe slightly more."
She said LVR's (loan-to-value ratios) had slowed down investment buyers and to some extent, first home buyers as well.
While house values had risen across Nelson and the Tasman district, they were beginning to decrease in other parts of the country.
QV national spokesperson Andrea Rush said the main centres had seen a slowing rate of value growth, activity and demand in December after the introduction of the LVRs, which required a minimum 40 per cent deposit for investment properties.
"This coupled with the annual Christmas holiday period slow-down has led to a decrease in values in some parts of Auckland, Hamilton and Christchurch since November."
QV homevalue Nelson registered valuer Craig Russell said property values had continued to rise in the Nelson Tasman region given the low interest rate environment, strong regional economic performance and migration to the region.
"There is traditionally limited sales activity over the Christmas break and it will be interesting to see whether the property market has the same impetus it had through the latter stages of 2016."
The number of listings in Nelson had increased over the previous three months while in the Tasman district listing numbers had remained relatively stable.
"We appear to be entering the fear of missing out (FOMO) stage of the property cycle which combines the perception of always increasing property prices and idea that interest rates will remain relatively low."